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 | $2,360 |
| 1 Bedroom | $2,670 |
| 2 Bedrooms | $3,220 |
| 3 Bedrooms | $4,020 |
| 4 Bedrooms | $4,600 |
| 5 Bedrooms | $5,336 |
| 6 Bedrooms | $5,976 |
| 7 Bedrooms | $6,454 |
| 8 Bedrooms | $6,777 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,020 | $957,451 | 0.42% | F |
| 4BR | $4,600 | $1,227,004 | 0.37% | F |
| 5BR | $5,336 | $1,815,949 | 0.29% | F |
U.S. Census Bureau data (2024)
The investment landscape for Section 8 properties in ZIP code 07028 presents several critical challenges that must be addressed. Firstly, the discrepancy between the market rent at $2,755 and the Fair Market Rent (FMR) at $2,420 for FY 2024 suggests a potential issue with tenant turnover. Landlords may find it difficult to retain tenants who are accustomed to the lower FMR rates when market conditions push rents higher.
Vacancy exposure is another significant concern, as the days on market (DOM) data is currently unavailable. This lack of information makes it challenging to predict how long a property might remain vacant between tenancies, which can have a substantial impact on cash flow and profitability.
Deferred maintenance is also a notable risk, especially considering the typical home value of $1,121,089 and the median income of $247,361. The high home values suggest that properties in this area may require more extensive and costly maintenance over time. However, the relatively high median income indicates that residents might be better positioned to cover the costs associated with maintaining their homes, which could mitigate some of these risks.
Despite these challenges, the high renter share of 9.0% is a positive indicator. A larger proportion of renters typically translates into higher demand for rental properties, including those that accept Section 8 vouchers. This demand can help ensure that properties remain occupied and reduce the risk of extended vacancies.
In conclusion, the risks associated with investing in Section 8 properties in ZIP 07028 are moderate, making it a suitable option for a first-time Section 8 landlord willing to manage the identified challenges.
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.