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 | $2,240 |
| 1 Bedroom | $2,540 |
| 2 Bedrooms | $3,060 |
| 3 Bedrooms | $3,820 |
| 4 Bedrooms | $4,370 |
| 5 Bedrooms | $5,069 |
| 6 Bedrooms | $5,677 |
| 7 Bedrooms | $6,131 |
| 8 Bedrooms | $6,438 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,060 | $636,812 | 0.48% | F |
| 3BR | $3,820 | $1,013,321 | 0.38% | F |
| 4BR | $4,370 | $1,406,284 | 0.31% | F |
| 5BR | $5,069 | $1,967,208 | 0.26% | F |
U.S. Census Bureau data (2024)
2550 is the Fair Market Rent (FMR) for ZIP 07090 in Westfield, NJ, for fiscal year 2024, indicating the maximum amount a Section 8 tenant can pay for housing. However, the actual market rent, as measured by the Zillow Observed Rental Index (ZORI), stands at 2745, suggesting landlords might need to adjust their expectations slightly downward to attract Section 8 tenants. The median home value in this area is 1270834, reflecting a robust real estate market that could offer strong investment opportunities. With a renter share of 18.9%, there is a notable portion of the population leasing properties, which presents an opportunity for landlords to cater to this demographic. The median income in ZIP 07090 is 232629, providing insight into the financial capacity of potential tenants. A 9-day DOM (Days on Market) indicates that properties are moving quickly once listed, a sign of a healthy rental market. Lastly, a mere 0.1% of listings required price cuts, underscoring the stability and demand in the local rental market.
Based on these figures, landlords and small-portfolio investors in ZIP 07090 should consider setting their rents just below the ZORI to remain competitive while still being mindful of the Section 8 FMR. The high median home value suggests a wealthier neighborhood where the demand for quality rentals is likely strong. Given the low percentage of price-cut shares and quick DOM, it's evident that the market favors well-maintained and priced properties. Therefore, the Section 8 program can be a viable option for landlords willing to work within the stipulated guidelines, ensuring steady tenancy and a reliable source of income. In conclusion, for ZIP 07090, Section 8 remains a stable and potentially lucrative choice for landlords and investors alike.
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.