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 | $920 |
| 1 Bedroom | $1,000 |
| 2 Bedrooms | $1,220 |
| 3 Bedrooms | $1,650 |
| 4 Bedrooms | $1,860 |
| 5 Bedrooms | $2,158 |
| 6 Bedrooms | $2,417 |
| 7 Bedrooms | $2,610 |
| 8 Bedrooms | $2,741 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,000 | $149,625 | 0.67% | D |
| 2BR | $1,220 | $186,721 | 0.65% | D |
| 3BR | $1,650 | $265,452 | 0.62% | D |
| 4BR | $1,860 | $445,366 | 0.42% | F |
U.S. Census Bureau data (2024)
The ZIP code 73118, located within the Oklahoma City, OK HUD Metro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the market rent for the area. For fiscal year 2024, the FMR for ZIP 73118 is set at $1190, whereas the average market rent stands at $1454. This means that landlords can expect to receive a higher subsidy from the government compared to what they would typically collect from non-subsidized tenants, thereby enhancing their cash flow.
The median home value in ZIP 73118 is $232,321, which is relatively low compared to other metropolitan areas. This factor, combined with the lower FMR, makes it easier for landlords to maintain positive cash flow even when accounting for potential maintenance costs and vacancy rates. The stability provided by the Section 8 program, along with the higher subsidy, ensures that landlords can rely on consistent rental income, making ZIP 73118 a solid choice for anchoring a portfolio's cash flow.
While the ZIP code does not present itself as an appreciation play due to its N/A-day Days on Market (DOM) and a minimal 0.3% price-cut share, indicating a lack of significant upward pressure on property values, it still offers diversification benefits. With a 44.8% renter share and a median income of $69,827, landlords can expect a steady demand for rental properties. The income level suggests that there is a mix of affordability and economic stability among the residents, which supports the viability of rental properties within the Section 8 program.
In conclusion, ZIP 73118 is best suited as a cash-flow anchor within a Section 8 portfolio strategy. The $264 monthly difference between the FMR and market rent provides a clear advantage for landlords seeking stable and predictable cash flows. Although it does not offer the same potential for capital appreciation as other markets might, its characteristics make it a reliable component of any diversified investment portfolio.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.