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 | $1,690 |
| 1 Bedroom | $1,870 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,960 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,870 | $474,289 | 0.39% | F |
| 2BR | $2,310 | $628,253 | 0.37% | F |
| 3BR | $2,960 | $749,605 | 0.39% | F |
| 4BR | $3,280 | $1,000,043 | 0.33% | F |
| 5BR | $3,805 | $1,199,664 | 0.32% | F |
U.S. Census Bureau data (2024)
ZIP code 07712, located in Ocean, NJ, is situated within the larger Monmouth-Ocean, NJ HUD Metro FMR Area. Its Fair Market Rent (FMR) for fiscal year 2024 is set at $1870, which is lower than the average market rent of $2,615. This indicates that the area is likely more affordable for low-income renters who qualify for Section 8 assistance. The median home value in ZIP 07712 stands at $737,176, suggesting that it is not among the most expensive neighborhoods in the metro but also not the least expensive. With a renter share of 51.8%, it has a higher proportion of renters compared to many other ZIP codes in the region.
The combination of a relatively high renter share and a below-metro average home value makes ZIP 07712 a noteworthy area for landlords and small-portfolio investors. It aligns well with the characteristics of a potential value pocket within the metro, where the demand for rental properties is strong and the cost of acquiring property is somewhat lower than the metro average. This could be particularly advantageous for those looking to participate in the Section 8 housing program, as the FMR is significantly below the market rent, indicating a substantial gap that can be leveraged for both rental income and government subsidies.
In contrast to typical ZIP codes within the Monmouth-Ocean, NJ HUD Metro FMR Area, ZIP 07712 offers a balance between affordability for tenants and a reasonable investment value for property owners. The FMR of $1870 is designed to ensure that eligible households can afford decent housing, while the market rent of $2,615 reflects the broader rental market's pricing. This difference highlights opportunities for landlords who can provide quality rentals at or near the FMR rate, thereby attracting Section 8 tenants while still potentially earning above-FMR rents.
Investors should consider ZIP 07712 as a strategic location within the metro, given its characteristics. While it is not the highest-value or most expensive area, its position as a value pocket with strong rental demand and a significant portion of the population renting rather than owning homes makes it an attractive option for those interested in Section 8 properties. The median home value is also indicative of a market where properties might be more accessible to purchase or refinance, especially for those focused on rental investments over owner-occupied homes.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.