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 | $2,150 |
| 1 Bedroom | $2,430 |
| 2 Bedrooms | $2,930 |
| 3 Bedrooms | $3,650 |
| 4 Bedrooms | $4,180 |
| 5 Bedrooms | $4,849 |
| 6 Bedrooms | $5,431 |
| 7 Bedrooms | $5,865 |
| 8 Bedrooms | $6,158 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,930 | $460,332 | 0.64% | D |
| 3BR | $3,650 | $691,653 | 0.53% | F |
| 4BR | $4,180 | $860,640 | 0.49% | F |
| 5BR | $4,849 | $1,042,533 | 0.47% | F |
U.S. Census Bureau data (2024)
Investing in Section 8 properties in ZIP code 07081 in Springfield, NJ, comes with several risks that potential landlords must consider. First, tenant turnover is a significant concern. The market rent in this area is $2,498, while the Fair Market Rent (FMR) for FY 2024 stands at $2,630. This discrepancy can lead to frequent changes in tenants as they seek to maximize their housing benefits, potentially causing disruptions and increased administrative costs.
Vacancy exposure is another issue, as the days on market (DOM) data is currently unavailable. This lack of information makes it difficult to predict how long a property might remain vacant between tenants, which could result in lost rental income. Furthermore, deferred maintenance poses a financial risk due to the relatively high typical home value of $702,092 and the median income of $155,906. Landlords may need to invest in maintaining the property's condition to meet Section 8 requirements, which can be costly and strain cash flow.
However, these risks are tempered by the high renter density in the area. With 33.2% of residents being renters, there is likely a strong demand for housing vouchers. This high renter share suggests that finding and retaining tenants who qualify for Section 8 assistance should be feasible, reducing the overall risk of vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.