Location: Jersey City, NJ | Metro: Jersey City, 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 | $2,200 |
| 2 Bedrooms | $2,440 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,470 |
| 5 Bedrooms | $4,025 |
| 6 Bedrooms | $4,508 |
| 7 Bedrooms | $4,869 |
| 8 Bedrooms | $5,112 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,200 | $350,050 | 0.63% | D |
| 2BR | $2,440 | $542,949 | 0.45% | F |
| 3BR | $2,960 | $708,394 | 0.42% | F |
U.S. Census Bureau data (2024)
Union City (ZIP 07087) is a dense, urban enclave in Hudson County often characterized by its vibrant mix of residential pre-war walk-ups and bustling commercial corridors along Bergenline Avenue. The neighborhood functions as a critical bedroom community for Manhattan commuters while maintaining a strong local identity rooted in small businesses and cultural institutions. A major stabilizing presence in the area is the Union City Board of Education, which is among the largest employers in the city, alongside various local retail and service sectors that support the high population density. The area is well-served by extensive bus networks offering direct routes to Midtown Manhattan, making it a practical location for working-class renters who prioritize transit accessibility over square footage.
From an investment standpoint, the numbers reveal a challenging spread for voucher holders. The FY2024 HUD SAFMR for a 2-bedroom unit sits at $2,030, while the projected FY2026 full FMR rises slightly to $2,380. However, current market rent data (Zillow ZORI) places the going rate for a 2-bedroom at $2,403. This creates a negative gap of $373 between the current market rent and the FY2024 FMR, widening to a gap of $23 against the future FY2026 FMR. Meanwhile, the median home value is $567,879, and the median 2BR sale price is $528,967, with properties sitting on the market for a median of 76 days, suggesting a moderate pace of turnover that requires careful pricing strategies.
The tenant pool here is extensive, with 80.9% of households renting and a median household income of $64,310. This high renter share, combined with incomes that are tight relative to market rents, naturally drives significant demand for housing assistance programs like Section 8. Families are drawn to the area's walkability and access to public transit, which reduces reliance on car ownership. While specific school performance data is mixed, the sheer density of amenities and the proximity to major employment centers in Jersey City and New York reinforce a consistent, baseline demand for rental units in this price range.
The Section 8 verdict for Union City 07087 leans toward stability rather than immediate cash flow. Because the FY2024 FMR lags behind the $2,403 market rent by $373, investors relying solely on voucher payments may face negative monthly cash flow unless acquisition costs are significantly below the $528,967 median 2BR sale price. However, the high renter concentration and income constraints suggest a durable pipeline of voucher applicants. The strongest investor angle here is banking on long-term tenant retention and the steady, government-backed payments to offset the tight margins, rather than chasing immediate market-rate premiums.
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.