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 | $1,890 |
| 1 Bedroom | $2,140 |
| 2 Bedrooms | $2,580 |
| 3 Bedrooms | $3,220 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,580 | $560,390 | 0.46% | F |
| 3BR | $3,220 | $760,401 | 0.42% | F |
| 4BR | $3,680 | $1,013,156 | 0.36% | F |
| 5BR | $4,269 | $1,423,119 | 0.3% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 07076, part of the Scotch Plains, NJ, Newark, NJ HUD Metro FMR Area, does not align perfectly. The Fair Market Rent (FMR) set at $2300 for fiscal year 2024 contrasts with the actual market rent, which stands at $2,060 according to the Census ACS. This discrepancy suggests that landlords may find themselves charging below the FMR if they wish to remain competitive in the market.
Acquisition costs for properties in this area are relatively high, with the median home value sitting at $830,647. However, the lack of available data on days on market (DOM) and the low percentage of homes requiring price cuts (0.2%) indicate a strong seller's market where homes sell quickly without needing to be discounted. This stability can be reassuring for potential investors looking to enter the market.
Tenant demand is present but not overwhelming. With a total population of 24,843, approximately 21.0% of residents are renters. This means that about 5,217 individuals or households are likely seeking rental accommodations. Given the size of the population, it's important to note that the demand for rentals is moderate and not indicative of a highly sought-after rental market.
In summary, while the rent math doesn't favor landlords aiming to meet FMR standards, the area's strong seller's market and moderate tenant demand suggest that acquiring and holding property could still be profitable. Landlords must carefully consider their pricing strategy to balance between market competitiveness and achieving reasonable returns on investment.
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.