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 | $1,560 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $3,040 |
| 5 Bedrooms | $3,526 |
| 6 Bedrooms | $3,949 |
| 7 Bedrooms | $4,265 |
| 8 Bedrooms | $4,478 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,660 | $571,797 | 0.47% | F |
| 4BR | $3,040 | $630,934 | 0.48% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 07208, part of the Newark, NJ HUD Metro FMR Area, does not align favorably. The Fair Market Rent (FMR) for the area as of fiscal year 2024 is set at $1780. However, the actual market rent, according to Census ACS data, stands at $1400. This discrepancy suggests that landlords might struggle to justify higher rents based on government guidelines, potentially leading to lower occupancy rates if they cannot adjust their pricing to match the market.
Regarding acquisition affordability, the median home value in ZIP 07208 is $572,750. Given the lack of data on days on market (DOM) and the fact that only 0.1% of listings experience price cuts, it appears that homes are selling quickly without significant discounts. This indicates a competitive market for property acquisitions, where landlords and small-portfolio investors must act swiftly to secure deals. However, the high median home value could be a barrier for some investors looking to enter the market, especially those with limited capital.
Tenant demand in ZIP 07208 is strong. With a total population of 31,937 and a renter share of 72.0%, there is a robust pool of potential tenants. Landlords can leverage this high demand to maintain occupancy levels, though they should be prepared to offer competitive rental rates to attract and retain tenants.
In summary, while tenant demand is robust, the mismatch between the Fair Market Rent and the actual market rent poses challenges for landlords. Additionally, the high median home value and quick sales suggest that acquiring properties will require strategic planning and sufficient capital. Investors should carefully consider these factors before entering the ZIP 07208 market.
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.