Section 8 Fair Market Rent (FMR) for ZIP 07728 - 2027

Investment Score for ZIP 07728

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	$1,780
1 Bedroom	$1,970
2 Bedrooms	$2,430
3 Bedrooms	$3,120
4 Bedrooms	$3,450
5 Bedrooms	$4,002
6 Bedrooms	$4,482
7 Bedrooms	$4,841
8 Bedrooms	$5,083

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,970	$246,385	0.8%	D
2BR	$2,430	$433,369	0.56%	F
3BR	$3,120	$569,766	0.55%	F
4BR	$3,450	$894,698	0.39%	F
5BR	$4,002	$1,065,167	0.38%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07728 (Freehold, NJ) #### Section 8 Voucher Dynamics In Freehold, NJ (ZIP 07728), the Fair Market Rent (FMR) for a two-bedroom unit is set at $2,520 per month for 2026. This amount represents 26.5% of the median household income in the area, which stands at $114,072. The FMRs for other bedroom sizes are as follows: $1,810 for a zero-bedroom unit, $2,040 for a one-bedroom unit, $3,290 for a three-bedroom unit, and $3,650 for a four-bedroom unit. The primary constraint for voucher holders is that landlords can charge up to the FMR but cannot exceed it. This means that tenants with Section 8 vouchers must find housing within these rent limits. However, given the high median home price and the price-to-FMR ratio of 13.9x, it is likely that many units are priced well above the FMR, making it challenging for voucher holders to secure housing. For instance, the Zillow median price for a two-bedroom unit is $420,523, which translates to a monthly mortgage payment far exceeding the FMR. #### Affordability & Renter Profile The population of Freehold is 55,984, with 21.4% of residents being renters. This indicates a relatively small rental market compared to the overall population. The occupancy rate of 97.0% suggests that the market is quite tight, with very few vacant units available. Given the high median household income and the limited number of rental properties, it is reasonable to infer that the typical renter in this area is likely to be middle-class or higher-income individuals who can afford higher rents. The tight market conditions mean that there is strong competition for rental units, especially those that fall within the FMR range. #### Investor Angle From an investor perspective, the ZIP code 07728 offers mixed opportunities. The FMR for a two-bedroom unit is $2,520, which is significantly lower than the median home price of $420,523. This implies that the price-to-FMR ratio is very high, at 13.9x, suggesting that the cost of acquiring property is much higher than the potential rental income. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the costs associated with owning and renting out a property. Assuming a conservative estimate of operating expenses, property taxes, insurance, and maintenance, these costs could easily add up to 50% of the gross rental income. Therefore, the net rental income would be around $1,260 for a two-bedroom unit. This is likely insufficient to cover the mortgage payments on a property priced at $420,523, even with a low interest rate. Given the high price-to-FMR ratio and the tight market conditions, the investment grade for this ZIP code is relatively low. Investors should carefully evaluate the financial feasibility of their investments before proceeding. #### Specific Actionable Insights 1. **Focus on Lower-Rent Units**: Since the FMR for a two-bedroom unit is $2,520, investors should focus on acquiring properties that can be rented out at or below this amount. This might include smaller units such as one-bedroom apartments or studios, which have FMRs of $2,040 and $1,810 respectively. These units are more likely to generate positive cash flow when rented out at FMR. 2. **Consider Multi-Family Properties**: Single-family homes are likely to be priced well above the FMR, making them less attractive for Section 8-focused investors. Instead, multi-family properties such as duplexes, triplexes, or small apartment buildings might offer better opportunities. These properties can be rented out at different FMR levels, potentially balancing the financial burden across multiple units. 3. **Evaluate Long-Term Appreciation Potential**: While the current market dynamics suggest that cash flow might be challenging, investors should also consider the long-term appreciation potential of properties in Freehold. If the median home price continues to rise, the value of the investment could increase over time, providing a solid return on investment despite the initial cash flow challenges. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP 07728 (Freehold, NJ) is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Additionally, the limited number of rental units and the high competition for affordable housing suggest that the returns on investment would be marginal at best. Investors looking for more financially feasible opportunities should consider other ZIP codes with lower price-to-FMR ratios and more favorable rental market conditions.

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.