Section 8 Fair Market Rent (FMR) for ZIP 07016 - 2027
Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area
Investment Score for ZIP 07016
D
Monthly Rent (2BR)
$2,870
Median Price (2BR)
$469,362
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 | $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 |
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 |
$2,380 |
$321,610 |
0.74% |
D |
| 2BR |
$2,870 |
$469,362 |
0.61% |
D |
| 3BR |
$3,580 |
$772,273 |
0.46% |
F |
| 4BR |
$4,100 |
$919,158 |
0.45% |
F |
| 5BR |
$4,756 |
$1,166,800 |
0.41% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$155,972
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). 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.