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 | $2,050 |
| 1 Bedroom | $2,310 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,480 |
| 4 Bedrooms | $3,980 |
| 5 Bedrooms | $4,617 |
| 6 Bedrooms | $5,171 |
| 7 Bedrooms | $5,585 |
| 8 Bedrooms | $5,864 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,480 | $508,978 | 0.68% | D |
U.S. Census Bureau data (2024)
49.5% of residents in ZIP code 07088 are renters, indicating a strong demand for rental properties in the area. The Fair Market Rent (FMR) for the zip code, as of fiscal year 2024, is set at $2270, which is notably lower than the actual market rent of $2,900 (ZORI). This gap suggests an opportunity for landlords who can offer quality housing at or near the FMR rate, potentially attracting Section 8 tenants. The median home value stands at $460,535, reflecting a relatively stable housing market. However, the median income of $93,240 may limit the financial capacity of some potential tenants to afford higher rents, making the Section 8 program an attractive option for both landlords and tenants. Given the lack of specific data on days on market (DOM) and price-cut share, it's challenging to assess the speed and flexibility of the local real estate transactions. Nonetheless, the significant difference between the FMR and ZORI, combined with the high renter share, points towards a viable Section 8 market. Landlords in ZIP 07088 should consider participating in the Section 8 program to tap into this demand, ensuring they meet the required standards for property condition and rent pricing.
Section 8 verdict: A favorable environment for landlords willing to comply with program requirements.
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.