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 | $1,690 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $3,300 |
| 5 Bedrooms | $3,828 |
| 6 Bedrooms | $4,287 |
| 7 Bedrooms | $4,630 |
| 8 Bedrooms | $4,862 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,310 | $342,898 | 0.67% | D |
| 3BR | $2,880 | $460,410 | 0.63% | D |
| 4BR | $3,300 | $554,217 | 0.6% | F |
| 5BR | $3,828 | $661,530 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 07050, located in Orange, NJ, presents an interesting landscape for both renters and landlords. The median household income here stands at $52,563, which is notably lower than the market-rate rent of $1,892 per month, known as the ZORI (Zillow Rent Index).
Comparatively, the Fair Market Rent (FMR) for the fiscal year 2024, which is the standard used for determining voucher payments, is set at $1,810. This is slightly below the market rate but still represents a significant portion of the average household's income. To put this into perspective, a household earning the median income would spend approximately 42% of their monthly income on market-rate rent, whereas a voucher holder would pay around 34% of their income towards rent, with the remainder covered by the housing assistance program.
The high percentage of renters—74.5% of the total population of 34,181—indicates a strong demand for rental properties. However, the affordability gap between the median income and the market-rate rent suggests that many households struggle to find affordable housing without some form of subsidy. This creates a competitive environment for landlords, as they must balance the desire for higher rents against the reality of tenant affordability.
Landlords in ZIP 07050 should consider the benefits of accepting Section 8 vouchers. While the voucher payment of $1,810 is lower than the market rate, it ensures a steady stream of income and reduces the risk of vacancy. Moreover, given the high percentage of renters and the tight budget constraints many face, voucher holders represent a reliable segment of the market. Landlords who accept vouchers can tap into this demand, potentially securing long-term tenants and maintaining consistent occupancy rates.
In conclusion, landlords in Orange, NJ (ZIP 07050) should weigh the advantages of accepting Section 8 vouchers against the allure of higher cash-paying rents. The voucher standard aligns closely with the market rate, making it a viable option for those looking to attract stable, long-term tenants while ensuring financial security in a highly competitive rental market.
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.