Location: Oklahoma City, OK | Metro: Oklahoma City, OK HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $940 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,680 |
| 4 Bedrooms | $1,890 |
| 5 Bedrooms | $2,192 |
| 6 Bedrooms | $2,455 |
| 7 Bedrooms | $2,651 |
| 8 Bedrooms | $2,784 |
The analysis for ZIP code 73157 in Unknown, OK, reveals limited data points for a comprehensive Section 8 cap-rate assessment. However, we can still derive some insights based on the available information.
The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 73157 for fiscal year 2024 is set at an annualized rate of $1080. This figure is critical for understanding the potential income from a Section 8 rental property. Given that the median home value is not available, it's challenging to calculate the exact cap rate for the area. The cap rate is derived by dividing the net operating income (NOI) by the property value, and without knowing the median home value, we cannot compute the precise cap rate.
In the absence of specific market rent figures, we must rely on the FMR to estimate the gross yield. Assuming a property owner would receive the full FMR amount annually, the gross yield would be calculated by taking the annual rent ($1080 for a two-bedroom unit) and dividing it by the property value. Since the median home value is not provided, this calculation remains speculative. If the median home value were known, say hypothetically $200,000, the gross yield would be 0.54% ($1080 / $200,000).
However, it's important to note that the lack of market rent data means we cannot directly compare the gross yield from Section 8 rentals to that of market-rate rentals. This makes it difficult to determine which scenario is more financially viable. Additionally, the unknown renter density and days on market (DOM) further complicate the analysis, as these factors influence the likelihood of finding tenants and the overall demand for rental properties in the area.
To summarize, the annualized FMR for a two-bedroom apartment in ZIP 73157 suggests a relatively low gross yield if compared to a hypothetical median home value. Without additional data on market rents, renter density, and DOM, it's impossible to definitively state which scenario—Section 8 or market-rate—is more realistic for achieving a higher gross yield. Investors should gather more detailed local market data to make informed decisions about their investment strategies in this area.
Data Sources: FMR data from HUD (2027).
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.