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 | $2,210 |
| 1 Bedroom | $2,450 |
| 2 Bedrooms | $3,030 |
| 3 Bedrooms | $3,880 |
| 4 Bedrooms | $4,300 |
| 5 Bedrooms | $4,988 |
| 6 Bedrooms | $5,587 |
| 7 Bedrooms | $6,034 |
| 8 Bedrooms | $6,336 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,030 | $728,022 | 0.42% | F |
| 3BR | $3,880 | $1,012,977 | 0.38% | F |
| 4BR | $4,300 | $1,397,048 | 0.31% | F |
| 5BR | $4,988 | $2,112,279 | 0.24% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 07739, Little Silver, NJ, does not align favorably for landlords participating in the Section 8 program. The Fair Market Rent (FMR) set at $2,870 for the fiscal year 2024 is significantly lower than the market rent reported by the Census ACS, which stands at $3,501. This discrepancy means that landlords would be renting properties below market value, resulting in a financial loss if they aim to cover operational costs and profit margins typical of the local real estate market.
Acquisition in this area is also challenging due to the high median home value of $1,110,864. While the data does not provide specifics on days on market (DOM) or the percentage of homes that have had their prices cut, the high median value suggests that purchasing property here will be expensive. Landlords should expect to invest a substantial amount upfront, with limited flexibility in adjusting prices downward given the lack of data on DOM and price cuts.
Tenant demand is another critical factor. With a total population of 6,105, only 3.7% are renters, indicating a relatively low demand for rental properties. This low renter share implies that finding eligible tenants who can afford the Section 8 rate and meet the program's requirements might be difficult. Landlords could face prolonged vacancy periods, further impacting their bottom line.
In conclusion, ZIP 07739 presents significant challenges for landlords and small-portfolio investors considering the Section 8 program. The disparity between the FMR and market rent, coupled with the high cost of property acquisition and low renter share, makes it an unfavorable location for achieving financial returns consistent with broader real estate investment goals. Landlords should carefully weigh these factors before committing to the area under the Section 8 framework.
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.