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 | $830 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,480 |
| 4 Bedrooms | $1,660 |
| 5 Bedrooms | $1,926 |
| 6 Bedrooms | $2,157 |
| 7 Bedrooms | $2,330 |
| 8 Bedrooms | $2,447 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,090 | $159,043 | 0.69% | D |
| 3BR | $1,480 | $191,365 | 0.77% | D |
| 4BR | $1,660 | $258,744 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 73139 in Oklahoma City, OK, reveals two distinct scenarios based on the Fair Market Rent (FMR) and the market rent rates.
First, using the annualized 2BR FMR of $940 for fiscal year 2024, the implied gross yield can be calculated. With a median home value of $190,115, the FMR-based gross yield is approximately 4.95%. This calculation is derived by dividing the annual rental income ($940 * 12 = $11,280) by the median home value ($190,115).
Second, considering the market rent rate of $973, the implied gross yield increases slightly. The gross yield based on the ZORI (Zillow Observed Rental Index) is about 5.15%. This figure comes from the annual market rent income ($973 * 12 = $11,676) divided by the median home value ($190,115).
The higher gross yield based on the market rent suggests a better return on investment compared to the FMR rate. However, the reality of the situation must also consider the 53.8% renter density in the area. This indicates that over half of the households in ZIP 73139 are already renters, which could affect the demand for Section 8 housing. Given the high proportion of renters, it is likely that the market rent rate is more reflective of actual rental conditions.
The Day on Market (DOM) data being N/A does not provide insight into how quickly properties are rented out, but with such a significant portion of the population renting, it is reasonable to assume that landlords who accept Section 8 tenants might experience less vacancy time compared to those who do not. Therefore, while the FMR-based gross yield of 4.95% is a conservative estimate, the market rent-based gross yield of 5.15% appears to be a more accurate representation of potential returns.
In conclusion, for ZIP 73139, the gross yield based on market rent is higher and likely more realistic given the local rental environment and the substantial renter population. Landlords and small-portfolio investors should anticipate a gross yield closer to 5.15%, rather than the lower FMR-based yield, when evaluating properties for Section 8 participation.
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.