Section 8 Fair Market Rent (FMR) for ZIP 07307 - 2027

Investment Score for ZIP 07307

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	$2,440
1 Bedroom	$2,490
2 Bedrooms	$2,770
3 Bedrooms	$3,370
4 Bedrooms	$3,940
5 Bedrooms	$4,570
6 Bedrooms	$5,118
7 Bedrooms	$5,527
8 Bedrooms	$5,803

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	$2,490	$399,813	0.62%	D
2BR	$2,770	$614,028	0.45%	F
3BR	$3,370	$880,720	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07307 (Jersey City, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 07307 in Jersey City, NJ, for a two-bedroom apartment is set at $2720 per month for 2026. This amount represents 39.2% of the median household income in the area, which stands at $83,297. However, the actual rental market is significantly higher. The Zillow median price for a two-bedroom rental unit is $585,212, which translates to a monthly rent that is approximately 17.9 times the FMR. Given these figures, it is clear that the actual rents far exceed the FMR, creating significant constraints for voucher holders. They would likely struggle to find properties that accept their vouchers due to the high cost of living in the area. #### Affordability & Renter Profile ZIP code 07307 has a population of 42,645, with 64.4% of residents being renters. This indicates a strong demand for rental housing, particularly among individuals who rely on Section 8 vouchers. The occupancy rate of 91.2% suggests that the market is quite tight, with very little vacancy available. The high rent-to-income ratio implies that many renters are already financially stretched, making it difficult for them to afford market-rate rents without assistance. Therefore, the rental market is highly competitive and favors landlords, with limited options for low-income families. #### Investor Angle From an investor perspective, the ZIP code 07307 presents a challenging environment for cash flow positivity when relying solely on FMR. Given that the Zillow median price for a two-bedroom unit is $585,212, the implied monthly rent of $585,212 / 17.9 ≈ $32,700 is far above the FMR of $2720. This means that even if an investor were to rent out a property at the FMR, they would be significantly below the market rate, potentially leading to negative cash flow. The investment grade in this area is likely to be lower due to the high cost of acquisition and the limited pool of potential tenants who can afford the FMR. Investors should consider the long-term stability and appreciation of property values, but the immediate cash flow from Section 8 vouchers alone is unlikely to be sufficient to cover expenses such as mortgage payments, maintenance, and property taxes. #### Specific Actionable Insights 1. **Focus on Multi-Family Properties**: Given the high rent-to-income ratio and the large percentage of renters, multi-family properties might offer better opportunities for positive cash flow. Investors could consider purchasing buildings with multiple units where some units are rented at market rates while others are rented through Section 8 vouchers. This mixed approach could help balance the financial burden. 2. **Target Lower-Income Neighborhoods Within Jersey City**: While ZIP code 07307 itself is expensive, there may be pockets within Jersey City where the cost of living is slightly lower. Investors could explore areas with similar characteristics but lower median home prices, where the FMR might be closer to the actual rents. For example, ZIP codes like 07302 or 07306 might offer more affordable opportunities. 3. **Consider Long-Term Appreciation**: Although immediate cash flow may be challenging, the real estate market in Jersey City has shown steady growth over the years. Investors looking for long-term gains should consider the potential for property value appreciation. They might also benefit from tax incentives and other government programs designed to support affordable housing. #### Bottom Line For Section 8-focused investors, the ZIP code 07307 is not recommended for purchase due to the high cost of living and the significant gap between FMR and actual rents. The immediate cash flow is likely to be negative, and the tight rental market makes it difficult to find suitable tenants. A hold strategy might be appropriate for existing investors who have already acquired properties in this area, but new investors should skip this ZIP code and look for more affordable opportunities within Jersey City or neighboring areas.

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.