Section 8 Fair Market Rent (FMR) for ZIP 07206 - 2027
Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area
FY 2027 Fair Market Rent Rates
| Unit Size |
Monthly FMR |
| Studio | $1,550 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,120 |
| 3 Bedrooms | $2,640 |
| 4 Bedrooms | $3,030 |
| 5 Bedrooms | $3,515 |
| 6 Bedrooms | $3,937 |
| 7 Bedrooms | $4,252 |
| 8 Bedrooms | $4,465 |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$68,420
Housing Authorities Serving ZIP 07206
When considering whether to purchase a property in ZIP code 07206 for Section 8 investment, follow these steps:
- Does FMR $1600 clear debt service on a $504,083 property?
- Yes. The Fair Market Rent (FMR) of $1600 for ZIP 07206 in fiscal year 2024 is sufficient to cover the debt service on a property valued at $504,083. This indicates that the rental income will meet the mortgage obligations, making it financially viable.
- No. If the FMR of $1600 does not cover the debt service on a property worth $504,083, then purchasing for Section 8 is not advisable. The rental income would be insufficient to meet financial obligations.
- Is market rent $2,374 (ZORI) above, at, or below FMR?
- Above. With a Zillow Observed Rental Index (ZORI) of $2,374, which is higher than the FMR of $1600, landlords can expect to receive higher rents outside of Section 8. This suggests that the area is desirable and has strong rental demand, but the difference between market rent and FMR must be considered against the potential restrictions and management requirements of Section 8.
- At. If the ZORI equals the FMR, the market conditions align closely with what Section 8 tenants can afford. This scenario could still be profitable if the landlord is willing to manage Section 8 properties, but there's less room for flexibility in pricing.
- Below. If the ZORI were below the FMR, it would indicate an anomaly in the data since the FMR sets the maximum allowable rent for Section 8. Given the ZORI is above FMR, this branch does not apply to ZIP 07206.
- Are 75.9% renters + N/A-day DOM enough demand?
- It depends. ZIP 07206 has a high percentage of renters at 75.9%, indicating strong demand for rental properties. However, the Days on Market (DOM) being listed as 'N/A' means we lack critical information about how quickly properties are rented out. A low DOM suggests fast turnover, which is positive, while a high DOM might indicate difficulty in finding tenants. Without this data, you cannot fully assess the demand. Consider investigating further into local rental trends and vacancy rates to make a more informed decision.
In summary, ZIP 07206 offers a favorable environment for Section 8 investments based on the FMR covering debt service and the high percentage of renters. However, the lack of DOM data makes it difficult to conclusively determine the strength of demand. Conduct additional research to ensure the area meets your investment criteria.
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.