Location: Tulsa, OK | Metro: Tulsa, OK HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,060 |
| 1 Bedroom | $1,130 |
| 2 Bedrooms | $1,380 |
| 3 Bedrooms | $1,810 |
| 4 Bedrooms | $2,110 |
| 5 Bedrooms | $2,448 |
| 6 Bedrooms | $2,742 |
| 7 Bedrooms | $2,961 |
| 8 Bedrooms | $3,109 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,380 | $219,694 | 0.63% | D |
| 3BR | $1,810 | $292,525 | 0.62% | D |
| 4BR | $2,110 | $367,336 | 0.57% | F |
U.S. Census Bureau data (2024)
A decision tree for evaluating ZIP 74104 (Tulsa, OK) for Section 8 investments starts with the Fair Market Rent (FMR) and debt service coverage.
1) Does FMR $1290 clear debt service on a $235,551 property?
Yes: The FMR of $1290 can cover the debt service on a property priced at $235,551 if the monthly mortgage payment is less than or equal to $1290. For example, at a 5% interest rate over 30 years, the monthly mortgage payment would be approximately $1245, which is below the FMR. This indicates that FMR could support debt service.
No: If the monthly mortgage payment exceeds $1290, then FMR cannot sufficiently cover debt service. In this case, the landlord would need to consider properties with lower purchase prices or higher rental income sources outside of Section 8.
It Depends: If the monthly mortgage payment is close to $1290, landlords must factor in additional expenses such as property taxes, insurance, and maintenance. These costs must be considered to ensure that the total debt service does not exceed the FMR.
2) Is market rent $1,499 (ZORI) above, at, or below FMR?
Above: With ZORI at $1,499, market rents are significantly higher than the FMR of $1290. This suggests that landlords can potentially earn higher rents from non-Section 8 tenants, making the ZIP code attractive for broader investment strategies beyond just Section 8.
At: If market rents were closer to the FMR, landlords would find it challenging to justify higher rents for non-Section 8 tenants, reducing the appeal of the ZIP code for broader investment purposes.
Below: If market rents were below FMR, it would be an unusual situation indicating either a mispricing of the ZORI or a unique set of circumstances affecting the local rental market. This scenario would make ZIP 74104 particularly favorable for Section 8 investments.
3) Are 51.7% renters + N/A-day DOM enough demand?
Yes: A 51.7% rental rate implies a strong demand for rentals in ZIP 74104. While the Days on Market (DOM) is listed as N/A, assuming a reasonable DOM, this percentage suggests there is ample demand to support both Section 8 and market-rate rentals.
No: If the rental rate were much lower or if DOM was excessively high, indicating difficulty in renting out units, then the demand might not be sufficient to support Section 8 investments.
It Depends: The N/A for DOM means that landlords need to research further into how quickly properties are rented in this area. High DOM could signal a slower rental market, even with a 51.7% rental rate.
Based on the provided data, ZIP 74104 shows promise for Section 8 investments due to the FMR being sufficient for debt service and market rents being above FMR, indicating a healthy rental market. However, the lack of DOM data requires further investigation to confirm rental demand stability.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.