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 | $462,737 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 07108, located in Newark, NJ, plays a pivotal role within a Section 8 portfolio strategy as a cash-flow anchor. This designation is based on the significant spread between the Fair Market Rent (FMR) set by the U.S. Department of Housing and Urban Development (HUD) and the actual market rents. For fiscal year 2024, the HUD's FMR for ZIP 07108 is $1750, whereas the market rent averages at $2,079. This gap means that landlords participating in the Section 8 program can expect steady, government-backed rental income that is lower than the market rate but still reliable and consistent.
Beyond the rental income, the median home value in ZIP 07108 stands at $492,243, which underscores the potential for property appreciation over time. However, given the low 0.1% price-cut share and an unreported number of days on market (DOM), it suggests that the housing market in this area is relatively stable, with little need for aggressive pricing adjustments to attract buyers. This stability further reinforces the cash-flow anchor role, as it indicates a market where properties are likely to hold their value without significant fluctuations.
The high renter share of 81.0% and a median income of $36,200 in ZIP 07108 also support the cash-flow anchor classification. These figures suggest a robust demand for rental properties, particularly those that cater to lower-income tenants who are eligible for Section 8 assistance. The high proportion of renters implies a steady stream of potential tenants, while the median income figure aligns well with the eligibility criteria for Section 8 subsidies, ensuring a continuous supply of qualified applicants.
In summary, ZIP 07108 serves as a cash-flow anchor within a Section 8 portfolio strategy due to the substantial difference between the HUD's FMR and the market rent, the stable housing market conditions, and the alignment of local demographics with Section 8 requirements. Landlords and small-portfolio investors should consider this ZIP code as a secure component of their investment mix, providing predictable income and long-term asset stability.
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.