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 | $1,960 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,670 |
| 3 Bedrooms | $3,330 |
| 4 Bedrooms | $3,810 |
| 5 Bedrooms | $4,420 |
| 6 Bedrooms | $4,950 |
| 7 Bedrooms | $5,346 |
| 8 Bedrooms | $5,613 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,670 | $574,181 | 0.47% | F |
| 3BR | $3,330 | $714,443 | 0.47% | F |
| 4BR | $3,810 | $964,149 | 0.4% | F |
| 5BR | $4,420 | $1,411,494 | 0.31% | F |
U.S. Census Bureau data (2024)
The market in ZIP 07082, Towaco, NJ, presents a dynamic scenario where the Federal Market Rent (FMR) at $2,870 for fiscal year 2024 exceeds the current market rent of $1,950 as reported by the Census Bureau's American Community Survey. This indicates that there may be upward pressure on rents, suggesting a potential imbalance favoring demand over supply. However, the lack of specific data regarding price-cut share and days on market (DOM) makes it difficult to definitively conclude the supply-demand relationship without additional context.
The median home value in Towaco stands at $851,343. While this figure alone does not provide a complete picture of the market dynamics, it can be inferred that the high median home value might contribute to higher rental rates as homeownership becomes less affordable for some residents. The 6.7% renter share, though seemingly low, points to a significant portion of the population who are likely to remain in the rental market. This could exert long-term pressure on housing availability, particularly if the trend towards higher home values continues, making homeownership increasingly out of reach for many.
In essence, the current snapshot of ZIP 07082 suggests a market where rental demand may be rising, driven by factors such as the high median home value and the federal rent guidelines. Landlords and small-portfolio investors should consider these dynamics when evaluating their investment strategies and rental pricing. The disparity between the FMR and market rent could signal an opportunity for rental increases, but caution is advised due to the limited data on other key indicators such as DOM and price-cut share.
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.