Location: Middlesex-Somerset-Hunterdon, 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 | $2,530 |
| 1 Bedroom | $2,730 |
| 2 Bedrooms | $3,400 |
| 3 Bedrooms | $4,050 |
| 4 Bedrooms | $4,550 |
| 5 Bedrooms | $5,278 |
| 6 Bedrooms | $5,911 |
| 7 Bedrooms | $6,384 |
| 8 Bedrooms | $6,703 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,050 | $893,942 | 0.45% | F |
| 4BR | $4,550 | $1,120,831 | 0.41% | F |
| 5BR | $5,278 | $1,607,453 | 0.33% | F |
U.S. Census Bureau data (2024)
The market dynamics in ZIP code 07069 reveal a scenario where demand is likely outpacing supply. This inference is drawn from the significant gap between the Fair Market Rent (FMR) at $3270 for zip FY 2024 and the actual market rent reported at $2,738 according to the Census ACS. The discrepancy suggests that rental properties are being valued higher than what they currently command in the market, indicating potential upward pressure on rents as demand increases.
The median home value stands at $1,069,974, which places it in a high-value bracket, further suggesting that homeownership is less affordable, thus pushing more residents towards renting. With a 15.5% renter share, this ZIP code exhibits a moderate dependency on rental housing. However, the concentration of renters signals long-term housing pressure, as these individuals represent a consistent demand for rental units that could intensify over time if homeownership remains out of reach due to high property values.
The absence of specific data regarding price-cut share and days on market (DOM) makes it challenging to pinpoint the exact rate of change, but the overall snapshot indicates a market where rental demand is robust. Landlords and small-portfolio investors should take note of the FMR's higher valuation as an indicator of future potential for rent increases, especially if the trend of increasing demand persists. The current market rent is below the FMR, which could mean there are opportunities for landlords to adjust their pricing upwards, aligning more closely with the fair market value.
In summary, ZIP 07069 presents a market where the affordability of homeownership is limited, leading to a steady reliance on rental housing. The gap between FMR and market rent, coupled with the median home value, points towards a dynamic environment where demand pressures could lead to increased rental rates, making it an attractive area for those investing in rental properties.
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.