Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
The ZIP code 07114 presents an interesting scenario for both renters and landlords alike. The median income here stands at $36,019, which is notably lower than the market rate rent of $1,929 per month (ZORI). This stark difference highlights a significant affordability gap for residents, making it challenging for many households to secure housing without financial assistance.
However, the situation is somewhat alleviated by the Housing Choice Voucher Program, where the Fair Market Rent (FMR) is set at $1,700 for the fiscal year 2024. This amount is more aligned with the average household's earning capacity, providing a realistic benchmark for subsidized rents. For context, the ZORI is $1,929, whereas the FMR is $1,700, indicating a $229 disparity between market rates and government-subsidized rates.
Given that 79.7% of the population in ZIP 07114 are renters, and the total population is 13,670, there is a high concentration of individuals seeking rental properties. This high demand naturally leads to increased competition among landlords to attract tenants. Those willing to accept vouchers will have access to a larger pool of potential tenants who rely on subsidies to meet their housing needs.
The takeaway for landlords considering their strategy is clear: accepting vouchers can provide a competitive edge in a market where many renters cannot afford the ZORI. While the FMR is lower than the market rate, it ensures steady and timely payments backed by the government, reducing the risk of non-payment. Landlords should weigh the benefits of a guaranteed tenant against the slightly reduced rental income when deciding on their approach.
Data Sources: FMR data from HUD (2027). 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.