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 | $1,790 |
| 1 Bedroom | $2,000 |
| 2 Bedrooms | $2,430 |
| 3 Bedrooms | $3,000 |
| 4 Bedrooms | $3,420 |
| 5 Bedrooms | $3,967 |
| 6 Bedrooms | $4,443 |
| 7 Bedrooms | $4,798 |
| 8 Bedrooms | $5,038 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,000 | $486,918 | 0.62% | D |
| 4BR | $3,420 | $524,839 | 0.65% | D |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 07063 in Essex County, Newark, NJ HUD Metro FMR Area reveals that the HUD Fair Market Rent (FMR) of $2,110 for FY 2024 significantly exceeds the market rent of $1,836 based on Census ACS data. This indicates that voucher tenants will generate positive cash flow at the FMR level, providing landlords with a reliable source of income above typical market rates.
To further analyze the investment potential, the median home value in ZIP 07063 stands at $483,371. By comparing the HUD FMR of $2,110 against the median home value, we derive a rent-to-price ratio of approximately 0.44%. This low ratio suggests that rental income alone does not justify the purchase price, implying that the primary advantage for investors lies in the guaranteed cash flow from voucher tenants rather than property appreciation.
The dynamics between renting and buying properties in this area do not heavily influence the decision-making process for investors, as the days on market (DOM) is listed as N/A and the price-cut share is an insignificant 0.1%. These factors indicate that the market is relatively stable, with minimal fluctuations in pricing and sales activity.
In conclusion, the strongest investor angle in ZIP 07063 is the consistent cash flow generated by voucher tenants at the HUD FMR rate, offering a secure and predictable income stream without the need for premium units or significant property upgrades.
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.