Location: Jersey City, NJ | Metro: Jersey City, 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 | $2,170 |
| 1 Bedroom | $2,210 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,500 |
| 5 Bedrooms | $4,060 |
| 6 Bedrooms | $4,547 |
| 7 Bedrooms | $4,911 |
| 8 Bedrooms | $5,157 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,210 | $338,284 | 0.65% | D |
| 2BR | $2,460 | $491,247 | 0.5% | F |
| 3BR | $2,990 | $558,160 | 0.54% | F |
| 4BR | $3,500 | $603,811 | 0.58% | F |
U.S. Census Bureau data (2024)
Jersey City’s 07305 zip code, primarily encompassing the Greenville neighborhood, offers a dense urban environment distinct from the high-rises near the Hudson River waterfront. This area is characterized by a diverse mix of pre-war apartment buildings and two-family homes, creating a stable residential feel. It benefits from proximity to major transit hubs, including the Journal Square PATH station, which facilitates rapid access to Manhattan. A key local institution contributing to the area’s stability and identity is the Jersey City Medical Center, a significant employer located just north of the neighborhood.
From a financial perspective, the 07305 market presents a clear arbitrage opportunity for voucher holders. The FY2026 Fair Market Rent (FMR) for a 2-bedroom unit is $2,340, while current market rents (Zillow ZORI) sit at $2,329, creating a tight gap of just $11. However, investors should note the capital entry point: the median home value is $526,785, and median 2BR sales are $484,254. With properties moving at a median pace of 64 days on market, the asset class is liquid but commands a premium price relative to the rent ceiling.
Demand fundamentals are strong here, supported by a 60.0% renter share and a median household income of $76,527. This income level suggests that while many residents can afford market rates, there is a substantial portion of the population for whom the $2,340 FMR provides necessary housing stability. Local amenities, such as the revitalized Lincoln Park and proximity to top-rated local schools, enhance the neighborhood’s appeal for long-term tenants, reducing turnover risk for landlords.
The Section 8 verdict for 07305 is a play on stability and asset preservation rather than aggressive cash-flow maximization. Because the market rent is nearly equal to the FMR limit, investors cannot rely on inflated voucher payments to boost yields. Instead, the strength lies in the area's high renter density and institutional employment base, which ensure consistent occupancy. The data suggests this is a hold-and-maintain market where the guarantee of government payments mitigates vacancy risk in an otherwise high-cost real estate environment.
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.