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 | $1,720 |
| 1 Bedroom | $1,940 |
| 2 Bedrooms | $2,340 |
| 3 Bedrooms | $2,920 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,940 | $228,665 | 0.85% | C |
| 2BR | $2,340 | $351,556 | 0.67% | D |
| 3BR | $2,920 | $437,359 | 0.67% | D |
| 4BR | $3,340 | $553,892 | 0.6% | D |
U.S. Census Bureau data (2024)
The ZIP code 07419, located within the Hamburg, NJ, Newark, NJ HUD Metro FMR Area, can serve as an effective cash-flow anchor within a Section 8 portfolio strategy. The Federal Market Rent (FMR) for fiscal year 2024 in this area is set at $2040, which is significantly higher than the current market rent of $1736. This spread ensures that landlords participating in the Section 8 program will receive a steady, above-market rental income, providing a reliable cash flow.
The median home value in ZIP 07419 is $395,137, indicating a relatively stable housing market. However, the key metric here is the disparity between the FMR and the actual market rents. Landlords who have properties in this area can benefit from the guaranteed higher rental payments through the Section 8 voucher program, which helps mitigate risks associated with vacancy rates and non-payment.
The low 0.1% price-cut share and N/A-day days on market (DOM) suggest that the housing market in 07419 is robust and properties do not typically require significant discounts or extended listing periods to attract tenants. This further supports the idea of using this ZIP as a cash-flow anchor, as landlords can expect their units to be occupied without the need for substantial concessions.
While the renter share stands at 24.8%, and the median income is $100,713, these factors do not outweigh the benefits of the cash-flow stability provided by the FMR. The high median income suggests a strong economic base, but it does not directly influence the decision to use 07419 as a cash-flow anchor given the favorable FMR conditions.
In summary, ZIP 07419 is best suited as a cash-flow anchor in a Section 8 portfolio due to the guaranteed higher rental income ($2040 vs. $1736) and the overall stability of the local housing market. This strategy leverages the HUD's FMR to ensure consistent returns for landlords and small-portfolio investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.