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 | $1,460 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $313,637 | 0.63% | D |
| 3BR | $2,490 | $401,442 | 0.62% | D |
| 4BR | $2,830 | $517,049 | 0.55% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP 07416 (Franklin, NJ) in FY 2024 is set at $1,550 for a single-bedroom unit. However, the Census ACS data indicates a market rent of $1,381, which suggests that voucher tenants will cashflow at the FMR level. This means that landlords can expect a positive cash flow when renting to Section 8 tenants, without needing to rely on premium units.
The median home value in Franklin, NJ is $370,477. Using the 2-bedroom FMR of $2,205, the rent-to-price ratio is approximately 0.006. This ratio indicates that the rental income is modest compared to the purchase price, but still provides a steady stream of income for investors.
The data does not provide a median Days on Market (DOM) or a percentage of price cuts. However, given the alignment between FMR and market rents for larger unit sizes, it is clear that the rent-vs-buy dynamics favor investors looking for stable cash flows rather than rapid appreciation.
The strongest investor angle in Franklin, NJ is stability. With FMRs closely aligned with market rents, investors can expect consistent cash flows and minimal risk of vacancy. This makes the area particularly attractive for those seeking long-term, reliable investments.
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.