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 | $1,640 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,490 | $451,313 | 0.55% | F |
| 4BR | $2,830 | $483,860 | 0.58% | F |
U.S. Census Bureau data (2024)
ZIP code 07106 is predominantly a renter-heavy area, with 64.6% of its population renting homes. This high percentage indicates a significant demand for rental properties, particularly those that can accommodate Section 8 tenants. The total population stands at 36,383, providing a robust base of potential renters.
The median household income in 07106 is $53,440. In comparison to the market rent of $2,110, typical rent consumes approximately 49% of the local median income. This figure highlights the financial strain many renters face, suggesting a strong reliance on rental assistance programs such as Section 8 vouchers.
Section 8 Fair Market Rent (FMR) for FY 2024 is set at $1,550, which is significantly lower than the current market rent. Landlords in 07106 should be prepared to accept a rent that is closer to the FMR if they wish to attract Section 8 tenants. The difference between the FMR and market rent ($560) underscores the challenge of finding affordable housing for low-income families in this area.
In summary, landlords in ZIP 07106 should expect a tenant pool that heavily relies on rental assistance due to the high cost of living relative to income levels. The typical tenant will likely have an annual income around $53,440 and will seek properties within the $1,550 FMR range. Given the scarcity of affordable units, competition for these vouchers will be fierce, making it essential for landlords to understand the local rental market dynamics and the needs of their prospective tenants.
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.