Location: Tulsa, OK | Metro: Tulsa, OK HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $710 |
| 1 Bedroom | $750 |
| 2 Bedrooms | $920 |
| 3 Bedrooms | $1,200 |
| 4 Bedrooms | $1,400 |
| 5 Bedrooms | $1,624 |
| 6 Bedrooms | $1,819 |
| 7 Bedrooms | $1,965 |
| 8 Bedrooms | $2,063 |
U.S. Census Bureau data (2024)
When considering whether to invest in ZIP code 74060 for Section 8 properties, follow this decision tree:
Step 1: Can the Fair Market Rent (FMR) cover debt service?
The FMR for ZIP 74060 in fiscal year 2024 is $890. To determine if this clears debt service, you must know the specific property's debt service requirements. If the property's debt service is less than or equal to $890, then the answer is yes; otherwise, no.
Step 2: How does market rent compare to FMR?
The average market rent in ZIP 74060, according to the Census ACS, is $792. This is below the FMR of $890. If market rents are below the FMR, it suggests that Section 8 tenants can afford the rent, making the investment more feasible. If market rents were above the FMR, it would indicate higher risk as some tenants might struggle to pay the required portion.
Step 3: Is there sufficient rental demand?
In ZIP 74060, 14.5% of residents are renters. Additionally, the days on market (DOM) for rentals is not specified. Assuming the DOM is reasonable, the 14.5% rental rate indicates moderate demand. However, if the DOM is high, it could mean that properties take longer to lease, reducing the attractiveness of the area.
If the FMR of $890 covers the debt service and market rent of $792 is below FMR, then the next consideration is the rental demand. With 14.5% of residents renting and assuming a typical DOM, the demand appears sufficient for a Section 8 investment. If the DOM is low, the answer is a clear yes. If the DOM is high, the decision depends on your tolerance for slower leasing periods and the potential impact on cash flow.
In summary, if the property's debt service is covered by the FMR of $890, market rent is below the FMR at $792, and the rental demand is strong enough with a reasonable DOM, then investing in ZIP 74060 for Section 8 is advisable. Otherwise, it depends on the specifics of the property and the local market conditions.
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.