Location: Monmouth-Ocean, NJ | Metro: Monmouth-Ocean, 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 | $2,500 |
| 1 Bedroom | $2,770 |
| 2 Bedrooms | $3,420 |
| 3 Bedrooms | $4,390 |
| 4 Bedrooms | $4,860 |
| 5 Bedrooms | $5,638 |
| 6 Bedrooms | $6,315 |
| 7 Bedrooms | $6,820 |
| 8 Bedrooms | $7,161 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,420 | $830,267 | 0.41% | F |
| 3BR | $4,390 | $892,178 | 0.49% | F |
| 4BR | $4,860 | $1,216,248 | 0.4% | F |
| 5BR | $5,638 | $1,582,813 | 0.36% | F |
U.S. Census Bureau data (2024)
The potential risks for investing in Section 8 housing in ZIP code 07702, Shrewsbury, NJ, are significant. Tenant turnover is a critical issue, with the market rent at $3,472 compared to the Federal Market Rent (FMR) of $2,870 for FY 2024. This discrepancy suggests that landlords might struggle to retain tenants who are accustomed to the higher market rents. Additionally, the vacancy exposure is substantial due to the lack of data on days on market (DOM), indicating uncertainty in how quickly units can be filled. The deferred maintenance exposure is another concern, considering the typical home value of $940,419 and the median income of $178,958. Landlords must be prepared for the possibility of higher-than-average maintenance costs, as lower-income residents might not have the means to keep up with the upkeep of such valuable properties.
However, these risks are somewhat mitigated by the high renter share of 14.2%. A high concentration of renters often translates into a robust demand for rental vouchers, which can help stabilize occupancy rates. The presence of many renters also implies a steady stream of potential Section 8 tenants, reducing the likelihood of prolonged vacancies.
In conclusion, the overall risk for a first-time Section 8 landlord in ZIP code 07702 is moderate.
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.