Location: Tulsa, OK | Metro: Tulsa, OK HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $840 |
| 1 Bedroom | $900 |
| 2 Bedrooms | $1,090 |
| 3 Bedrooms | $1,440 |
| 4 Bedrooms | $1,670 |
| 5 Bedrooms | $1,937 |
| 6 Bedrooms | $2,169 |
| 7 Bedrooms | $2,343 |
| 8 Bedrooms | $2,460 |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $890 for ZIP 74001 can cover the mortgage on an average-priced home. According to recent data, the average home value in Avant, Oklahoma, is $368,537. With typical 30-year mortgage terms, a homeowner could expect a monthly payment of approximately $1,500 to $1,700, depending on the interest rate and down payment. Given that the FMR is lower than this estimate, it does not fully cover the mortgage costs, indicating that relying solely on FMR for rental income may not be sufficient.
The investor may also wonder if there is enough renter demand at 5.8%. Data shows that only 1.2% of houses and apartments in ZIP 74001 are available for rent, suggesting that the vacancy rate is quite low. However, the percentage of renters in the area is 15.5%, which means there is a reasonable demand for rental properties. This indicates that while the vacancy rate is low, there is still a market for rentals, though it may require competitive pricing and amenities to attract tenants.
Another concern is whether vouchers will keep pace with the local market rents. In ZIP 74001, the average market rent for 3+ bedroom apartments is typically between $500 and $749 per month, including utilities. Since the FMR is set higher at $890, it suggests that the voucher amounts may be sufficient for most rental units in the area. However, the data does not provide specific information on how voucher amounts adjust over time. It is important to monitor both the local rental market and the adjustments made to voucher amounts to ensure continued viability of rental investments.
In summary, while the FMR of $890 may not fully cover the mortgage on an average-priced home, there is a modest demand for rentals in ZIP 74001. Vouchers appear to be adequate for covering the majority of rental costs in the area, but ongoing monitoring is necessary to ensure they keep pace with rising market rents.
Data Sources: FMR data from HUD (2027). 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.