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 | $471,271 | 0.53% | F |
| 4BR | $2,830 | $521,642 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 07112 stands out due to its significant rental population and relatively high median home values compared to income levels. With a total of 29,456 residents, 70.9% of them rent their homes, indicating a strong demand for rental properties. The median income in this area is $58,200, while the median home value is notably higher at $482,763. This disparity suggests that homeownership is less accessible for many residents, further reinforcing the importance of rental properties.
Moving to the specifics of Section 8 voucher economics, the Fair Market Rent (FMR) for ZIP 07112 in fiscal year 2024 is set at $1,670. In contrast, the Zillow Observed Rent Index (ZORI), which reflects market rents, is $2,086. This means that landlords can expect to receive a subsidy of up to $1,670 per month under the Section 8 program, which is significantly lower than the market rate. However, the gap between the FMR and the ZORI also implies that landlords can potentially charge a market rent premium on top of the voucher amount, making this ZIP code an attractive option for those willing to participate in the program.
The data signature for ZIP 07112 reads as stable. The high percentage of renters and the established median home values suggest a consistent housing market. While the difference between FMR and ZORI could indicate some transitional dynamics, the overall economic indicators point towards a steady state. Landlords and small-portfolio investors should consider these factors when evaluating the potential returns and risks associated with Section 8 participation in this ZIP code.
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.