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 | $2,100 |
| 1 Bedroom | $2,380 |
| 2 Bedrooms | $2,870 |
| 3 Bedrooms | $3,580 |
| 4 Bedrooms | $4,100 |
| 5 Bedrooms | $4,756 |
| 6 Bedrooms | $5,327 |
| 7 Bedrooms | $5,753 |
| 8 Bedrooms | $6,041 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,870 | $465,881 | 0.62% | D |
| 3BR | $3,580 | $862,153 | 0.42% | F |
| 4BR | $4,100 | $1,188,500 | 0.34% | F |
| 5BR | $4,756 | $1,689,841 | 0.28% | F |
U.S. Census Bureau data (2024)
The ZIP code 07040, located in Maplewood, NJ, presents an interesting landscape for both renters and landlords. With a median household income of $173,500, it might seem that residents could easily afford the market rate rent of $2,983 per month, known as the ZORI (Zillow Observed Rent Index). However, when comparing this figure to the Fair Market Rent (FMR) set at $2,600 for the fiscal year 2024, it becomes evident that there is a significant affordability gap for renters.
This gap means that while some households can afford the market rate, others will struggle, leading to increased competition among landlords who accept housing vouchers. The voucher payment standard of $2,600 aligns closely with the financial capabilities of a portion of the population, given the high cost of living in the area. With 25.1% of the 25,613 population being renters, landlords have a substantial pool of potential tenants, but they must consider the realities of the local rental market.
The takeaway for landlords considering their strategy on voucher versus cash-pay tenants is clear. While accepting higher-paying, cash-paying tenants may be more lucrative, it is important to recognize the demand for affordable housing. Landlords who are willing to accept vouchers at the FMR of $2,600 can attract a segment of the market that finds the $2,983 ZORI too steep. This approach can ensure steady occupancy and maintain a good relationship with local housing authorities, which is beneficial in the long run. Moreover, it positions landlords favorably in a community where affordability is a concern for nearly a quarter of the residents.
In summary, landlords in ZIP 07040 should carefully weigh the benefits of accepting vouchers against the allure of cash-paying tenants. The market dynamics suggest that there is a real opportunity to serve the needs of the local population by offering units at or near the FMR, ensuring a balanced portfolio and stable tenancy.
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.