Location: Newark, 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 | $1,810 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,470 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,470 | $400,092 | 0.62% | D |
| 3BR | $3,070 | $497,678 | 0.62% | D |
| 4BR | $3,510 | $551,414 | 0.64% | D |
U.S. Census Bureau data (2024)
The ZIP code 07062, located in Plainfield, NJ, within the Newark, NJ HUD Metro FMR area, presents a unique market scenario for Section 8 investors. The HUD Fair Market Rent (FMR) for this area is set at $1900 for fiscal year 2024, while the market rent, as measured by the Zillow Observed Rental Index (ZORI), stands at $2,175. This means that voucher tenants will cashflow marginally, with landlords receiving slightly less than the market rate.
To further analyze the investment potential, consider the median home value in the area, which is $498,001. This yields a rent-to-price ratio of approximately 0.43%, indicating that rental income alone may not fully cover mortgage payments and other expenses for most units. However, the HUD FMR can still provide a stable cash flow for landlords with premium units that offer higher rents due to better amenities or location.
The dynamics of rent versus buying in this market do not significantly impact the decision-making process for investors, given that the days on market (DOM) is listed as N/A and the price-cut share is only 0.2%. These figures suggest a relatively stable housing market where price adjustments are minimal and listings sell quickly, making it less likely for investors to be swayed by short-term fluctuations.
The strongest angle for investors in ZIP 07062 is stability. With a consistent HUD FMR and a low price-cut share, the market offers predictable returns and steady occupancy rates, making it an attractive option for those seeking long-term, low-risk investments.
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.