Section 8 Fair Market Rent (FMR) for ZIP 07003 - 2027

Investment Score for ZIP 07003

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,910
1 Bedroom	$2,150
2 Bedrooms	$2,600
3 Bedrooms	$3,240
4 Bedrooms	$3,710
5 Bedrooms	$4,304
6 Bedrooms	$4,820
7 Bedrooms	$5,206
8 Bedrooms	$5,466

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,150	$259,702	0.83%	C
2BR	$2,600	$398,629	0.65%	D
3BR	$3,240	$649,418	0.5%	F
4BR	$3,710	$712,304	0.52%	F
5BR	$4,304	$773,247	0.56%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07003 (Bloomfield, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Bloomfield, NJ, as per the 2026 figures, is set at $2490 for a two-bedroom apartment. This amount represents 28.8% of the median household income in the area, which stands at $103,663. However, the actual rent for a two-bedroom apartment in Bloomfield, based on Zillow's median price, is significantly higher at $390,431. The price-to-FMR ratio is 13.1x, indicating that the actual rental prices are substantially above the FMR. This high ratio means that tenants using Section 8 vouchers face significant constraints in finding suitable housing. For instance, a tenant with a two-bedroom voucher would have to find landlords willing to accept a rent of $2490, which is far below the market rate. This could limit their options and potentially force them into less desirable neighborhoods or properties. #### Affordability & Renter Profile Bloomfield has a population of 53,771, with nearly half (49.3%) being renters. The occupancy rate is quite high at 97.4%, suggesting that the market is relatively tight. Given the median household income of $103,663, the majority of residents can afford market-rate rentals, but those relying on Section 8 vouchers might struggle to find affordable housing. The high rent-to-income ratio and the fact that the FMR is only 28.8% of the median income indicate that the market is indeed tight. The median household income is relatively high, which suggests that most residents are likely employed and earning a decent wage. However, the substantial gap between FMR and actual rents highlights the challenges faced by low-income households who rely on government assistance. #### Investor Angle From an investor's perspective, the ZIP code 07003 is not particularly cash-flow positive at the FMR levels. With the FMR for a two-bedroom unit at $2490, and the actual median rent being $390,431, it is clear that landlords would need to charge much higher rates to cover costs and generate profit. Given the high occupancy rate and the significant number of renters, there is demand for rental units. However, the FMR is so far below the market rate that it would be challenging to make a property financially viable solely through Section 8 vouchers. Investors looking to focus exclusively on Section 8 properties would likely face difficulties in securing tenants and maintaining profitability. The investment grade for this ZIP code is moderate to low when considering the strict limitations imposed by the FMR. While there is strong demand for rentals, the disparity between FMR and actual rents makes it difficult to achieve positive cash flow without significant subsidies or other forms of financial support. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as studios or one-bedroom apartments. The FMR for a one-bedroom unit is $2060, which is still well below the market rate but closer to what some landlords might be willing to accept. This strategy could help in securing more tenants and improving cash flow. 2. **Seek Non-Section 8 Tenants**: Due to the high market rates, landlords might want to explore options beyond Section 8 vouchers. Offering market-rate rentals to the large percentage of employed residents could be more profitable. Additionally, landlords could consider offering short-term leases or flexible payment plans to attract a broader range of tenants. 3. **Government Subsidies and Programs**: Investors should look into additional government programs and subsidies that might complement Section 8 vouchers. For example, the Housing Choice Voucher Program often allows for some flexibility in rent amounts, and combining this with other local or state-level assistance programs could help bridge the gap between FMR and actual rents. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 07003 is to **Skip**. The high price-to-FMR ratio and the tight market conditions make it challenging to find properties that can generate positive cash flow solely through Section 8 vouchers. Investors might find better opportunities in areas where the FMR is closer to the actual market rent, or they could consider diversifying their portfolio to include a mix of market-rate and subsidized rentals.

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.