Section 8 Fair Market Rent (FMR) for ZIP 07030 - 2027

Investment Score for ZIP 07030

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	$3,690
1 Bedroom	$3,770
2 Bedrooms	$4,190
3 Bedrooms	$5,090
4 Bedrooms	$5,970
5 Bedrooms	$6,925
6 Bedrooms	$7,756
7 Bedrooms	$8,376
8 Bedrooms	$8,795

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	$3,770	$631,553	0.6%	F
2BR	$4,190	$981,043	0.43%	F
3BR	$5,090	$1,637,930	0.31%	F
4BR	$5,970	$2,735,731	0.22%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07030 (Hoboken, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Hoboken, NJ, as of 2026, is set at $4140 for a two-bedroom unit. This amount represents 27.5% of the median household income in the area, which stands at $180,579. However, the actual rental market in Hoboken is significantly higher. The Zillow median price for a two-bedroom unit is $931,767, which translates into a monthly rent that is far above the FMR. Given the high cost of living in Hoboken, voucher holders face significant constraints in finding affordable housing. For instance, if we assume a typical mortgage payment of $4,000 per month based on the median home value, the actual rent would be much higher than the FMR, making it challenging for voucher holders to secure housing. #### Affordability & Renter Profile Hoboken has a population of 58,668, with a substantial 66.2% of residents being renters. This indicates a strong demand for rental properties. The occupancy rate of 92.8% suggests that the market is quite tight, with few vacancies available. Given the median household income of $180,579, most residents are likely to be professionals working in nearby New York City or other high-paying industries. The high rent-to-income ratio implies that the market is very competitive and not particularly affordable for low-income individuals. The price-to-FMR ratio of 18.8x further underscores this point, indicating that the actual rental prices are nearly 19 times higher than what is considered fair market rent by HUD standards. #### Investor Angle From an investor’s perspective, the ZIP code 07030 is not particularly cash-flow positive at the FMR levels. With the actual median rent for a two-bedroom unit being approximately $931,767, landlords would need to charge around $7,764 per month to break even on a mortgage payment of $4,000. This is well above the FMR of $4,140. Therefore, the investment grade for this ZIP code would be relatively low for Section 8-focused investors due to the limited number of units that can be rented out at the FMR levels. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high rent-to-income ratio, investors should focus on smaller units such as studios or one-bedroom apartments. The FMR for a one-bedroom unit is $3,680, which is still significantly lower than the actual market rates but might be more feasible for some voucher holders. 2. **Consider Renovation Projects**: Investors could look into purchasing older properties that are currently priced below the median and renovating them to increase their value. This strategy could help in achieving a better balance between the FMR and actual market rents, potentially making the property more attractive to voucher holders while still generating reasonable returns. 3. **Utilize Local Programs**: Hoboken has several local programs aimed at increasing affordable housing options. Investors should explore these programs to see if they can receive subsidies or tax breaks for offering units at or near the FMR. This could improve the financial viability of investing in Section 8 properties in Hoboken. #### Bottom Line Given the high cost of living and the significant gap between the FMR and actual market rents, the recommendation for Section 8-focused investors is to **Skip** this ZIP code. The tight market and high occupancy rates make it difficult to find properties that can be rented out at the FMR without significant financial loss. Additionally, the high price-to-FMR ratio indicates that the majority of the rental market is not aligned with the affordability goals of Section 8 vouchers. While there may be niche opportunities, overall, the investment climate is not favorable for those looking to exclusively focus on Section 8 properties. --- This analysis is based solely on the provided data and does not include any additional research or assumptions beyond the given figures.

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.