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 | $1,540 |
| 1 Bedroom | $1,740 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,620 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,100 | $391,085 | 0.54% | F |
| 3BR | $2,620 | $555,148 | 0.47% | F |
| 4BR | $3,000 | $606,587 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 07204, encompassing Roselle Park and part of Newark in New Jersey's HUD Metro FMR Area, serves well as a cash-flow anchor within a Section 8 portfolio strategy. This classification is based on the significant spread between the Fair Market Rent (FMR) for the fiscal year 2024, which is set at $1800, and the current market rent of $2,568. The difference of $768 per month represents a substantial cushion that landlords can rely on to ensure steady, predictable cash flow.
Despite the lower FMR compared to the market rent, the median home value in the area stands at $537,979, indicating a stable housing market with potential for long-term investment. However, the primary focus for landlords considering Section 8 in this ZIP code should be on the guaranteed income rather than rapid appreciation, as there is no specific percentage given for price-cut shares or days on market (DOM).
The ZIP 07204 also offers an opportunity for diversification, with a renter share of 40.9%, suggesting a moderate demand for rental properties. Additionally, the median income of $109,679 implies a relatively affluent population, which could translate into fewer delinquencies and a more stable tenant base. Yet, the most compelling argument for this ZIP as a cash-flow anchor lies in the financial security it provides through the guaranteed rent payments, coupled with the existing market conditions that allow for a comfortable margin above the FMR.
In summary, ZIP 07204 is best suited as a cash-flow anchor in a Section 8 portfolio due to the favorable rent spread and the stability provided by the HUD-assisted rents, ensuring landlords receive consistent and reliable income without the need for speculative growth plays.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.