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 |
|---|---|---|---|---|
| 1BR | $2,380 | $321,302 | 0.74% | D |
| 2BR | $2,870 | $581,729 | 0.49% | F |
| 3BR | $3,580 | $819,633 | 0.44% | F |
| 4BR | $4,100 | $974,875 | 0.42% | F |
| 5BR | $4,756 | $1,274,405 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 07044, located in Verona, NJ, presents several considerations for landlords and small-portfolio investors. One primary concern is whether the Fair Market Rent (FMR) of $2,390 for 2024 will sufficiently cover the mortgage on a home priced at $756,745. According to recent property tax data from Essex County, where Verona is situated, the average property tax rate is around 2%. This implies that the annual property taxes for a home in this price range would be approximately $15,135. Assuming a fixed-rate mortgage at a typical rate of 4%, the monthly mortgage payment, excluding property taxes and insurance, would be roughly $3,300. Therefore, the FMR does not fully cover the mortgage payment.
A second objection is the relatively low percentage of renters in Verona, which stands at 20.7%. While this figure might seem concerning, it is important to note that the demand for rental properties in affluent areas can still be strong due to the transient nature of residents and the presence of young professionals and families looking for short-term living solutions. Additionally, the rental vacancy rate in Verona is below the national average, indicating a robust rental market despite the lower overall percentage of renters.
Lastly, investors may question if Housing Choice Vouchers will keep up with the market rents, currently estimated at $3,425. The FMR for a two-bedroom unit in Essex County is $2,140, which is significantly lower than the market rent. However, voucher holders often supplement the difference with their own funds, especially in areas with high demand like Verona. Furthermore, the federal government periodically adjusts voucher amounts based on local housing costs, although these adjustments may lag behind rapid increases in market rents.
To summarize, while the FMR of $2,390 may not fully cover the mortgage on a home priced at $756,745, the strong rental market and potential for supplemental payments by voucher holders can mitigate some of these concerns. Investors should carefully evaluate their portfolio strategy and consider the broader economic context of Verona before making decisions.
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.