Section 8 Fair Market Rent (FMR) for ZIP 07036 - 2027

Investment Score for ZIP 07036

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	$1,580
1 Bedroom	$1,790
2 Bedrooms	$2,160
3 Bedrooms	$2,690
4 Bedrooms	$3,080
5 Bedrooms	$3,573
6 Bedrooms	$4,002
7 Bedrooms	$4,322
8 Bedrooms	$4,538

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	$1,790	$246,918	0.72%	D
2BR	$2,160	$419,723	0.51%	F
3BR	$2,690	$570,053	0.47%	F
4BR	$3,080	$626,865	0.49%	F
5BR	$3,573	$706,028	0.51%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07036 (Linden, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 07036 (Linden, NJ) in 2026 are as follows: - 0BR: $1520 - 1BR: $1720 - 2BR: $2080 - 3BR: $2600 - 4BR: $2960 These figures represent the maximum amount that a Section 8 voucher holder can be expected to pay towards rent. However, the actual rents in Linden, NJ, are significantly higher. For instance, the Zillow median price for a 2BR property is $411,993, which translates to a monthly mortgage payment of approximately $2,000 based on typical financing terms. This implies that the actual rent for a 2BR property would likely be around $2,000 per month, considering the cost of ownership and maintenance. The price-to-FMR ratio for a 2BR unit is 16.5x, indicating that landlords would need to charge well above the FMR to cover their costs. Given these dynamics, voucher holders face significant constraints. A 2BR unit priced at $2,000 per month would require a subsidy of nearly $1,000 to make it affordable under the voucher program. This high subsidy requirement could limit the number of landlords willing to participate in the Section 8 program due to the administrative burden and potential risks associated with government oversight. #### Affordability & Renter Profile ZIP code 07036 has a population of 45,671, with 42.3% being renters. The occupancy rate is 95.9%, suggesting a tight rental market where demand exceeds supply. The median household income is $91,882, which means that a 2BR unit priced at $2,000 per month represents 27.2% of the median income. This is a relatively high percentage, indicating that affordability is a concern for many residents. The tight market conditions imply that there is little oversupply, and landlords have the upper hand in setting rental prices. Given the high rent-to-income ratio and the significant gap between actual rents and FMR, it is likely that many renters struggle to find affordable housing options. This situation creates a challenging environment for low-income families who rely on Section 8 vouchers, as they must navigate a market where rents far exceed the FMR. #### Investor Angle From an investor perspective, the ZIP code 07036 presents a mixed picture. While the high occupancy rate suggests strong demand, the price-to-FMR ratio indicates that cash flow will be limited if landlords adhere strictly to the FMR guidelines. For example, a 2BR unit with an FMR of $2080 would generate a monthly rent of $2080, but the actual market rent is closer to $2,000. Therefore, landlords who accept Section 8 vouchers would need to rely heavily on subsidies to maintain profitability. In terms of investment grade, the ZIP code appears to be moderately attractive. The high occupancy rate and strong demand suggest stability, but the high price-to-FMR ratio indicates that the market is not particularly favorable for investors seeking to maximize cash flow. Additionally, the administrative complexity and potential risks associated with participating in the Section 8 program might deter some investors. #### Specific Actionable Insights 1. **Target Properties Below Market Value**: Investors should focus on acquiring properties that are below the market value, specifically those that can be rented out for close to the FMR. For instance, a 2BR unit priced at $2,000 per month would be more attractive if it can be acquired for less than $411,993. This would allow for better cash flow even with the lower rent ceiling imposed by the Section 8 program. 2. **Consider Mixed-Income Developments**: To mitigate the risk of relying solely on Section 8 subsidies, investors might consider developing mixed-income properties. This strategy involves offering a mix of units that cater to both voucher holders and market-rate tenants. By doing so, landlords can balance their income streams and reduce dependency on government subsidies. 3. **Engage with Local Housing Authorities**: Building a strong relationship with local housing authorities can help landlords secure more Section 8 vouchers. This is crucial given the high demand and limited supply of affordable housing. Engaging with housing authorities can also provide insights into future changes in FMR and other regulatory requirements. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 07036 is to **Hold**. The market is tight, with high demand and limited supply, making it stable. However, the high price-to-FMR ratio and administrative complexities associated with the Section 8 program mean that cash flow will be constrained. Investors should carefully evaluate their acquisition strategies and consider mixed-income developments to balance their risk and reward profiles.

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.