Section 8 Fair Market Rent (FMR) for ZIP 07060 - 2027

Investment Score for ZIP 07060

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,740
1 Bedroom	$1,930
2 Bedrooms	$2,360
3 Bedrooms	$2,890
4 Bedrooms	$3,280
5 Bedrooms	$3,805
6 Bedrooms	$4,262
7 Bedrooms	$4,603
8 Bedrooms	$4,833

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,360	$383,497	0.62%	D
3BR	$2,890	$511,122	0.57%	F
4BR	$3,280	$580,360	0.57%	F
5BR	$3,805	$706,866	0.54%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07060 (Plainfield, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 07060 in Plainfield, New Jersey, indicate that the cost of renting varies significantly based on the number of bedrooms. For a two-bedroom apartment, the FMR is set at $2,260 per month, which represents 34.5% of the median household income of $78,602. This suggests that the rent for a two-bedroom unit is relatively affordable compared to local incomes. However, the actual rental market prices can be quite different from these figures. According to Zillow, the median price for a two-bedroom home in this ZIP code is $379,868. The price-to-FMR ratio is 14.0x, meaning that the median home price is 14 times higher than the monthly rent for a similar-sized unit. This high ratio indicates that the rental market is likely to be more expensive than the FMR suggests. In reality, landlords might charge more than the FMR, making it challenging for Section 8 voucher holders to find suitable housing. The voucher program typically covers only up to the FMR, so tenants would have to pay any excess out-of-pocket, which could be significant given the disparity between FMR and actual rents. #### Affordability & Renter Profile ZIP code 07060 has a population of 48,363, with 61.9% of residents being renters. This high percentage of renters suggests a strong demand for rental properties in the area. The occupancy rate stands at 95.5%, indicating that the market is relatively tight, with few vacant units available. Given the high renter percentage and occupancy rate, there is a strong likelihood that many residents rely on affordable housing options such as Section 8 vouchers. The median household income of $78,602 provides some context on the financial capabilities of the residents. With 34.5% of this income allocated towards a two-bedroom apartment, it becomes clear that a significant portion of the population's budget is dedicated to housing costs. This tight budget constraint makes affordability a critical issue for many residents, especially those who are low-income and depend on government assistance like Section 8 vouchers. #### Investor Angle From an investor's perspective, the key question is whether investing in rental properties in ZIP code 07060 can generate positive cash flow when adhering to FMR guidelines. The FMR for a two-bedroom apartment is $2,260, which is notably lower than the median home price of $379,868. To determine if this is a cash-flow positive investment, we need to consider factors such as property taxes, maintenance costs, insurance, and mortgage payments. Given the high price-to-FMR ratio of 14.0x, purchasing a property at the median price would be very expensive relative to the rental income generated by FMR. Assuming a conservative estimate of 1% monthly property tax, $2,260 would cover approximately $22.60 in property taxes. Maintenance costs, insurance, and other expenses would further reduce the net income. Therefore, it is unlikely that an investor would achieve positive cash flow by strictly following the FMR guidelines. In terms of investment grade, the tight market and high demand for rentals suggest that owning rental properties in this area could be lucrative. However, the challenge lies in finding properties that can be rented at or below the FMR while still covering all associated costs. Investors should carefully evaluate the potential for positive cash flow before committing to purchases in this ZIP code. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as one-bedroom apartments. The FMR for a one-bedroom apartment is $1,840, which is less than the median home price but still within the range of affordability for many residents. This could provide a better chance of achieving positive cash flow. 2. **Target Properties Below Median Price**: To ensure positive cash flow, investors should target properties that are priced below the median home price of $379,868. This could mean looking for older homes or units in less desirable locations where the purchase price is lower. By doing so, they can more easily align their rental income with the FMR without incurring significant losses. 3. **Consider Mixed-Income Developments**: Developing mixed-income properties could be a viable strategy. By offering a mix of units with varying sizes and rent levels, investors can cater to both Section 8 voucher holders and higher-income tenants. This approach can help balance the financial impact of lower rents on Section 8 units with higher rents from market-rate units. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 07060 is to **Skip**. The high price-to-FMR ratio and the tight market conditions make it difficult to achieve positive cash flow while adhering to FMR guidelines. While there is a strong demand for rental properties, the financial constraints imposed by the FMR limits the profitability of investments in this area. Investors should look for opportunities in ZIP codes with a lower price-to-FMR ratio or consider alternative strategies such as developing mixed-income properties to balance their investment portfolio.

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.