Location: Newark, NJ | Metro: Newark, 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 | $2,460 |
| 1 Bedroom | $2,780 |
| 2 Bedrooms | $3,350 |
| 3 Bedrooms | $4,180 |
| 4 Bedrooms | $4,780 |
| 5 Bedrooms | $5,545 |
| 6 Bedrooms | $6,210 |
| 7 Bedrooms | $6,707 |
| 8 Bedrooms | $7,042 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,350 | $669,843 | 0.5% | F |
| 3BR | $4,180 | $829,562 | 0.5% | F |
| 4BR | $4,780 | $1,027,836 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 07068, located in Roseland, NJ, within the Newark, NJ HUD Metro FMR Area, serves as a strong cash-flow anchor for a Section 8 portfolio strategy. This designation is based on the significant spread between the Fair Market Rent (FMR) and the market rent, as well as the median home value.
In fiscal year 2024, the FMR for ZIP 07068 is set at $2870. However, the market rent stands at $3,297, indicating that landlords can potentially earn above the FMR by renting properties to tenants who are not part of the Section 8 program. This creates a scenario where landlords can leverage the guaranteed payments from the Section 8 program while also having the flexibility to charge higher rents to other tenants, thus enhancing overall cash flow.
The median home value in ZIP 07068 is $821,593, which suggests a robust property market. This high median home value supports the idea that the area is stable and likely to maintain its property values, making it a reliable choice for long-term investment. The stability of the housing market also means that landlords can expect consistent rental demand, further bolstering their cash flow.
While the area does not offer significant potential for appreciation plays, given the lack of data on price-cut shares and days on market (DOM), it excels as a cash-flow anchor. The 17.7% renter share and median income of $164,458 indicate a diverse tenant base with a mix of renters and homeowners, suggesting that there is a steady demand for rental properties. Landlords can use this information to strategically place Section 8 units within their portfolios, ensuring they have a reliable source of income while also benefiting from higher market rents elsewhere.
To summarize, ZIP 07068 is best suited as a cash-flow anchor due to the favorable spread between FMR and market rent, combined with the high median home value that ensures stability and demand. This strategic positioning allows landlords to balance their investments effectively, providing both security and opportunity for increased earnings.
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.