Section 8 Fair Market Rent (FMR) for ZIP 07720 - 2027

Location: Monmouth-Ocean, NJ | Metro: Monmouth-Ocean, NJ HUD Metro FMR Area

Investment Score for ZIP 07720

F
Monthly Rent (2BR)
$2,220
Median Price (2BR)
$844,200
1% Rule
0.26%
Annual Yield
3.16%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,620
1 Bedroom$1,800
2 Bedrooms$2,220
3 Bedrooms$2,850
4 Bedrooms$3,150
5 Bedrooms$3,654
6 Bedrooms$4,092
7 Bedrooms$4,419
8 Bedrooms$4,640

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,800 $570,631 0.32% F
2BR $2,220 $844,200 0.26% F
3BR $2,850 $1,183,515 0.24% F
4BR $3,150 $1,579,700 0.2% F
5BR $3,654 $1,981,099 0.18% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
4,158
Median Household Income
$97,005
Housing Units
3,202
Renter Percentage
51.5%
Occupancy Rate
69.7%
Renter Occupied
1,150

The ZIP code 07720, located in Bradley Beach, NJ, stands out due to its unique demographic and economic characteristics. With a population of 4,158 residents, 51.5% of whom are renters, this area has a median income of $97,055 and a median home value of $1,085,251. These figures indicate a community that is both affluent and significantly reliant on rental properties.

The voucher economics in Bradley Beach present a notable opportunity for landlords. The Fair Market Rent (FMR) for the ZIP code for fiscal year 2024 is set at $1,840, while the market rent, as measured by the Zillow Rent Index (ZORI), is $2,688. This difference means that landlords can potentially secure higher rents through market rates while still benefiting from the stability and reliability of Section 8 vouchers. The gap between FMR and ZORI suggests that the demand for affordable housing is strong, even in an otherwise high-value area.

Based on the available data, Bradley Beach's ZIP 07720 appears to be a stable market. The relatively high median income and median home values suggest a robust local economy and a strong foundation for property investments. However, the significant percentage of renters indicates a need for diverse housing options, which could also signal a transitional element within the community as it balances the needs of both homeowners and renters. For small-portfolio investors, this ZIP code offers a mix of stability and potential growth opportunities, particularly in the rental sector.

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.