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 | $1,820 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,480 |
| 3 Bedrooms | $3,100 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,100 | $900,200 | 0.34% | F |
| 4BR | $3,540 | $1,135,726 | 0.31% | F |
| 5BR | $4,106 | $1,574,605 | 0.26% | F |
U.S. Census Bureau data (2024)
The ZIP code 07046 presents an interesting scenario for both renters and landlords. Households here earn a median income of $250,001, which places them in a relatively high-income bracket. However, when it comes to affording the market rate rent of $3,501, the situation becomes challenging. The disparity between income and rental costs suggests that many renters might struggle to cover their housing expenses without financial assistance.
In contrast, the Section 8 voucher payment standard of $2,170 is significantly lower than the market rate. This means that renters with vouchers have a much easier time finding affordable housing within this ZIP code. For landlords, accepting Section 8 vouchers can be a strategic move to attract tenants who can reliably pay their rent without the burden of exorbitant market rates.
With only 3.9% of the 4,585 population being renters, competition among landlords is likely to be fierce. Landlords must consider how to best position themselves to cater to the limited rental market. Offering properties at or near the voucher payment standard could be a way to ensure consistent occupancy and stable income.
The affordability gap highlights the need for landlords to weigh the benefits of accepting cash-paying tenants against those who use Section 8 vouchers. While cash-paying tenants might offer higher rents, the risk of vacancies due to the high cost of living could outweigh this benefit. On the other hand, voucher holders provide a steady stream of income, albeit at a lower rate, and reduce the risk of unpaid rent.
Takeaway: Landlords in ZIP 07046 should consider the advantages of accepting Section 8 vouchers. Although the $2,170 FMR is less than the market rate of $3,501, it ensures a reliable tenant base in a competitive and high-cost rental market. This strategy can lead to greater stability and reduced vacancy rates, which are crucial for maintaining a successful property portfolio.
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.