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 | $1,540 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $2,980 |
| 5 Bedrooms | $3,457 |
| 6 Bedrooms | $3,872 |
| 7 Bedrooms | $4,182 |
| 8 Bedrooms | $4,391 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,700 | $206,577 | 0.82% | C |
| 2BR | $2,100 | $490,986 | 0.43% | F |
| 3BR | $2,690 | $716,311 | 0.38% | F |
| 4BR | $2,980 | $927,180 | 0.32% | F |
| 5BR | $3,457 | $1,179,626 | 0.29% | F |
U.S. Census Bureau data (2024)
Eatontown, NJ, located in ZIP code 07724, serves as a strong cash-flow anchor within a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the Monmouth-Ocean, NJ HUD Metro FMR Area, which includes Eatontown, is set at $1730 for fiscal year 2024. This figure stands below the market average rental rate of $2,163, indicating a significant spread that benefits landlords participating in the Section 8 program.
The median home value in Eatontown is $676,708, which suggests a relatively stable and affluent housing market. However, the primary focus for Section 8 landlords is on rental properties, where the FMR provides a guaranteed income floor. Given that the FMR is $1730, landlords can secure a steady stream of income that is less volatile compared to the broader market rates, which tend to fluctuate more.
The spread between the FMR and the market rental rate means that landlords can potentially earn above the subsidized amount by renting out their properties to non-Section 8 tenants, thus maximizing their cash flow. In addition, the low 0.1% price-cut share and the lack of significant days on market (DOM) indicate that the rental market in Eatontown is robust, with little need for landlords to lower their rents to attract tenants.
While the 28.2% renter share and median income of $102,756 suggest a diverse tenant base, these factors do not outweigh the strategic importance of the cash-flow stability provided by the Section 8 program. The higher median income implies that there is a substantial number of potential tenants who could afford market rates, but also indicates a strong demand for affordable housing options, making Section 8 vouchers particularly attractive to renters.
In conclusion, ZIP 07724 should be considered a cash-flow anchor due to the favorable spread between the FMR and market rental rates, coupled with the stable housing market conditions in Eatontown. This makes it an ideal location for landlords looking to secure consistent, government-backed rental income while maintaining the flexibility to rent at market rates when possible.
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.