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 | $2,290 |
| 1 Bedroom | $2,580 |
| 2 Bedrooms | $3,120 |
| 3 Bedrooms | $3,890 |
| 4 Bedrooms | $4,450 |
| 5 Bedrooms | $5,162 |
| 6 Bedrooms | $5,781 |
| 7 Bedrooms | $6,243 |
| 8 Bedrooms | $6,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,120 | $528,202 | 0.59% | F |
| 3BR | $3,890 | $894,926 | 0.43% | F |
| 4BR | $4,450 | $1,173,052 | 0.38% | F |
| 5BR | $5,162 | $1,505,641 | 0.34% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 07079, South Orange, New Jersey, for fiscal year 2024 is set at $2,730. This figure represents the maximum amount the government will pay toward rent for a Section 8 tenant in your property. It's important to note that this is not the actual rent you can charge; it's the reimbursement limit from the housing authority.
To put this into perspective, the local Zillow Rent Index (ZORI) for the same area is currently at $3,242. This means that while the government pays up to $2,730, you have the flexibility to charge slightly higher if market conditions allow. However, the difference should be reasonable, as tenants on Section 8 vouchers must contribute a portion of their income toward rent.
The demand for rentals in this area is robust, with 34.8% of residents being renters. This high percentage indicates a strong potential tenant pool, which is beneficial for landlords looking to fill vacancies quickly. Given the average monthly rent reimbursement of $2,730, you could potentially generate an annual revenue of approximately $1,056,720 if you own a portfolio of properties in this area. This figure assumes a portfolio of ten units, each receiving the maximum FMR reimbursement annually.
Before proceeding with a Section 8 rental, there is one crucial step you must verify: ensure your property meets all the necessary inspection criteria. The housing authority will inspect your property to confirm it complies with health and safety standards. Failure to meet these requirements can result in disqualification from the program, even if you find a qualified tenant.
In summary, the FMR of $2,730 provides a clear benchmark for the government's reimbursement towards rent. With a local ZORI of $3,242 and a significant 34.8% of residents renting, the potential for steady income is promising. Just remember to pass the required inspections to avoid any complications.
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.