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 | $1,740 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,380 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,380 | $1,045,566 | 0.23% | F |
| 3BR | $3,050 | $1,624,862 | 0.19% | F |
| 4BR | $3,380 | $2,342,083 | 0.14% | F |
| 5BR | $3,921 | $2,953,836 | 0.13% | F |
U.S. Census Bureau data (2024)
Avon by the Sea, NJ (ZIP 07717) is a small coastal community with a total population of 2,030 residents. The area has a relatively low rental rate at 31.5%, indicating that a majority of the residents own their homes. The median household income in the area is notably high at $122,635, suggesting a well-off community. Median home values reflect this prosperity, sitting at an impressive $1,735,258.
The rental economics in Avon by the Sea present an interesting opportunity. The Fair Market Rent (FMR) for the zip code in fiscal year 2024 is set at $1,860, which is below the actual market rent of $2,078 as reported by the Census Bureau's American Community Survey (ACS). This means that landlords can potentially charge a premium over the FMR for Section 8 eligible tenants, although they must ensure that rents do not exceed the market rate by more than 10%.
Given these factors, Avon by the Sea might be more suited to a hands-on value-add buyer rather than a hands-off voucher operator. The low percentage of renters and the high median income suggest that there is significant potential for property appreciation and value enhancement through targeted investments. For a landlord looking to manage properties actively, the opportunity to improve rental yields by aligning with market rates while still participating in the Section 8 program could be appealing. However, the high median home value also implies that the cost of entry for investment properties is substantial, making it less attractive for those seeking passive income through minimal management efforts.
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.