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 | $2,030 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,770 |
| 3 Bedrooms | $3,450 |
| 4 Bedrooms | $3,950 |
| 5 Bedrooms | $4,582 |
| 6 Bedrooms | $5,132 |
| 7 Bedrooms | $5,543 |
| 8 Bedrooms | $5,820 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,770 | $596,835 | 0.46% | F |
| 3BR | $3,450 | $765,007 | 0.45% | F |
| 4BR | $3,950 | $996,075 | 0.4% | F |
| 5BR | $4,582 | $1,324,044 | 0.35% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 07045, Montville, NJ, is set at $2,870 for fiscal year 2024. This figure represents the maximum amount the federal government will pay landlords who participate in the Section 8 Housing Choice Voucher program. It's important to note that this is not the rent you would charge your tenants; rather, it's the reimbursement limit for the government.
In comparison, the average rent for the area based on recent Census American Community Survey (ACS) data stands at $2,846. This indicates that the FMR closely aligns with the actual market rates in Montville, providing a reasonable estimate for potential income.
The 2.3% renter share in Montville suggests that there is a moderate demand for rental properties among low-income families. This means that about 2.3% of the population in this ZIP code is likely to be eligible for Section 8 assistance. Given the total number of households in Montville, this translates into a significant number of potential tenants who could benefit from the program.
If you're looking to acquire a property in this area for a Section 8 rental, the median home value in Montville is approximately $814,297. This is a substantial investment, but it can be justified by the stability and predictability of rental income through the Section 8 program. The reimbursement structure ensures consistent payments, which can be particularly attractive for first-time Section 8 landlords.
Before you proceed with purchasing a property, verify that the property meets the minimum housing quality standards set by HUD. These standards ensure that the rental unit is safe, decent, and sanitary for tenants. Meeting these criteria is essential to qualify for the program and to avoid any future complications.
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.