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 | $1,950 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,640 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,810 |
| 5 Bedrooms | $4,420 |
| 6 Bedrooms | $4,950 |
| 7 Bedrooms | $5,346 |
| 8 Bedrooms | $5,613 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,280 | $665,334 | 0.49% | F |
| 4BR | $3,810 | $771,654 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 07440 presents a dynamic rental market influenced by its current financial metrics. The Fair Market Rent (FMR) for the area stands at $2090 for the fiscal year 2024, which is notably higher than the reported market rent of $950 based on the Census American Community Survey (ACS) data. This discrepancy suggests that while official guidelines set a higher benchmark, actual market conditions reflect a lower rent, possibly due to competition or economic factors.
The median home value in ZIP 07440 is $677,404, indicating a substantial investment for homeownership. However, the percentage of price-cut share and days on market (DOM) are currently unavailable, leaving some ambiguity regarding the specifics of the housing supply and demand balance. Despite these missing details, the significant gap between the FMR and market rent implies that there might be a situation where supply slightly outpaces demand, as landlords adjust their rents to attract tenants.
The 11.5% renter share provides insight into the long-term housing pressures within the ZIP code. A relatively low renter share could mean that most residents prefer homeownership over renting, which aligns with the high median home value. This preference for homeownership can lead to sustained demand for rental properties as those unable to afford the high cost of homeownership seek alternative living options. The dynamics of this market suggest a steady but cautious environment, where both landlords and small-portfolio investors must carefully consider their pricing strategies to remain competitive and meet the needs of renters.
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.