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 | $2,100 |
| 1 Bedroom | $2,370 |
| 2 Bedrooms | $2,860 |
| 3 Bedrooms | $3,570 |
| 4 Bedrooms | $4,080 |
| 5 Bedrooms | $4,733 |
| 6 Bedrooms | $5,301 |
| 7 Bedrooms | $5,725 |
| 8 Bedrooms | $6,011 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,370 | $328,717 | 0.72% | D |
| 2BR | $2,860 | $458,631 | 0.62% | D |
| 3BR | $3,570 | $711,758 | 0.5% | F |
| 4BR | $4,080 | $896,613 | 0.46% | F |
U.S. Census Bureau data (2024)
The median income in ZIP 07444, Pompton Plains, NJ, stands at $117,959. This figure places most households in a position where they can afford the market rate rent of $3,129, according to Census ACS data. However, the reality is more nuanced when considering the Federal Market Rent (FMR) standards set for voucher payments in the fiscal year 2024, which is $2,470.
The disparity between the market rate and the voucher payment amounts to a significant affordability gap. A household earning the median income could comfortably pay the market rate without financial strain. However, for those relying on vouchers, the difference means that they might struggle to find landlords willing to accept the lower payment, especially if they have preferences for higher-paying tenants.
Pompton Plains has a rental population of 10,971, with 18.8% of the total population being renters. Given the relatively high median income and the market rate, there is a competitive landscape for landlords. Those who accept vouchers might find themselves with fewer options, as the FMR is significantly below the market rate. Conversely, landlords who focus on cash-paying tenants can likely command the higher rents reflective of the area's economic status.
The takeaway for landlords is clear: accepting vouchers comes with accepting lower rental rates. In ZIP 07444, where the market rate is $3,129 and the voucher rate is $2,470, the choice should be informed by the demand for affordable housing versus the availability of higher-paying tenants. Landlords aiming to maximize their rental income should consider the robustness of the local economy and the preference of potential tenants for properties that offer amenities and qualities justifying the higher cost. For those willing to engage with the government voucher system, it represents a stable but less lucrative option.
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.