Location: Jersey City, NJ | Metro: Jersey City, 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 | $2,520 |
| 1 Bedroom | $2,570 |
| 2 Bedrooms | $2,860 |
| 3 Bedrooms | $3,470 |
| 4 Bedrooms | $4,070 |
| 5 Bedrooms | $4,721 |
| 6 Bedrooms | $5,288 |
| 7 Bedrooms | $5,711 |
| 8 Bedrooms | $5,997 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,860 | $484,634 | 0.59% | F |
U.S. Census Bureau data (2024)
The Section 8 thesis in ZIP code 07029, which encompasses Harrison, NJ, is centered around the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $2080, while the market rent, measured by the Zillow Rent Index (ZORI), is $2,562. This represents a gap of $482, or approximately 23%, where the market rent significantly exceeds the FMR.
This gap has direct implications for landlords and small-portfolio investors. When the FMR is lower than the market rent, it means that landlords who accept housing vouchers are essentially subsidizing the difference between what the voucher pays ($2080) and the market rate ($2,562). In essence, voucher tenants pay 81% of the market rent, leaving landlords to cover the remaining 19%.
In the context of Harrison, NJ, where 78.2% of residents are renters, the median home value is $579,706, and the median income is $88,333, this gap can be seen as both an opportunity and a challenge. The high proportion of renters suggests a robust demand for rental properties, but the lower median income indicates that many residents may struggle to afford market rents without assistance.
Accepting Section 8 vouchers can stabilize occupancy rates in a neighborhood where many potential tenants might otherwise be priced out of the market. However, the financial impact of accepting these vouchers must be carefully considered. Landlords need to weigh the benefits of guaranteed, consistent rental income against the costs of maintaining properties at the required standards and the potential for slower turnover times.
To summarize, the $482 gap, or 23% difference, between the FMR and market rent in Harrison, NJ, highlights the financial dynamics landlords face when considering Section 8 tenants. While it ensures a steady stream of occupants, it also requires landlords to absorb a portion of the market rent, impacting their overall yield.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.