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 | $1,990 |
| 1 Bedroom | $2,250 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,380 |
| 4 Bedrooms | $3,870 |
| 5 Bedrooms | $4,489 |
| 6 Bedrooms | $5,028 |
| 7 Bedrooms | $5,430 |
| 8 Bedrooms | $5,702 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,380 | $617,616 | 0.55% | F |
| 4BR | $3,870 | $712,723 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 07033 presents a dynamic rental market that reflects both current trends and underlying pressures. With a Fair Market Rent (FMR) set at $2,360 for the fiscal year 2024, it's clear that the government recognizes the area's rising rental costs. However, the actual market rent reported by the Census ACS is lower at $2,023, suggesting a discrepancy between the official guidance and what tenants are currently paying.
The median home value of $625,447 indicates a relatively high cost of homeownership, which can push potential buyers into the rental market if they cannot afford to purchase. This dynamic is further supported by the fact that 25.5% of the population are renters, a figure that points to sustained long-term housing pressure as more individuals opt for renting over buying due to affordability concerns.
The lack of specific data on price-cut share and days on market (DOM) makes it challenging to definitively state whether supply outpaces demand or vice versa. However, given the higher FMR compared to the current market rent, there is an implication that landlords might be incentivized to increase rents towards the FMR level, indicating a potential demand-driven market. Additionally, the significant proportion of renters suggests ongoing pressure on the rental sector, likely leading to competition among tenants and possibly fewer vacant units.
In summary, ZIP 07033 is characterized by a rental market that is influenced by high homeownership costs and a substantial renter population. The trajectory of the market seems to be heading towards higher rents, driven by the gap between the FMR and current market rent, and sustained by the long-term presence of renters who find homeownership out of reach. These factors contribute to a market in motion, with inherent tensions between affordability and demand.
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.