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 | $1,510 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $2,060 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,570 | $455,521 | 0.56% | F |
U.S. Census Bureau data (2024)
The ZIP code 07418 presents several challenges for landlords considering Section 8 investments. Firstly, the tenant turnover rate could be problematic when comparing the market rent, which is currently unavailable, to the Fair Market Rent (FMR) of $1860 set for fiscal year 2024. This discrepancy may lead to higher tenant churn if the market rent exceeds the FMR, making it difficult to maintain consistent cash flow.
Vacancy exposure is another significant concern. The Days on Market (DOM) figure is also not available, which typically indicates how long properties remain vacant before being rented. A prolonged DOM can increase vacancy costs and reduce potential returns. Given the lack of precise data on market conditions, landlords must prepare for possible extended periods of vacancy.
Deferred maintenance poses a substantial risk in ZIP 07418. With a typical home value of $449,810 and a median income of $156,439, homeowners may struggle to keep up with necessary repairs and improvements due to the high cost of living relative to income levels. This could result in higher maintenance costs and lower property values over time, impacting the overall investment.
However, these risks must be weighed against the fact that 0.0% of the population are renters, suggesting a very low renter density. High renter density usually correlates with increased demand for rental properties, particularly those accepting Section 8 vouchers. Despite the lack of high-density renters, the area's characteristics still attract interest in Section 8 housing due to the affordability issues faced by residents.
Verdict: Moderate risk for a first-time Section 8 landlord in ZIP 07418.
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.