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 | $1,470 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,860 |
| 5 Bedrooms | $3,318 |
| 6 Bedrooms | $3,716 |
| 7 Bedrooms | $4,013 |
| 8 Bedrooms | $4,214 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,490 | $439,624 | 0.57% | F |
U.S. Census Bureau data (2024)
A landlord considering investing in ZIP code 07439 for Section 8 properties must follow a structured decision-making process. The first step is to evaluate whether the Fair Market Rent (FMR) of $2,170 can cover the debt service on a property valued at $421,678. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Assuming an average debt service of approximately $1,800 per month for such a property, the FMR does indeed exceed this amount, indicating that the answer to the first question is yes.
The second question to consider is how the market rent of $1,445 compares to the FMR. In ZIP 07439, the market rent is below the FMR, which suggests that landlords might be able to charge closer to the FMR for Section 8 tenants. This comparison shows that market rent is below FMR, leading to the conclusion that there is potential to increase rental income by participating in the Section 8 program.
The third and final question involves assessing the demand for rental properties in ZIP 07439. According to the available data, 10.4% of the population are renters. However, the data does not provide a figure for the number of days on the market (DOM), which is crucial for understanding the speed at which properties are rented out. Without a specific DOM figure, we cannot definitively say whether the demand is sufficient. Therefore, the answer to the third question is it depends.
If the landlord concludes that the FMR sufficiently covers the debt service and that the market rent is below the FMR, they should then investigate the local rental market dynamics. Specifically, they need to determine if the rental demand is robust enough to ensure a steady stream of Section 8 tenants. A high percentage of renters combined with a low DOM would indicate strong demand, whereas a low percentage of renters or a high DOM would suggest otherwise.
In summary, based on the provided data, a landlord should proceed with buying in ZIP 07439 for Section 8 if they can confirm that the rental market has sufficient demand to support their investment. The financial metrics suggest favorable conditions, but local market specifics will ultimately dictate success.
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.