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 | $1,520 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,650 |
| 4 Bedrooms | $2,940 |
| 5 Bedrooms | $3,410 |
| 6 Bedrooms | $3,819 |
| 7 Bedrooms | $4,125 |
| 8 Bedrooms | $4,331 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,650 | $2,567,234 | 0.1% | F |
| 4BR | $2,940 | $3,735,683 | 0.08% | F |
| 5BR | $3,410 | $6,137,029 | 0.06% | F |
U.S. Census Bureau data (2024)
To determine if you should buy in ZIP code 07723 for Section 8 investment, follow this decision tree based on the data provided:
Step 1: Does the Fair Market Rent (FMR) of $1,510 cover the debt service on a $4,269,695 property?
No. The FMR of $1,510 is insufficient to cover the debt service on a property valued at $4,269,695. This makes the property financially unviable for a Section 8 investment without additional subsidies or income from other sources.
It depends. To make this determination, calculate the monthly debt service of the property. If it exceeds $1,510 per unit, then the answer is no. For example, if the property has 10 units, the total FMR would be $15,100 ($1,510 x 10), which is still far below the required monthly debt service. In such a case, the investment is not recommended.
Step 2: Is the market rent of $2,525 (ZORI) above, at, or below the FMR?
Above. The ZORI of $2,525 is significantly higher than the FMR of $1,510. This indicates that the market rent is strong, but it does not change the fact that FMR alone cannot support the debt service of the property. Therefore, the investment remains unadvised unless there is a way to secure higher rents or additional funding.
At or Below. Given that the ZORI is above the FMR, this scenario does not apply. However, if the ZORI were closer to or below the FMR, the investment would be even less advised due to the lack of financial buffer between market conditions and government-set rent limits.
Step 3: Are the 25.0% of renters combined with an unknown number of days on the market (DOM) sufficient to create demand?
Yes. With 25.0% of residents being renters, there is a significant portion of the population potentially interested in rental properties. However, the unknown DOM value means we cannot fully assess the speed at which units might be rented out. Assuming a reasonable DOM, the renter percentage suggests there is enough demand to consider investing, provided the financials align with your risk tolerance.
No. Without knowing the DOM, it's difficult to quantify the demand accurately. However, if the DOM is excessively high, indicating slow turnover rates, then the investment would be less advised despite the 25.0% renter rate.
It depends. The 25.0% renter rate is a positive indicator of demand. But, the lack of DOM data introduces uncertainty about how quickly you can expect to fill units. If you can secure additional information on DOM and find it to be within acceptable ranges, the investment could be considered viable. Otherwise, the high property value and low FMR suggest that the risk is too high.
In conclusion, the primary gating factor is the inability of the FMR to cover the debt service on the property. Until this issue is resolved, the investment in ZIP 07723 for Section 8 purposes is not recommended.
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.