Location: Monmouth-Ocean, NJ | Metro: Middlesex-Somerset-Hunterdon, 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 | $1,580 |
| 1 Bedroom | $1,730 |
| 2 Bedrooms | $2,150 |
| 3 Bedrooms | $2,720 |
| 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 | $1,730 | $336,246 | 0.51% | F |
| 2BR | $2,150 | $432,075 | 0.5% | F |
| 3BR | $2,720 | $523,686 | 0.52% | F |
| 4BR | $3,020 | $612,111 | 0.49% | F |
| 5BR | $3,503 | $683,932 | 0.51% | F |
U.S. Census Bureau data (2024)
If a landlord is considering purchasing a property in ZIP code 07735 (Keyport, NJ) for Section 8 purposes, they should follow this decision tree:
1) Does the Fair Market Rent (FMR) of $1,680 cover the debt service on a property valued at $506,508?
No. The FMR of $1,680 would not be sufficient to cover the debt service on a property valued at $506,508. A mortgage payment alone on such a property, even with a low interest rate and high down payment, would likely exceed this amount, making it difficult to sustain financially without additional income sources or subsidies.
2) Is the market rent of $2,648 (ZORI) above, at, or below the FMR?
Above. The ZORI (Zillow Observed Rent Index) of $2,648 is significantly higher than the FMR of $1,680. This indicates that the market rent is well above what Section 8 tenants can afford, which could lead to difficulties in finding Section 8 tenants willing to pay the lower FMR rate.
3) Are 27.6% renters plus N/A-day days on the market (DOM) enough demand for Section 8?
It Depends. With 27.6% of the population being renters, there is a moderate level of rental demand in Keyport, NJ. However, the lack of data on days on the market (DOM) makes it challenging to assess how quickly properties are rented out. This uncertainty means that while there is some demand, it is unclear if it is robust enough to support a Section 8 investment without extended vacancy periods.
In conclusion, based on the provided data, a landlord should consider other areas for Section 8 investments due to the low FMR compared to the high property value and the significant gap between FMR and market rent. The moderate rental demand does not outweigh these financial concerns.
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.