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 | $820 |
| 1 Bedroom | $870 |
| 2 Bedrooms | $1,060 |
| 3 Bedrooms | $1,390 |
| 4 Bedrooms | $1,620 |
| 5 Bedrooms | $1,879 |
| 6 Bedrooms | $2,104 |
| 7 Bedrooms | $2,272 |
| 8 Bedrooms | $2,386 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,060 | $96,601 | 1.1% | B |
| 3BR | $1,390 | $119,093 | 1.17% | B |
| 4BR | $1,620 | $149,276 | 1.09% | B |
U.S. Census Bureau data (2024)
The analysis for Section 8 properties in ZIP code 74110, located in Tulsa, Oklahoma, reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1020, while the market rent, as indicated by ZORI, is $1,041. This represents a gap of $21, which is approximately 2.06% of the market rent.
Given that the FMR is less than the market rent, landlords should be aware of the potential costs associated with housing voucher tenants below open-market rates. The difference of $21 per unit means landlords will earn less than what they could potentially receive from non-voucher tenants. However, this scenario also presents a unique opportunity for small-portfolio investors looking to tap into a stable income source, as the government guarantees timely payments.
In the broader context of Tulsa, where 46.3% of residents are renters, and the median home value is $94,108, with a median income of $42,054, the decision to participate in the Section 8 program requires careful consideration. Despite earning slightly less than the market rate, the stability of rental income and the security of having a tenant who is financially backed by the government can outweigh the lower rent amount. Moreover, it can serve as a strategic move to fill units that might otherwise remain vacant due to economic conditions affecting the local population.
To illustrate the impact, consider an investment property with four units. At the market rent of $1,041, the total monthly income would be $4,164. In contrast, if these units were rented under Section 8 at $1020, the total monthly income would be $4,080, resulting in a loss of $84 per month. Over a year, this amounts to a loss of $1,008. However, this calculation does not account for the potential reduction in vacancy rates and the lower risk of unpaid rent.
Tulsa's economic profile suggests that many residents rely on assistance programs such as Section 8. With a median income of $42,054, it is likely that a substantial portion of the population cannot afford market rents without some form of subsidy. Thus, landlords and small-portfolio investors must weigh the benefits of guaranteed occupancy against the slightly reduced rent compared to the open market.
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.