Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, NJ 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 | $2,020 |
| 1 Bedroom | $2,170 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,230 |
| 4 Bedrooms | $3,620 |
| 5 Bedrooms | $4,199 |
| 6 Bedrooms | $4,703 |
| 7 Bedrooms | $5,079 |
| 8 Bedrooms | $5,333 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,710 | $441,796 | 0.61% | D |
| 3BR | $3,230 | $534,985 | 0.6% | D |
| 4BR | $3,620 | $605,738 | 0.6% | F |
U.S. Census Bureau data (2024)
Avenel, NJ (ZIP 07001) is situated within the larger Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area. For fiscal year 2024, the Fair Market Rent (FMR) for Avenel is set at $2,270. This figure represents the maximum amount that a Section 8 voucher holder can pay for rent in this area. In comparison, the actual market rent in Avenel is slightly lower at $1,906.
The median home value in Avenel stands at $527,489, which suggests that it is neither a low-value nor an extremely high-value neighborhood within its metro area. The renter share in Avenel is notably high at 47.7%, indicating a significant portion of the population rents rather than owns their homes.
When evaluating Avenel against other ZIP codes within the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area, it appears to be a mid-tier neighborhood. The FMR and market rent are indicative of a moderate rental market, not unusually high or low compared to the metro average. The median home value also aligns with a middle-ground position, suggesting that while properties are not inexpensive, they are not excessively priced either.
The high renter share in conjunction with a median home value that is below the typical range for premium sub-markets within the metro area signals potential interest for landlords and small-portfolio investors looking for areas where there is a substantial demand for rentals. This combination often points to a Section 8 sweet spot, where the number of renters is high and the cost of housing is relatively affordable, making it easier for voucher holders to find suitable accommodation.
Investors should consider Avenel as a viable option for those interested in a stable rental market with a sizeable renter base. However, the analysis must account for the fact that the FMR is higher than the market rent, which could mean that landlords who participate in the Section 8 program might have to adjust their pricing to remain competitive within the local rental 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.