Section 8 Fair Market Rent (FMR) for ZIP 07302 - 2027

Investment Score for ZIP 07302

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$3,690
1 Bedroom	$3,770
2 Bedrooms	$4,190
3 Bedrooms	$5,090
4 Bedrooms	$5,970
5 Bedrooms	$6,925
6 Bedrooms	$7,756
7 Bedrooms	$8,376
8 Bedrooms	$8,795

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$3,770	$669,743	0.56%	F
2BR	$4,190	$997,011	0.42%	F
3BR	$5,090	$1,435,074	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07302 (Jersey City, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 07302 in Jersey City, NJ, is set by HUD for 2026 as follows: - 0 Bedroom: $3610 - 1 Bedroom: $3680 - 2 Bedrooms: $4140 - 3 Bedrooms: $5050 - 4 Bedrooms: $5930 To understand how these figures compare to actual rents, we can look at the Zillow median price for a 2-bedroom unit, which stands at $973,380. The Price-to-FMR ratio for a 2BR unit is 19.6x, indicating that the actual rent is significantly higher than the FMR. This means that voucher holders face severe constraints in finding housing that fits within their budget. For example, a voucher holder with a 2BR voucher would only be able to afford a rent of $4140, whereas the typical market rent for a 2BR unit is much higher. #### Affordability & Renter Profile ZIP code 07302 has a high population density with 56,220 residents, and 76.0% of them are renters. The occupancy rate is also quite high at 92.9%, suggesting a tight rental market. Given the median household income of $175,077, it’s clear that many residents have the financial capacity to pay high rents. However, the 2BR FMR represents only 28.4% of the median income, which implies that a significant portion of the population may struggle to find affordable housing. The high rent-to-income ratio and the tight market conditions indicate that there is a substantial demand for rental properties, but the supply is limited. This makes it challenging for low-income individuals who rely on Section 8 vouchers to find suitable housing. The majority of the population here is likely middle to upper-middle class, with a smaller segment being lower-income residents who need assistance through programs like Section 8. #### Investor Angle From an investor perspective, the ZIP code 07302 presents a mixed picture. While the high median home values and occupancy rates suggest strong demand, the extremely high Price-to-FMR ratio indicates that properties rented at FMR levels will struggle to compete with market rates. For instance, a 2BR unit with a market rent of $973,380 would typically command a monthly rent of around $7,000-$8,000, far above the $4140 FMR. This means that properties rented at FMR levels will likely see very little demand from the broader rental market. Given the high market rents, the investment grade for properties rented at FMR levels would be relatively low. Investors seeking cash flow positive opportunities would likely find it difficult to achieve profitability without relying on market rents. However, if an investor is willing to accept lower returns and focus on the social impact of providing affordable housing, the ZIP code could still be considered a viable option. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high Price-to-FMR ratio, investors should consider focusing on smaller units such as 0BR or 1BR apartments. These units have FMRs of $3610 and $3680 respectively, which might be more competitive in the local rental market compared to larger units. 2. **Target Lower-Income Neighborhoods Within 07302**: While the overall ZIP code is expensive, there might be pockets within the area where rents are slightly more affordable. Investors should conduct a detailed neighborhood analysis to identify areas where rents are closer to the FMR levels. 3. **Consider Mixed-Income Developments**: To balance the need for affordable housing with the realities of the local rental market, investors might explore developing mixed-income buildings. This approach allows for a combination of market-rate units and affordable units, potentially making the project financially feasible while still serving low-income residents. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 07302 is to **Skip**. The extremely high market rents and the tight rental market make it challenging to find properties that can be rented at FMR levels and still attract tenants. Additionally, the high Price-to-FMR ratio suggests that cash flow will likely be negative unless market rents are charged. Therefore, unless the investor is willing to accept lower returns and focus primarily on the social impact, this ZIP code is not recommended for investment in Section 8 properties.

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.