Location: Newark, NJ | Metro: Newark, 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 | $2,460 |
| 1 Bedroom | $2,780 |
| 2 Bedrooms | $3,350 |
| 3 Bedrooms | $4,180 |
| 4 Bedrooms | $4,780 |
| 5 Bedrooms | $5,545 |
| 6 Bedrooms | $6,210 |
| 7 Bedrooms | $6,707 |
| 8 Bedrooms | $7,042 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,180 | $755,089 | 0.55% | F |
| 4BR | $4,780 | $927,607 | 0.52% | F |
| 5BR | $5,545 | $1,117,066 | 0.5% | F |
U.S. Census Bureau data (2024)
The renter's perspective in ZIP code 07004 reveals a complex affordability landscape. Households with a median income of $115,980 face market rental rates of $2,656 per month according to the latest Census Bureau American Community Survey (ACS) data. This suggests that while not impossible, paying the market rate requires a significant portion of their monthly budget.
In comparison, the Fair Market Rent (FMR) set at $2,870 for fiscal year 2024, which is slightly higher than the market rate, indicates that voucher payments could potentially cover a larger share of the rent for eligible tenants. However, it's important to note that the FMR is an average figure and actual voucher amounts can vary based on tenant eligibility and specific unit sizes.
With only 21.3% of the 7,824 residents being renters, the competition among landlords is relatively low. This means that landlords have a smaller pool of potential tenants to attract, but also that they might be able to leverage the presence of voucher holders to fill vacancies.
The affordability gap in ZIP 07004 is evident when considering that even a household earning the median income would find it challenging to meet the market rate without assistance. For landlords, this translates into a strategic decision between accepting Section 8 vouchers or relying on cash-paying tenants. Accepting vouchers can ensure steady occupancy, though it requires compliance with HUD regulations and may limit rent increases. On the other hand, cash-paying tenants offer greater flexibility but come with the risk of vacancy in a competitive yet limited rental market.
The takeaway for landlords is to carefully weigh the benefits and drawbacks of each strategy. Vouchers can provide a reliable source of income and reduce the risk of vacancy, whereas cash-paying tenants might offer higher rents but require more effort to secure and retain. Understanding the local rental dynamics and the financial situation of potential tenants is key to making an informed decision.
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.