Section 8 Fair Market Rent (FMR) for ZIP 07005 - 2027

Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area

Investment Score for ZIP 07005

Monthly Rent (2BR)

$2,460

Median Price (2BR)

$545,602

1% Rule

0.45%

Annual Yield

5.41%

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	$1,800
1 Bedroom	$2,040
2 Bedrooms	$2,460
3 Bedrooms	$3,070
4 Bedrooms	$3,510
5 Bedrooms	$4,072
6 Bedrooms	$4,561
7 Bedrooms	$4,926
8 Bedrooms	$5,172

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
2BR	$2,460	$545,602	0.45%	F
3BR	$3,070	$683,577	0.45%	F
4BR	$3,510	$849,757	0.41%	F
5BR	$4,072	$1,134,701	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

15,307

Median Household Income

$132,629

Housing Units

6,148

Renter Percentage

25.2%

Occupancy Rate

94.4%

Renter Occupied

1,462

The Boonton area, located in the 07005 zip code, is a part of Morris County, New Jersey, known for its suburban charm and proximity to larger urban centers such as Morristown and Dover. This region offers a mix of residential and commercial spaces, attracting both families and professionals due to its excellent schools and access to major highways.

The Fair Market Rent (FMR) for a two-bedroom apartment in Boonton for fiscal year 2024 is set at $2090. This figure reflects the federal standard for affordable housing and can guide landlords in setting reasonable rental rates that align with government benchmarks.
The market rent for a two-bedroom apartment in Boonton, according to the latest Census American Community Survey (ACS), stands at $1,869. This indicates that the actual rental market is slightly below the FMR, offering landlords a realistic range to consider when pricing their units.
The median home value in Boonton is $713,730. This high median value suggests a strong local economy and a preference among residents for homeownership over renting.
Renters make up 25.2% of the housing market in Boonton. Despite the high median home value, there remains a notable segment of the population that prefers or requires rental housing, providing a steady demand for rental properties.
The median household income in Boonton is $132,629. This robust income level supports the ability of residents to afford higher rents and property values, making Boonton a financially stable area for real estate investments.

Given the data points above, Boonton presents a balanced market for real estate investment, particularly for those interested in rental properties. The gap between the FMR and market rent offers potential for price adjustments to attract tenants without exceeding the affordability threshold. The strong median income supports rental stability, while the relatively low renter share might indicate opportunities for expanding the rental portfolio to cater to the growing need for affordable housing options. For landlords and small-portfolio investors, Boonton's combination of accessibility, amenities, and financial health makes it a promising location for long-term investment.

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.