Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,460 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
U.S. Census Bureau data (2024)
The ZIP code 07102 stands out in Essex County, New Jersey, due to its unique demographic and economic characteristics. With a population of 12,358 residents, it has an exceptionally high rental rate of 94.0%, indicating that nearly all residents are tenants rather than homeowners. Despite this, the median income in the area is relatively low at $38,864, which contrasts sharply with the median home value of $405,348. This suggests a significant disparity between local incomes and housing costs, making affordable rental options particularly important.
The voucher economics in ZIP 07102 play a crucial role in the rental market. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $1,660. This is notably lower than the market rent, measured by Zillow's Observed Rental Index (ZORI), which is $2,499. Landlords who accept Section 8 vouchers can expect to receive a fixed payment of $1,660 per month, which is significantly less than the average market rent. However, this can still be a viable option for maintaining occupancy rates in a highly rented area where many residents rely on government assistance to cover housing costs.
The data signature for ZIP 07102 reads as stable. The high rental rate and low median income suggest a consistent demand for subsidized housing, making Section 8 vouchers a reliable source of steady income for landlords. Given the substantial gap between the FMR and market rent, landlords have the opportunity to charge higher rents to non-voucher tenants, balancing their portfolio and ensuring profitability. Small-portfolio investors should consider the long-term stability of this ZIP code when deciding whether to accept Section 8 vouchers or cater to the broader market.
Data Sources: FMR data from HUD (2027). 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.