Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, 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 | $2,180 |
| 1 Bedroom | $2,350 |
| 2 Bedrooms | $2,930 |
| 3 Bedrooms | $3,490 |
| 4 Bedrooms | $3,920 |
| 5 Bedrooms | $4,547 |
| 6 Bedrooms | $5,093 |
| 7 Bedrooms | $5,500 |
| 8 Bedrooms | $5,775 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,490 | $893,132 | 0.39% | F |
| 4BR | $3,920 | $1,190,809 | 0.33% | F |
| 5BR | $4,547 | $1,685,164 | 0.27% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 07059 within the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR area reveals several key points regarding the viability of rental properties for landlords and small-portfolio investors.
The first question addresses whether the rent math works. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $2760. However, the market rent, as indicated by ZORI, stands at $3,196. This suggests that landlords can expect to charge above the FMR, potentially increasing their profit margins but also indicating that the rent levels may be higher than what some tenants can afford based on government standards.
Regarding the affordability of acquisition, the median home value is $1,121,164. This high figure implies that purchasing homes in this area is expensive, which could pose a challenge for investors looking to acquire properties with limited capital. The lack of available data on days on market (DOM) and the low 0.1% price-cut share suggest that homes are selling quickly and at close to asking price, further complicating the acquisition process for those seeking bargains.
The third point concerns tenant demand. With a population of 16,811, the zip code has a relatively small pool of potential renters. Only 11.3% of the residents are renters, which means that the demand for rental properties is modest compared to other areas with higher renter shares. This lower demand could make it harder to find tenants willing to pay the higher market rents.
In conclusion, while landlords can potentially command higher rents than the FMR in ZIP 07059, the high cost of property acquisition and modest tenant demand present significant challenges. The median home value exceeds typical investment thresholds, and the low percentage of renters suggests a smaller market for rental properties. These factors combined indicate that this zip code may not be an optimal choice for small-portfolio investors seeking stable returns and quick occupancy rates.
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.