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 | $1,510 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,060 | $406,244 | 0.51% | F |
| 3BR | $2,570 | $521,325 | 0.49% | F |
| 4BR | $2,940 | $565,152 | 0.52% | F |
| 5BR | $3,410 | $631,081 | 0.54% | F |
U.S. Census Bureau data (2024)
The ZIP code 07203, located in Roselle, NJ within the Newark, NJ HUD Metro FMR Area, presents itself as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for FY 2024 is set at $1750, which is significantly lower than the current market rent of $2,393. This creates a substantial spread of $643 per month, allowing landlords to generate positive cash flow while still being within the bounds of what the government will reimburse.
The median home value in 07203 stands at $507,475, making it a relatively stable area. However, the key factor that positions this ZIP code as a cash-flow anchor is the low price-cut share at 0.2%. This indicates that properties in this area do not often require significant discounts to sell, suggesting strong demand and stability in pricing. Additionally, the number of days on market (DOM) is not applicable here, implying that homes typically sell quickly without prolonged exposure on the market.
While the 45.3% renter share and median income of $92,762 might suggest diversification opportunities, the primary appeal of 07203 lies in its ability to serve as a consistent cash-flow generator. The difference between the FMR and market rent ensures that landlords can cover their mortgage payments, property taxes, insurance, and other expenses, while still having a buffer for maintenance and unexpected costs.
In conclusion, ZIP 07203 should be considered as a cash-flow anchor within a Section 8 portfolio strategy due to the favorable spread between FMR and market rent, coupled with a stable and strong housing market. Landlords and small-portfolio investors can rely on this ZIP code to provide steady and predictable returns.
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.