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 | $499,291 | 0.5% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 07201 is set at $1,650 for the fiscal year 2024. This figure represents the maximum amount that a landlord can charge for rent under the Section 8 program. It's important to note that this is not the actual rent you would receive; it's the benchmark used by the government to determine the subsidy amount.
In comparison, the local Zillow Observed Rental Index (ZORI) for the same area stands at $2,340. This indicates that the average market rent is significantly higher than the Section 8 FMR. Therefore, if you're considering a Section 8 rental, you should be prepared to accept a lower rent compared to the market rate.
The 80.2% renter share suggests that there is a strong demand for rentals in 07201. This high percentage means that a large portion of the population in this area is renting, which could translate into a steady stream of potential tenants interested in Section 8 housing. However, it also implies that competition for tenants might be fierce, especially among those who qualify for Section 8 assistance.
If you're looking to acquire a property in this ZIP code, the median home value is approximately $499,693. This figure gives you an idea of the investment required to purchase a property suitable for Section 8 tenancy. Keep in mind that the FMR will not cover the full cost of owning a home at this price point, so you must consider other factors such as maintenance costs, insurance, and property taxes.
Before proceeding with your first Section 8 rental, it is crucial to verify that the property meets all the necessary requirements set by the Housing Authority. This includes ensuring that the unit passes a thorough inspection for health and safety standards. Failure to meet these criteria can result in penalties or disqualification from the program.
In summary, the FMR of $1,650 is the ceiling for rent under Section 8, while the local market rent is $2,340. The high renter share of 80.2% points to a robust demand for rental properties. With a median home value of $499,693, you'll need to ensure that your investment aligns with the income generated by a Section 8 rental. Lastly, confirming compliance with the Housing Authority's standards is essential before signing up for the program.
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.