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 | $1,560 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,130 |
| 3 Bedrooms | $2,730 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,720 | $250,560 | 0.69% | D |
| 2BR | $2,130 | $342,149 | 0.62% | D |
| 3BR | $2,730 | $447,625 | 0.61% | D |
| 4BR | $3,020 | $509,380 | 0.59% | F |
| 5BR | $3,503 | $547,070 | 0.64% | D |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 07734, Keansburg, NJ, reveals some interesting insights into potential investment opportunities. To start, let's look at the annualized Fair Market Rent (FMR) for a two-bedroom unit, which stands at $1920 for fiscal year 2024. When we compare this to the Zillow Observed Rental Index (ZORI), the market rent for a similar unit is $2,440 annually.
The median home value in Keansburg is $407,770. Using these figures, we can calculate the implied gross yield for both scenarios. For the Section 8 scenario, the gross yield would be calculated as follows:
Given that Keansburg has a renter density of 42.3%, it suggests a moderate demand for rental properties. However, the N/A-day DOM (days on market) indicates either limited data or a unique situation where properties are either rented quickly or there is insufficient turnover data to provide an accurate figure. This makes it challenging to assess the typical time frame for finding tenants, but it does imply strong interest in the area.
The gross yield comparison shows that the market rent scenario offers a higher return at 7.1% compared to the Section 8 scenario at 5.6%. However, the decision between these options should consider more than just the gross yield. The Section 8 program provides a stable income stream with government-backed payments, which is particularly valuable in areas with significant renter populations. In Keansburg, where nearly half of the residents are renters, this stability could outweigh the slightly lower gross yield.
In conclusion, while the market rent scenario presents a higher gross yield, the Section 8 option offers a reliable income source, especially given the local renter density. Landlords and small-portfolio investors should weigh these factors carefully when deciding on their investment strategy in Keansburg.
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.