Section 8 Fair Market Rent (FMR) for ZIP 07086 - 2027

Location: Jersey City, NJ | Metro: Jersey City, NJ HUD Metro FMR Area

Investment Score for ZIP 07086

F
Monthly Rent (2BR)
$3,750
Median Price (2BR)
$758,643
1% Rule
0.49%
Annual Yield
5.93%

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$3,310
1 Bedroom$3,380
2 Bedrooms$3,750
3 Bedrooms$4,560
4 Bedrooms$5,340
5 Bedrooms$6,194
6 Bedrooms$6,937
7 Bedrooms$7,492
8 Bedrooms$7,867

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
1BR $3,380 $491,831 0.69% D
2BR $3,750 $758,643 0.49% F
3BR $4,560 $1,214,856 0.38% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
17,295
Median Household Income
$127,763
Housing Units
9,563
Renter Percentage
69.6%
Occupancy Rate
89.8%
Renter Occupied
5,978

Weehawken, NJ, specifically ZIP code 07086, is a densely populated urban neighborhood with a significant rental market presence. The area hosts a total population of 17,295 residents, of which 69.6% are renters, indicating a strong demand for rental properties. Despite the high proportion of renters, the median household income stands at $127,763, reflecting a relatively affluent community. This affluence is further supported by the median home value of $857,907, suggesting that homeownership is a luxury reserved for those with considerable financial means.

The rental economics of 07086 present an interesting contrast. According to the Fair Market Rent (FMR) set by HUD for the fiscal year 2024, the average monthly rent for a voucher holder is $2,550. However, the actual market rent, measured by Zillow's ZORI index, is significantly higher at $3,736 per month. This substantial gap between the FMR and the market rent highlights the potential profitability for landlords and small-portfolio investors who can manage properties effectively to cater to both voucher recipients and market-rate tenants.

Given these economic conditions, ZIP 07086 would likely appeal to a hands-on value-add buyer rather than a hands-off voucher operator. The disparity between FMR and market rents suggests opportunities for investors willing to improve property quality and amenities to attract higher-paying tenants. Additionally, the high median income and median home values indicate a robust local economy where demand for better living standards exists, making value-add strategies particularly viable. For those looking to operate purely on vouchers, the area may pose challenges due to the limited coverage of the FMR compared to the actual cost of living, necessitating careful management to ensure profitability and tenant satisfaction.

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.