Location: Tulsa, OK | Metro: Tulsa, OK HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $960 |
| 1 Bedroom | $1,020 |
| 2 Bedrooms | $1,240 |
| 3 Bedrooms | $1,630 |
| 4 Bedrooms | $1,900 |
| 5 Bedrooms | $2,204 |
| 6 Bedrooms | $2,468 |
| 7 Bedrooms | $2,665 |
| 8 Bedrooms | $2,798 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 74136 (Tulsa, OK) for Section 8 investments, follow this decision tree:
1) Does the Fair Market Rent ($1120) clear debt service on a $267,522 property?
No. The fair market rent of $1120 does not provide sufficient income to cover the debt service on a property valued at $267,522. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs, which would likely exceed the rental income from a Section 8 tenant.
2) Is the market rent ($893 ZORI) above, at, or below the Fair Market Rent?
Below. The market rent, as indicated by the Zillow Observed Rental Index (ZORI), is $893, which is lower than the Fair Market Rent of $1120. This suggests that the market rate for rentals is below what the government will pay for Section 8 vouchers, making Section 8 properties potentially more attractive than market-rate rentals.
3) Are there enough renters (65.0%) and a 29-day days on market (DOM) to ensure demand?
Yes. With 65.0% of residents being renters and an average of 29 days on the market, there is strong demand for rental properties in ZIP 74136. This indicates that finding tenants, including those with Section 8 vouchers, should not be a significant challenge.
In summary, while the fair market rent of $1120 does not sufficiently cover the debt service on a $267,522 property, the lower market rent of $893 makes Section 8 vouchers more competitive. Additionally, the high percentage of renters and quick turnover times suggest robust demand for rental units. Therefore, despite the initial cost considerations, purchasing a Section 8 property in ZIP 74136 could still be a viable investment strategy, particularly if the focus is on long-term stability and government-backed rental income.
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.