Location: Oklahoma City, OK | Metro: Oklahoma City, OK HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $880 |
| 1 Bedroom | $950 |
| 2 Bedrooms | $1,160 |
| 3 Bedrooms | $1,570 |
| 4 Bedrooms | $1,760 |
| 5 Bedrooms | $2,042 |
| 6 Bedrooms | $2,287 |
| 7 Bedrooms | $2,470 |
| 8 Bedrooms | $2,594 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,160 | $77,640 | 1.49% | A |
| 3BR | $1,570 | $128,525 | 1.22% | A |
| 4BR | $1,760 | $144,885 | 1.21% | A |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 73117 in Oklahoma City, OK, reveals interesting insights into the potential returns for landlords and small-portfolio investors. The Fair Market Rent (FMR) for a 2-bedroom apartment in fiscal year 2024 is set at $940 annually. Using this figure, the implied gross yield for a property rented under the Section 8 program would be approximately 8.14%. This calculation is derived by dividing the annual rental income ($940) by the median home value ($115,564).
In contrast, the market rent for a similar 2-bedroom unit, as indicated by the Zillow Observed Rental Index (ZORI), stands at $1,247 per month, which translates to an annual rental income of $14,964. When this amount is used against the median home value, the implied gross yield jumps to about 13.0%.
To determine which scenario is more realistic, consider the local market conditions. With a renter density of 62.2%, there is a significant portion of the population seeking rental properties, indicating a strong demand for rentals. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly properties can be leased. Given the higher implied gross yield from market rents, it suggests that landlords could potentially achieve better returns if they are able to secure tenants willing to pay the market rate. Nonetheless, the stability and guaranteed income stream of Section 8, coupled with the high renter density, make it a viable option for those prioritizing consistent cash flow over higher yields.
In summary, while the market rent offers a higher gross yield of 13.0%, the Section 8 rent provides a more stable 8.14% yield. The choice between these two options should be based on the investor's risk tolerance and investment goals. For those looking for steady income with minimal vacancy risk, Section 8 may be preferable despite the lower yield. Conversely, investors seeking to maximize their returns might lean towards market rates, assuming they can maintain occupancy levels.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.