Location: Newark, NJ | Metro: Bergen-Passaic, 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 | $1,630 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,700 |
| 4 Bedrooms | $3,180 |
| 5 Bedrooms | $3,689 |
| 6 Bedrooms | $4,132 |
| 7 Bedrooms | $4,463 |
| 8 Bedrooms | $4,686 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,700 | $616,455 | 0.44% | F |
| 4BR | $3,180 | $734,272 | 0.43% | F |
U.S. Census Bureau data (2024)
ZIP code 07435 is primarily a homeowner-dominated area with only 23.9% of its population renting. This means that the demand for rental properties, especially those accepting Section 8 vouchers, is relatively low. The total population of 2,703 suggests a smaller market for rental properties, limiting the pool of potential Section 8 tenants.
The median household income in ZIP 07435 stands at $145,342, which is notably higher than the average income levels typically associated with Section 8 eligibility. Given the high median income, landlords can expect that the majority of residents do not rely on government assistance for housing. The market rent of $1,996 is a significant portion of the average income, consuming approximately 13.6% of the median household income. This is slightly below the Fair Market Rent (FMR) of $2,090 set for FY 2024, indicating that rents are competitive but still affordable relative to income levels.
Landlords in ZIP 07435 should anticipate a tenant profile that includes individuals and families who may have higher incomes and do not necessarily require rental assistance programs such as Section 8. Those who do use vouchers will likely be a minority among the renting population. The scarcity of voucher users implies that landlords have the flexibility to set higher rental standards and may focus on attracting tenants who can afford market rates without subsidies.
In summary, ZIP 07435 is not ideal for landlords looking to cater exclusively to Section 8 tenants due to its low percentage of renters and high median income. However, for those willing to accept vouchers, the market rent is lower than the FMR, making it a feasible option for some eligible households. Landlords should prepare for a tenant base that generally has stable employment and higher financial capabilities.
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.