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 | $1,600 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,180 |
| 3 Bedrooms | $2,800 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,180 | $707,690 | 0.31% | F |
| 3BR | $2,800 | $741,412 | 0.38% | F |
| 4BR | $3,090 | $950,319 | 0.33% | F |
| 5BR | $3,584 | $1,085,548 | 0.33% | F |
U.S. Census Bureau data (2024)
ZIP code 07727, located in Farmingdale, NJ, falls within the broader Monmouth-Ocean, NJ HUD Metro FMR Area. The Federal Market Rent (FMR) for this zip code in fiscal year 2024 is set at $1,500. This figure represents the maximum rental assistance payment that can be made on behalf of a tenant under the Section 8 Housing Choice Voucher program.
The market rent in 07727 is currently $1,931, which is higher than the FMR but indicates that the local rental market is slightly above average compared to other ZIP codes in the area. The median home value stands at $808,421, suggesting that 07727 is a relatively affluent neighborhood. Additionally, the renter share in this ZIP code is 17.6%, indicating that a significant portion of residents lease their homes rather than own them.
To determine the relative position of 07727 within the Monmouth-Ocean, NJ HUD Metro FMR Area, consider the following:
The FMR of $1,500 is likely below the average for the region, making it less attractive for landlords seeking maximum rental assistance payments. However, it still provides a substantial subsidy for low-income renters.
A market rent of $1,931 suggests that landlords in 07727 can expect to charge slightly more than the HUD FMR, potentially leading to a modest profit margin if they accept Section 8 vouchers.
The median home value of $808,421 places 07727 among the higher-priced ZIP codes in the area, indicating a premium sub-market. This high valuation could be due to desirable amenities, quality of schools, or proximity to urban centers.
The 17.6% renter share is comparable to many other ZIP codes in the area, where a similar percentage of residents choose to rent over owning. This balance between renters and owners might suggest a stable housing market.
The combination of a lower FMR with a higher market rent and median home value implies that 07727 is not a typical value pocket for Section 8 participants. Instead, it leans towards being a mid-tier neighborhood, offering a mix of affordability for some renters and higher costs for others. The high renter share with below-average home values in comparison to the metro does not signal a classic Section 8 sweet spot, as the home values are significantly above the regional average. Therefore, landlords in 07727 should consider the competitive nature of both the rental and homeownership markets when deciding to participate in the Section 8 program.
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.