Section 8 Fair Market Rent (FMR) for ZIP 07035 - 2027

Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area

Investment Score for ZIP 07035

F
Monthly Rent (2BR)
$2,400
Median Price (2BR)
$467,060
1% Rule
0.51%
Annual Yield
6.17%

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$1,760
1 Bedroom$1,990
2 Bedrooms$2,400
3 Bedrooms$2,990
4 Bedrooms$3,430
5 Bedrooms$3,979
6 Bedrooms$4,456
7 Bedrooms$4,812
8 Bedrooms$5,053

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $2,400 $467,060 0.51% F
3BR $2,990 $573,054 0.52% F
4BR $3,430 $714,558 0.48% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
11,120
Median Household Income
$123,234
Housing Units
4,094
Renter Percentage
20.5%
Occupancy Rate
98.1%
Renter Occupied
825

ZIP code 07035, Lincoln Park, NJ, is characterized by a relatively modest rental population. With a total population of 11,120, only 20.5% are renters, indicating that the majority of residents own their homes. This suggests that the area is more homeowner-dominated rather than renter-heavy, which implies that the demand for Section 8 vouchers might be less intense compared to areas with higher percentages of renters.

The median household income in Lincoln Park is $123,234, a figure that stands out in terms of economic stability. The average market rent of $1,857 represents approximately 15.1% of the median income, which is a manageable portion for most residents. However, when comparing this to the Fair Market Rent (FMR) of $2,240 for FY 2024, it becomes evident that there is some discrepancy. The actual market rent is lower than the FMR, suggesting that landlords who accept Section 8 vouchers could potentially receive slightly higher rents than the current market rate.

A landlord in ZIP 07035 can expect tenants who are likely to be financially responsible but may also have limited disposable income due to the high cost of living relative to their income. Given the lower percentage of renters, the competition for rental properties among voucher holders could be less fierce, allowing landlords to be selective. Tenants here will generally be seeking affordable housing options within the context of a high-income neighborhood, making Section 8 vouchers particularly attractive to those who cannot afford the market rates without assistance.

In summary, while Lincoln Park has a strong homeowner presence, landlords who cater to the 20.5% of renters should find that accepting Section 8 vouchers can provide a steady and reliable stream of income. The typical tenant will be someone who values the community's amenities and location but needs financial assistance to cover the cost of renting. Landlords should prepare for tenants who are likely to be cautious with spending and appreciate the stability that a Section 8 voucher brings.

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.