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 |
To determine if a landlord should buy in ZIP 74158 for Section 8 purposes, follow this decision tree:
1) Does FMR $1140 (zip FY 2024) clear debt service on a property?
No: The Fair Market Rent (FMR) of $1140 does not cover the debt service for properties in this area. This means that landlords would not be able to rely solely on Section 8 rents to meet their mortgage obligations. Landlords should consider other sources of income or subsidies.
Yes: If the FMR of $1140 does cover the debt service for a property, proceed to the next question.
2) Is market rent above, at, or below FMR?
Above FMR: If the market rent is higher than the FMR, landlords might find it difficult to justify renting at the lower Section 8 rate. This could result in fewer tenants willing to move into the property, leading to potential vacancies.
At or Below FMR: If the market rent is at or below the FMR, it aligns well with Section 8 rates, making it easier to attract tenants who qualify for the program. However, without specific market rent data, it's challenging to make a definitive assessment.
3) Are the percentage of renters and days on market enough demand?
It Depends: Without the exact percentage of renters and days on market (DOM) figures, it's unclear whether there is sufficient demand for rental properties in ZIP 74158. A high percentage of renters combined with low DOM indicates strong demand, while a low percentage of renters and high DOM suggests weak demand.
In conclusion, the viability of purchasing a property in ZIP 74158 for Section 8 investment hinges on the answers to these questions. Landlords must ensure that the FMR covers their debt service and that market conditions support both the Section 8 rate and overall demand for rentals.
Data Sources: FMR data from HUD (2027).
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.