Location: Jersey City, NJ | Metro: Jersey City, NJ HUD Metro FMR Area
| 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 |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 07311 for Section 8 purposes, follow this decision tree:
1) Does the Fair Market Rent (FMR) of $3450 clear debt service on a property?
Yes: If the FMR of $3450 is sufficient to cover your debt service, proceed to the next question.
No: Do not invest in this area for Section 8 properties. The FMR does not provide enough income to meet financial obligations.
It Depends: This answer is not applicable since the debt service requirement was left unspecified. Clarify your financial needs and compare them to the FMR.
2) Is the market rent of $3,673 (ZORI) above, at, or below the FMR?
Above: The ZORI of $3,673 is higher than the FMR of $3450. This suggests that market conditions favor higher rents, which could be beneficial for non-Section 8 tenants. However, for Section 8 eligibility, focus on whether the FMR meets your debt service requirements.
At: The ZORI matches the FMR, indicating a balanced market where Section 8 tenants can afford the rent. Ensure that the FMR of $3450 is adequate for your debt service.
Below: Not applicable since the ZORI is above the FMR. Keep in mind that even if the ZORI were below the FMR, Section 8 units must still adhere to the FMR.
3) Are 100.0% renters plus N/A-day Days on Market (DOM) enough demand?
Yes: If the area has 100.0% renters, there is strong demand for rental properties. Combined with an unspecified DOM, this indicates that properties are likely rented quickly. However, ensure that the FMR of $3450 is sufficient to cover your costs before investing.
No: If the DOM is too high, despite having 100.0% renters, it may indicate difficulty in finding tenants who qualify for Section 8. Check local regulations and competition levels before making a decision.
It Depends: This answer applies if the DOM is neither clearly high nor low. Evaluate the balance between the FMR of $3450 and the ZORI of $3,673 against your investment goals and the specific DOM data for properties in 07311.
In conclusion, the key factors for investment in ZIP 07311 for Section 8 properties are the FMR's ability to cover debt service, the comparison between FMR and ZORI, and the demand level indicated by the percentage of renters and DOM. Ensure these elements align with 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.