Section 8 Fair Market Rent (FMR) for ZIP 74055 - 2027

Investment Score for ZIP 74055

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	$1,080
1 Bedroom	$1,150
2 Bedrooms	$1,400
3 Bedrooms	$1,840
4 Bedrooms	$2,140
5 Bedrooms	$2,482
6 Bedrooms	$2,780
7 Bedrooms	$3,002
8 Bedrooms	$3,152

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	$1,400	$210,526	0.67%	D
3BR	$1,840	$278,920	0.66%	D
4BR	$2,140	$385,734	0.55%	F
5BR	$2,482	$550,646	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 74055 (Owasso, OK) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Owasso, OK, as defined by HUD for 2026, is set at $1390 for a two-bedroom unit. This figure represents 19.1% of the median household income of $87,506, indicating that it is designed to be affordable for low-income families. However, the actual rent for a two-bedroom unit in Owasso, based on Zillow's median price-to-rent ratio, is significantly higher at $204,593. The price-to-FMR ratio of 12.3x suggests that the actual rental prices are much higher than the FMR, which could pose significant challenges for Section 8 voucher holders. Given that the FMR is $1390 for a two-bedroom unit, landlords who accept Section 8 vouchers must ensure their rents do not exceed this amount. This can be a constraint, especially when comparing it to the actual market rates. For instance, if a landlord charges $204,593 annually, they would need to adjust their rent to $1390 per month to qualify for Section 8 tenants, which is a substantial reduction from the market rate. #### Affordability & Renter Profile With a population of 51,381, Owasso has a relatively high median household income of $87,506. Despite this, 29.1% of the population are renters, indicating a significant demand for rental properties. The occupancy rate of 96.3% suggests that the rental market is quite tight, with very few vacant units available. This tight market can lead to higher rental prices, which might make it difficult for low-income families to find affordable housing even with Section 8 vouchers. Given the high median household income and the fact that 19.1% of it is allocated towards a two-bedroom unit's FMR, it is clear that Owasso is generally a middle to upper-middle-class area. However, the 29.1% renter population includes a mix of individuals and families, some of whom may rely on Section 8 vouchers to afford housing. The challenge for these voucher holders is finding landlords willing to accept the lower rents mandated by the program. #### Investor Angle From an investor perspective, Owasso's rental market presents both opportunities and challenges. The FMR for a two-bedroom unit is $1390, while the Zillow median price for such a unit is $204,593. This means that an investor would need to consider whether they can achieve a positive cash flow at the FMR rate. To determine cash flow, we need to estimate the annual rental income and subtract the annual expenses. Assuming a two-bedroom unit rented at the FMR of $1390 per month, the annual rental income would be $16,680. If the annual expenses (including mortgage payments, property taxes, insurance, maintenance, and other costs) are close to the Zillow median price of $204,593, it is unlikely that an investor would achieve positive cash flow. However, if an investor can secure a property below the Zillow median price, there is potential for positive cash flow. For example, if an investor purchases a two-bedroom unit for $150,000, the annual expenses might be around $12,000 to $15,000, leaving room for a positive cash flow of approximately $1,680 to $4,680 per year. In terms of investment grade, Owasso appears to be a stable and desirable location due to its high median household income and strong occupancy rate. However, the tight market and high actual rental prices suggest that there is limited availability of properties at or below the FMR, making it challenging for investors to find suitable investments. #### Specific Actionable Insights 1. **Focus on Lower-Rent Properties**: Investors should focus on acquiring properties that are priced below the Zillow median but still within the FMR range. For instance, a one-bedroom unit with an FMR of $1130 might be more feasible for achieving positive cash flow. This would require careful selection of properties and possibly targeting areas with slightly lower property values. 2. **Consider Multi-Family Units**: Given the higher FMR for larger units, investors might consider multi-family properties where they can spread out the costs across multiple units. For example, a three-bedroom unit with an FMR of $1830 might offer better cash flow potential if the overall property cost is manageable. 3. **Engage with Local Landlords**: Networking with local landlords can provide valuable insights into the willingness to accept Section 8 vouchers. Some landlords might be more flexible or have different criteria for accepting vouchers, which could help investors identify opportunities that align with their financial goals. #### Bottom Line For Section 8-focused investors, Owasso, OK, presents a mixed picture. While the high median household income and strong occupancy rate indicate a stable market, the tight rental market and high actual rental prices make it challenging to find properties that offer positive cash flow at the FMR. Therefore, the recommendation for investors is to **Hold** or **Skip** this ZIP code unless they can identify specific opportunities that meet their financial criteria, such as lower-priced properties or multi-family units where costs can be effectively managed. In summary, Owasso's rental market is competitive and expensive, which limits the attractiveness for investors looking to leverage Section 8 vouchers for positive cash flow. Careful consideration and strategic property selection are essential for success in this market.

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.