Section 8 Fair Market Rent (FMR) for ZIP 07016 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,100
1 Bedroom	$2,380
2 Bedrooms	$2,870
3 Bedrooms	$3,580
4 Bedrooms	$4,100
5 Bedrooms	$4,756
6 Bedrooms	$5,327
7 Bedrooms	$5,753
8 Bedrooms	$6,041

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

24,074

Median Household Income

$155,972

Housing Units

9,661

Renter Percentage

22.5%

Occupancy Rate

97.6%

Renter Occupied

2,120

Housing Authorities Serving ZIP 07016

Elizabeth Housing Authority (Elizabeth, NJ) - 1,345 Section 8 vouchers
Plainfield Housing Authority (Plainfield, NJ) - 915 Section 8 vouchers
Union County Housing Authority (Elizabeth, NJ) - 439 Section 8 vouchers
Housing Authority City of Linden (Linden, NJ) - 362 Section 8 vouchers
Rahway Housing Authority (Rahway, NJ) - 257 Section 8 vouchers
Union Township Housing Authority (Union, NJ) - 167 Section 8 vouchers
Summit Housing Authority (Summit, NJ)

To determine if you should buy in ZIP 07016 (Cranford, NJ) for Section 8 investment, follow this decision tree:

Does the Fair Market Rent (FMR) of $2,460 cover the debt service on a property valued at $764,357?
- Yes: The FMR of $2,460 is sufficient to cover the debt service on a property costing $764,357. This means that landlords can expect to receive rental income that meets their financial obligations.
- No: The FMR of $2,460 does not cover the debt service on a property valued at $764,357. Landlords would need to supplement the income or consider properties with lower purchase prices.
Is the market rent ($3,033 ZORI) above, at, or below the FMR?
- Above: The market rent of $3,033 is higher than the FMR of $2,460. This indicates that landlords could potentially earn more from market-rate tenants than from Section 8 tenants.
- At: This scenario does not apply as the ZORI is not equal to the FMR.
- Below: This scenario does not apply as the ZORI is higher than the FMR.
Are 22.5% renters combined with an unknown number of days on the market (DOM) enough demand?
- It depends: With 22.5% of the population renting, there is some demand for rental properties. However, the lack of data on DOM makes it difficult to assess how quickly properties are being rented. A low DOM would suggest strong demand, while a high DOM would indicate weaker demand.

Given these points, landlords should carefully evaluate their financial needs and the potential for market-rate tenants before investing in ZIP 07016. The presence of a significant rental market suggests interest in housing, but the specifics of DOM will be crucial in determining the speed and success of finding tenants.

Data Sources: FMR data from HUD (2027). 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.