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 | $2,080 |
| 1 Bedroom | $2,250 |
| 2 Bedrooms | $2,800 |
| 3 Bedrooms | $3,340 |
| 4 Bedrooms | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,340 | $626,597 | 0.53% | F |
| 4BR | $3,740 | $686,289 | 0.54% | F |
| 5BR | $4,338 | $898,071 | 0.48% | F |
U.S. Census Bureau data (2024)
The real estate market in ZIP code 07067 presents a robust landscape for both landlords and small-portfolio investors, given the median home value of $635,403. This figure underscores a strong asset base, indicative of a stable housing market where property values are unlikely to experience significant declines. The fact that only 0.1% of listings have seen price reductions signals a seller's market, where demand outstrips supply, thereby enhancing pricing power for the next 12-24 months.
While the median days on market (DOM) is listed as N/A, which could suggest a brisk pace of sales, it is prudent to consider other metrics to gauge market activity. A low percentage of price reductions typically correlates with a shorter DOM, implying that homes are selling quickly at or near their asking prices. This scenario supports the notion that landlords and investors can maintain or even slightly increase rental rates without losing tenants.
On the rental side, the Fair Market Rent (FMR) for ZIP 07067 in fiscal year 2024 is set at $2420, while the current market rent, according to the Census ACS, stands at $2,047. This gap indicates an upward pressure on rents, suggesting that landlords can align their rental prices closer to the FMR without facing significant vacancy risks. For long-term investors, this dynamic implies a steady increase in rental income, which can offset holding costs and provide a reliable cash flow.
The setup indicated by these figures suggests a market where long-hold investors can expect modest appreciation, driven by the strong underlying asset values and the potential for rental rate increases. However, the lack of significant DOM data should be monitored closely, as extended periods of unsold inventory might indicate a shift in market conditions. Overall, the combination of high median home values, minimal price reductions, and favorable rental dynamics positions ZIP 07067 as a solid investment opportunity for those looking to capitalize on stable growth over the next couple of years.
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.