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 | $1,680 |
| 1 Bedroom | $1,900 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $2,860 |
| 4 Bedrooms | $3,270 |
| 5 Bedrooms | $3,793 |
| 6 Bedrooms | $4,248 |
| 7 Bedrooms | $4,588 |
| 8 Bedrooms | $4,817 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,290 | $426,069 | 0.54% | F |
| 3BR | $2,860 | $523,947 | 0.55% | F |
| 4BR | $3,270 | $563,417 | 0.58% | F |
| 5BR | $3,793 | $668,400 | 0.57% | F |
U.S. Census Bureau data (2024)
The ZIP code 07205, located in Hillside, New Jersey, presents an interesting scenario for both renters and landlords. The median household income in this area is $99,528, which provides a context for evaluating rental affordability. At a market rate of $3,800 (ZORI), renting in Hillside becomes a significant expense for many households.
To put this into perspective, let's consider the Federal Market Rent (FMR) for the area, which stands at $1,980 for ZIP 07205 in fiscal year 2024. This figure represents the typical voucher payment amount under the Section 8 program. Comparing the FMR to the ZORI, it's evident that there's a substantial gap in rental costs. Households relying on Section 8 vouchers would find it challenging to secure housing at the market rate, as the difference between the two amounts to $1,820 per month.
Given that 32.7% of the population in Hillside are renters, and the total population is 22,349, the affordability gap has direct implications for landlord competition. Landlords who accept Section 8 vouchers might find themselves catering to a different segment of the market compared to those who prefer cash-paying tenants. However, the demand for affordable housing remains high, and landlords who are willing to work with vouchers could attract a steady stream of tenants.
The takeaway for landlords considering whether to accept voucher payments or focus on cash-paying tenants is clear. While cash-paying tenants might offer higher rents, the competition in the affordable housing sector is likely to be less intense. Landlords who choose to accept vouchers should be prepared for a lower rental income but also for a potentially more stable tenancy. Those opting for higher market rates should be aware of the financial strain this places on local renters and the increased competition they face from other landlords aiming for the same demographic.
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.