Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,630 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
U.S. Census Bureau data (2024)
In ZIP code 07077, understanding the economic dynamics of Section 8 vouchers is crucial for landlords and small-portfolio investors. The SAFMR (Section 8 Area Median Rent) for a two-bedroom apartment in this specific ZIP is set at $2030 for fiscal year 2024. However, the local market rent for a similar unit, according to Census ACS data, averages $1,387.
The SAFMR figure represents the maximum amount that the Housing Choice Voucher program will pay for rent. This does not mean that landlords will receive the full $2030; rather, it's the ceiling for what can be charged to a tenant with a voucher. The actual payment received by landlords consists of two parts: the tenant's contribution and the voucher subsidy. Typically, tenants are required to pay 30% of their adjusted income towards rent.
To illustrate, if a tenant has an adjusted income of $1,500 per month, they would contribute $450 (30%) toward the rent. In this scenario, the voucher would cover the remainder up to the SAFMR limit. Therefore, the voucher would pay out $1,580 ($2030 - $450) to the landlord. It's important to note that utility allowances are also factored into the total reimbursement but do not directly affect the rent payment.
The utility allowance is separate and varies based on the number of bedrooms and the location. For ZIP 07077, the utility allowance for a two-bedroom unit is included in the total reimbursement but does not exceed the SAFMR cap. Landlords should be aware that the utility allowance is paid directly to the tenant, reducing their overall contribution to the rent.
Given these specifics, the typical reimbursement gap or surplus in ZIP 07077 for a two-bedroom unit is a surplus of $643 ($2030 - $1,387). This means that landlords can expect to receive a higher payment from the voucher program compared to the average local market rent, providing a financial cushion above typical rental rates.
Data Sources: FMR data from HUD (2027). 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.