Section 8 Fair Market Rent (FMR) for ZIP 74014 - 2027

Investment Score for ZIP 74014

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,270
1 Bedroom	$1,350
2 Bedrooms	$1,650
3 Bedrooms	$2,160
4 Bedrooms	$2,530
5 Bedrooms	$2,935
6 Bedrooms	$3,287
7 Bedrooms	$3,550
8 Bedrooms	$3,728

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,650	$234,627	0.7%	D
3BR	$2,160	$278,303	0.78%	D
4BR	$2,530	$353,698	0.72%	D
5BR	$2,935	$478,540	0.61%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 74014 (Broken Arrow, OK) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Broken Arrow, OK (ZIP 74014) in 2026 provide a benchmark for rental affordability. According to the data, the FMRs for various bedroom types are as follows: - 0BR: $1240 - 1BR: $1310 - 2BR: $1620 - 3BR: $2130 - 4BR: $2470 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rents in the area need to be compared against these figures to understand the dynamics better. The price-to-FMR ratio for a 2BR unit is 11.8x, which means the median home value on Zillow is $230,208 while the FMR is only $1620. This indicates that the actual rental prices in the market are significantly higher than the FMRs set by HUD. For voucher holders, this creates a significant constraint. A 2BR unit, which costs $1620 under FMR guidelines, represents about 20.4% of the median household income ($95,501). This suggests that voucher holders are limited to a very narrow range of affordable housing options, particularly if they require larger units like 3BR or 4BR, which are even more expensive relative to their income. #### Affordability & Renter Profile In ZIP 74014, the population is 45,212, and only 12.1% of them are renters. This implies that the majority of residents own their homes, indicating a relatively low demand for rentals. The occupancy rate of 95.8% suggests that the rental market is fairly tight, but not overly saturated. Given the low percentage of renters, it is likely that those who do rent are primarily low-income families or individuals who cannot afford to purchase property due to financial constraints. The high price-to-FMR ratio of 11.8x for a 2BR unit further underscores the challenge of finding affordable rental properties. This ratio is unusually high, suggesting that the rental market is not aligned with the FMRs, making it difficult for voucher holders to find suitable housing. The median household income of $95,501 is relatively high, which could explain why many residents prefer homeownership over renting. #### Investor Angle From an investor perspective, the ZIP code 74014 presents both opportunities and challenges. The FMRs set by HUD are significantly lower than the actual market rents, which means that landlords who accept Section 8 vouchers might struggle to cover their expenses. For example, a 2BR unit priced at $1620 under FMR guidelines would need to generate enough revenue to cover mortgage payments, maintenance, insurance, and other operational costs. Given the high median home value of $230,208, the cost of acquiring a rental property in this area is substantial. Assuming a typical cap rate of around 5%, the annual net operating income (NOI) would be approximately $11,510. If a landlord were to rent out a 2BR unit at the FMR of $1620, they would need to ensure that the overall NOI covers all costs and provides a reasonable profit margin. The investment grade for this ZIP code is moderate to low for Section 8-focused investors. The high acquisition costs and the limited pool of potential tenants who can use Section 8 vouchers make it less attractive compared to areas with a higher percentage of renters and lower home values. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR and 1BR apartments. These units have FMRs of $1240 and $1310 respectively, which are more likely to be affordable for voucher holders. Additionally, smaller units tend to have lower acquisition costs, making them more financially viable. 2. **Consider Mixed-Income Properties**: Since the median household income is relatively high, there is potential for mixed-income developments. Investors could consider properties that cater to both voucher holders and higher-income renters. This approach would help balance the risk and provide a more stable cash flow. 3. **Explore Subsidized Housing Programs**: Given the tight rental market and the high cost of living, exploring additional subsidized housing programs beyond Section 8 could be beneficial. Programs like Low-Income Housing Tax Credits (LIHTC) or other local subsidies might help offset the financial burden of accepting Section 8 vouchers. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 74014 is to **skip** this market. The high acquisition costs, limited number of renters, and the high price-to-FMR ratio make it challenging to achieve positive cash flow. While there are some opportunities in smaller units, the overall market conditions are not favorable for this type of investment. Investors looking for more lucrative opportunities should consider areas with a higher percentage of renters and lower median home values.

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.