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 | $1,530 |
| 1 Bedroom | $1,690 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,710 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,090 | $471,399 | 0.44% | F |
| 3BR | $2,710 | $638,241 | 0.42% | F |
| 4BR | $3,000 | $740,998 | 0.4% | F |
| 5BR | $3,480 | $823,481 | 0.42% | F |
U.S. Census Bureau data (2024)
In ZIP 07718, which encompasses Belford, NJ, and is part of Monmouth County, the economics of Section 8 housing can be quite favorable for landlords, but it's important to understand the specifics. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $2130 per month for fiscal year 2024. This figure is crucial because it represents the maximum amount that a Section 8 voucher will cover for a unit of this size.
The local market rent for a similar two-bedroom unit is typically around $1500 per month, according to the Census ACS (American Community Survey) data. This means that the SAFMR is higher than the average market rent, potentially allowing landlords to charge more than they would in a non-voucher situation.
A Section 8 voucher works by covering the difference between the tenant's contribution and the total rent. The tenant's portion is generally 30% of their adjusted income, while the remaining 70% is covered by the voucher program. In addition to the base rent, there are also utility allowances. For ZIP 07718, the utility allowance for a two-bedroom unit is typically included in the SAFMR calculation, so landlords do not need to separately account for utilities.
To illustrate, if a tenant's adjusted income is $1500 per month, their contribution would be $450 (30%). If you charge the SAFMR rate of $2130, the voucher program would cover the remaining $1680. Thus, the total monthly rent collected would be $2130, with the voucher covering $1680 and the tenant paying $450.
Note that the SAFMR is specifically set for this ZIP code, meaning it reflects the unique rental market conditions here in Belford, NJ. Landlords should ensure that their units meet the Housing Quality Standards (HQS) set by the Department of Housing and Urban Development (HUD) to qualify for Section 8 participation.
Given these numbers, landlords in ZIP 07718 can expect a surplus when renting a two-bedroom unit under a Section 8 voucher. The gap between the SAFMR ($2130) and the local market rent ($1500) suggests that landlords could receive up to $630 more per month than the typical market rate, assuming the tenant's income allows for the full SAFMR to be utilized. This surplus can help offset any administrative costs associated with participating in the Section 8 program.
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.