Location: Monmouth-Ocean, NJ | Metro: Monmouth-Ocean, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,760 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,090 |
| 4 Bedrooms | $3,420 |
| 5 Bedrooms | $3,967 |
| 6 Bedrooms | $4,443 |
| 7 Bedrooms | $4,798 |
| 8 Bedrooms | $5,038 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 07740, Long Branch, New Jersey, involve understanding the Subsidized Area Fair Market Rent (SAFMR) and how it interacts with the local rental market. For a two-bedroom apartment in FY 2024, the SAFMR is set at $1,870. This figure represents the maximum amount that the housing authority will pay toward the rent for a Section 8 voucher holder in this specific ZIP code.
Local market rents, as measured by the Zillow Observed Rent Index (ZORI), stand at $2,847 for a similar unit. This discrepancy highlights the potential financial challenge landlords face when accepting Section 8 vouchers. However, the total payment to the landlord includes both the voucher contribution and the tenant's portion of the rent.
A landlord should expect the tenant to contribute approximately 30% of their adjusted income towards the rent. Utility allowances also factor into the equation, though these vary based on the household size and location. For a two-bedroom unit, the utility allowance typically ranges between $200 and $300 per month.
To illustrate, if the tenant's portion is calculated to be $561 (based on a hypothetical adjusted income of $1,870), and the utility allowance is $250, the total monthly reimbursement to the landlord would be:
$1,870 (SAFMR) + $561 (tenant portion) + $250 (utility allowance) = $2,681.
This amount is less than the ZORI of $2,847, indicating a reimbursement gap. In ZIP 07740, landlords accepting a two-bedroom voucher would see a shortfall of about $166 per month. Conversely, if the market rent is below the SAFMR, landlords would benefit from a surplus.
Landlords must weigh the benefits of providing affordable housing against the economic realities of accepting Section 8 vouchers. While the program ensures timely payments and reduces vacancy risks, the reimbursement rates may not fully cover the market value of the property.
Data Sources: FMR data from HUD (2027). 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.