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 | $950 |
| 1 Bedroom | $1,010 |
| 2 Bedrooms | $1,230 |
| 3 Bedrooms | $1,610 |
| 4 Bedrooms | $1,880 |
| 5 Bedrooms | $2,181 |
| 6 Bedrooms | $2,443 |
| 7 Bedrooms | $2,638 |
| 8 Bedrooms | $2,770 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,230 | $227,440 | 0.54% | F |
| 3BR | $1,610 | $437,843 | 0.37% | F |
| 4BR | $1,880 | $638,770 | 0.29% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 74120, located in Tulsa, OK, presents a clear rental gap that landlords and small-portfolio investors should be aware of. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $1030. In contrast, the actual market rent, measured by Zillow's ZORI index, stands at $1,318. This means there is a $288 difference, representing a 27.9% gap between the two figures.
The disparity indicates that landlords accepting Section 8 vouchers will be renting their properties below the open-market rate. For a typical two-bedroom apartment, the FMR is significantly lower than what the market dictates. This situation can lead to a reduced rental income for landlords who choose to participate in the Section 8 program.
Tulsa, OK, has a high percentage of renters at 69.9%, making it a prime location for rental investments. However, the median home value of $284,211 and median income of $68,255 suggest that the local economy may not support the higher rents seen in the market. Accepting Section 8 tenants can provide a steady stream of government-backed payments, but it comes at the cost of lower yields compared to open-market rents.
To put this into perspective, if a landlord owns multiple units in ZIP 74120, they could see a significant impact on their overall portfolio performance due to this gap. Each unit rented under Section 8 at $1030 instead of $1318 means a loss of $288 per month, or approximately $3,456 annually, per unit. This discrepancy can affect the cash flow and profitability of the investment, especially when considering the maintenance and operational costs of the property.
In conclusion, while Section 8 can offer stability and a guaranteed tenant base in a highly rented area like Tulsa, OK, landlords must weigh the benefits against the financial impact of renting below the market rate. The decision to accept Section 8 vouchers should be made with an understanding of the economic context and the specific financial implications for individual properties.
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.