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 | $1,460 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,840 |
| 5 Bedrooms | $3,294 |
| 6 Bedrooms | $3,689 |
| 7 Bedrooms | $3,984 |
| 8 Bedrooms | $4,183 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $363,994 | 0.55% | F |
| 3BR | $2,490 | $423,056 | 0.59% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 07103, Newark, NJ, in fiscal year 2024 is set at $1590. This figure represents the maximum amount that the U.S. Department of Housing and Urban Development (HUD) will pay landlords who participate in the Section 8 program. It's important to note that this is not the rent you can charge your tenants; it's the payment standard HUD uses to determine the subsidy amount.
In comparison, the local market rent in ZIP 07103 is currently at $2,156, according to the Zillow Rent Index (ZORI). This means that the typical rent charged for a property in this area is higher than the FMR. However, the Section 8 program limits the rent to the FMR plus any additional amount the tenant can afford, which typically does not exceed 40% of their income.
The demand for rental properties in ZIP 07103 is robust, with 75.4% of residents being renters. This high percentage indicates a strong need for affordable housing options, making it a viable market for Section 8 rentals. The median home value in this area is around $392,619, suggesting that buying a property here could be a significant investment.
Before proceeding with your first Section 8 rental in ZIP 07103, ensure you verify the physical condition of the property against HUD’s Housing Quality Standards (HQS). These standards are essential because the property must pass an inspection to qualify for the program. Ignoring this step can lead to delays or disqualification.
To summarize, while the FMR of $1590 sets a limit on the subsidy you can receive, the local market rent of $2,156 shows that there is potential for higher rents outside the program. With a high renter share and substantial property values, ZIP 07103 presents both challenges and opportunities for landlords. The key to success is ensuring your property meets all necessary standards before applying.
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.