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 | $2,300 |
| 1 Bedroom | $2,590 |
| 2 Bedrooms | $3,130 |
| 3 Bedrooms | $3,900 |
| 4 Bedrooms | $4,470 |
| 5 Bedrooms | $5,185 |
| 6 Bedrooms | $5,807 |
| 7 Bedrooms | $6,272 |
| 8 Bedrooms | $6,586 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,900 | $796,728 | 0.49% | F |
| 4BR | $4,470 | $887,003 | 0.5% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 07023, which includes parts of New Jersey, is set to remain robust over the next 12-24 months, anchored by a strong median home value of $791,768. The fact that there is no indication of listings being reduced, coupled with an unspecified median days on market (DOM), suggests that the market is neither overheated nor oversupplied. This stability implies that landlords and small-portfolio investors can maintain their pricing power without significant adjustments.
On the rental side, the Fair Market Rent (FMR) for ZIP 07023 in fiscal year 2024 is projected at $2870, while the current market rent stands at $2,446 according to the Census ACS. This gap indicates a potential upward trajectory for rental prices, aligning with the overall trend of increasing costs. Landlords can expect to gradually raise rents to meet the FMR, enhancing cash flow and investment returns.
For long-term hold investors, the appreciation thesis is straightforward: the area's median home value, combined with the absence of widespread price reductions and the favorable rental dynamics, supports a positive outlook for property value growth. The market is likely to see modest appreciation, driven by sustained demand and limited supply pressures. However, the lack of specific percentage data on reduced listings and DOM means that any significant shifts in appreciation rates cannot be definitively predicted. Instead, the setup points towards a steady, reliable growth environment, suitable for those looking to build wealth through long-term real estate investments.
Investors should focus on properties that offer a balance between high rental yields and potential for capital appreciation. Given the median home value and the expected increase in rental rates, it's reasonable to anticipate that properties held for extended periods will see their values rise in line with broader market conditions. This scenario is particularly beneficial for those who can afford to wait out short-term fluctuations and capitalize on the long-term trends.
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.