Section 8 Fair Market Rent (FMR) for ZIP 07083 - 2027

Investment Score for ZIP 07083

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,000
1 Bedroom	$2,260
2 Bedrooms	$2,730
3 Bedrooms	$3,400
4 Bedrooms	$3,900
5 Bedrooms	$4,524
6 Bedrooms	$5,067
7 Bedrooms	$5,472
8 Bedrooms	$5,746

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,730	$453,138	0.6%	D
3BR	$3,400	$604,137	0.56%	F
4BR	$3,900	$654,661	0.6%	F
5BR	$4,524	$722,419	0.63%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Market Analysis for ZIP Code 07083 (Union, NJ) The ZIP code 07083, located in Union, NJ, is part of Union County and has a population of 58,170 residents. The median household income in this area is notably high at $121,887, which places it among the higher-income brackets in New Jersey. With a renter percentage of 27.3%, Union, NJ is primarily a homeowner-dominated market, but there is still a significant portion of the population that relies on rental housing. The occupancy rate of 96.7% suggests that the rental market is quite tight, with very little vacancy available. ### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for 2026 in ZIP 07083 is as follows: - 0BR: $1930 - 1BR: $2180 - 2BR: $2640 (which represents 26.0% of the median income) - 3BR: $3310 - 4BR: $3760 These figures represent the maximum amount that a Section 8 voucher holder can pay for rent based on the size of their unit. However, the actual rents in the area are significantly higher. For instance, the Zillow median price for a 2BR unit is $456,171, which translates to a monthly rent of approximately $3800 if we assume a typical rent-to-price ratio of 0.8%. This means that the actual rents are about 14.4 times higher than the FMR, making it extremely challenging for voucher holders to find suitable housing within their budget. ### Affordability & Renter Profile Given the high median household income and the relatively low percentage of renters, those who do rent in Union, NJ likely have above-average incomes themselves. The tight market conditions indicate that there is a strong demand for rental units, but the supply is limited. This makes it difficult for lower-income individuals, particularly those relying on Section 8 vouchers, to secure affordable housing. The high price-to-FMR ratio of 14.4x further underscores the affordability challenges faced by renters. ### Investor Angle From an investor perspective, the FMR levels are far below the actual market rents. For example, a 2BR unit with an FMR of $2640 would typically rent for around $3800 in the open market. This discrepancy provides a potential opportunity for positive cash flow if the property can be rented to non-voucher tenants. However, the challenge lies in finding properties where the rent is within the FMR range for Section 8 voucher holders. To determine the investment grade, we need to consider the cost of acquisition and the potential rental income. Given the high median home values and the tight market, the cost of acquiring a rental property will be substantial. Assuming a typical cap rate of 5% for the area, a 2BR property priced at $456,171 would generate a net operating income (NOI) of approximately $22,809 per year, or $1901 per month. This is just slightly above the FMR for a 2BR unit, indicating that the market is marginally favorable for investors looking to maximize returns through market-rate rentals. ### Specific Actionable Insights 1. **Focus on Non-Voucher Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting non-voucher tenants who can afford market rates. A 2BR unit priced at $456,171 would realistically rent for around $3800 per month, providing a much better return on investment compared to renting to voucher holders. 2. **Consider Smaller Units**: If targeting Section 8 voucher holders, smaller units such as 0BR or 1BR might be more feasible. These units have FMRs of $1930 and $2180 respectively, which are closer to the actual market rents for these sizes. Investors could look into converting larger units into smaller ones to cater to this demographic. 3. **Evaluate Location-Specific Opportunities**: While the overall market is tight, certain neighborhoods within Union, NJ might offer more affordable options. Investors should conduct a thorough neighborhood-by-neighborhood analysis to identify areas where rents are closer to the FMR levels. ### Bottom Line For Section 8-focused investors, the recommendation is to **skip** this ZIP code due to the extremely high price-to-FMR ratio and the limited availability of affordable units. The tight market and high median home values make it challenging to find properties that can be rented out at FMR levels. Instead, investors should consider other ZIP codes with more favorable price-to-FMR ratios and greater availability of affordable units. If investors are willing to target non-voucher tenants, then this ZIP code could be considered for investment, but they should be prepared for higher acquisition costs and competition in the rental market.

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.