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 | $2,090 |
| 1 Bedroom | $2,370 |
| 2 Bedrooms | $2,860 |
| 3 Bedrooms | $3,560 |
| 4 Bedrooms | $4,080 |
| 5 Bedrooms | $4,733 |
| 6 Bedrooms | $5,301 |
| 7 Bedrooms | $5,725 |
| 8 Bedrooms | $6,011 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 5BR | $4,733 | $2,069,234 | 0.23% | F |
U.S. Census Bureau data (2024)
The ZIP code 07021, located in New Jersey, stands out due to its unique demographic and economic characteristics. With only 2,361 residents, it has a notably low rental rate at 3.6%, indicating that most homeowners in this area own their homes outright or have mortgages. The median household income in ZIP 07021 is $250,001, which is significantly higher than the national average. This high income level is reflected in the median home value of $1,430,588, making it one of the most expensive areas in terms of property value.
When it comes to Section 8 housing vouchers, the Fair Market Rent (FMR) for ZIP 07021 in fiscal year 2024 is set at $2,490. However, the actual market rent for the area is considerably higher at $3,501, according to the latest Census ACS data. This significant gap between the FMR and market rent means that landlords in ZIP 07021 will likely face challenges in finding tenants who can afford the market rate while also qualifying for the Section 8 program. As a result, landlords might need to consider adjusting their expectations for rental income when participating in the Section 8 program in this ZIP code.
The data signature for ZIP 07021 reads as stable, given the high median income and home values. However, the disparity between the FMR and market rent introduces an element of transitional dynamics, particularly for landlords and small-portfolio investors looking to participate in the Section 8 program. They must be prepared for a potentially less fluid tenant market and the complexities associated with managing properties under a program that does not fully cover market rents.
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.