We present a new method for calculating the effective two-phase parameters of one-dimensional randomly heterogeneous porous media, which avoids the timeconsuming use of simulations on explicit realizations. The procedure is based on the steady state saturation distribution. The idea is to model the local variation of saturation and saturation dependent parameters as Markov chains, in such a way that the effective parameters are given by the asymptotic expectations of the chains. We derive the exact asymptotic moment equations and solve them numerically, based on their second order approximation. The method determines the effective parameters to a high degree of accuracy, even with large variations in rock properties. In particular, the capillary limit and viscous limit effective parameters are recovered exactly. The applicability of the effective parameters in the unsteady state case is studied by comparing the displacement production profiles in heterogeneous media and their homogenized counterpart.