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 | $1,500 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,040 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $2,910 |
| 5 Bedrooms | $3,376 |
| 6 Bedrooms | $3,781 |
| 7 Bedrooms | $4,083 |
| 8 Bedrooms | $4,287 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,040 | $362,131 | 0.56% | F |
| 3BR | $2,540 | $434,912 | 0.58% | F |
| 4BR | $2,910 | $472,580 | 0.62% | D |
| 5BR | $3,376 | $539,629 | 0.63% | D |
U.S. Census Bureau data (2024)
Irvington (ZIP 07111) is a dense, primarily residential urban enclave located just west of Newark in Essex County. The neighborhood maintains a distinct, gritty character defined largely by pre-war housing stock and a heavy reliance on public transit, with frequent NJ Transit bus and rail connections offering direct access to Manhattan and Downtown Newark. Local economic activity is anchored by significant presence in logistics and healthcare sectors, with the sprawling New Jersey Institute of Technology (NJIT) and major regional hospital systems serving as key employment hubs accessible via short commutes for residents. The area is currently undergoing mixed revitalization efforts, balancing older industrial corridors with pockets of new residential infill development aimed at attracting young professionals priced out of nearby Hoboken or Jersey City.
From a strictly numerical standpoint, Irvington presents a compelling cash-flow scenario for voucher holders. The FY2024 ZIP-level HUD SAFMR for a 2-bedroom unit is set at $1,630, while Zillow’s estimated market rent (ZORI) sits at $1,972, leaving a positive gap of $342. Looking forward to the FY2026 Fair Market Rent ladder, rates climb significantly to $1,940 for a 2-bedroom, which nearly eliminates the current spread against market rates. Entry costs are relatively moderate compared to the broader region, with a median home value of $415,675 and a specific median 2BR sale price of $353,209. However, investors should note the liquidity risk, as properties sit on the market for a median of 89 days before selling.
The tenant pool here is exceptionally deep, with a renter share of 70.4% indicating a landlord-favored market where ownership is less common than leasing. With a median household income of $61,609, a substantial portion of the working-class population likely qualifies for Housing Choice Vouchers, ensuring a steady stream of Section 8 applicants. Demand is further bolstered by the neighborhood’s walkability and proximity to major transit arteries, though families may be deterred by local school performance; nearby public schools generally hold low ratings on platforms like GreatSchools, suggesting investors will likely cater to single professionals or childless couples rather than long-term family occupants.
The Section 8 verdict for Irvington is strongly bullish on cash flow and occupancy stability. The high renter share combined with a 2BR SAFMR that is currently below market rent ($1,630 vs $1,972) means voucher payments are competitive and often cover the bulk of market-rate costs, minimizing vacancy loss. While the 89-day days-on-market metric signals slower liquidity for sellers, the high demand for rentals ensures that well-maintained, compliant units will find tenants quickly. For small-portfolio investors, the strongest angle is immediate yield—capitalizing on the $342 positive spread and the guaranteed income of the voucher program in a location where renting is the norm.
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.