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 | $1,870 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,530 |
| 5 Bedrooms | $4,095 |
| 6 Bedrooms | $4,586 |
| 7 Bedrooms | $4,953 |
| 8 Bedrooms | $5,201 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,050 | $291,199 | 0.7% | D |
| 2BR | $2,540 | $398,340 | 0.64% | D |
| 3BR | $3,180 | $656,295 | 0.48% | F |
| 4BR | $3,530 | $791,305 | 0.45% | F |
| 5BR | $4,095 | $857,885 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 07747, Matawan, New Jersey, can be explained through an analysis of the SAFMR (Small Area Fair Market Rent) and local market rents. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $2300. This SAFMR represents the maximum amount that the Housing Choice Voucher Program will pay towards the rent of a two-bedroom unit in Matawan.
In comparison, the local market rent for a similar two-bedroom unit, as measured by ZORI (Zillow Observed Rent Index), is $2,577. This figure reflects the actual rental rates landlords might charge for their properties based on market demand and supply.
A landlord participating in the Section 8 program receives payments from the voucher holder's portion of the rent and the government's reimbursement. The tenant is typically responsible for paying 30% of their adjusted income towards rent. If we assume an average tenant income that would result in a payment of around $690 (based on common scenarios where the tenant pays approximately 30% of a $2300 SAFMR), then the total rent collected by the landlord would be the sum of the tenant's contribution and the government's reimbursement.
The government's reimbursement is capped at the SAFMR, which in this case is $2300. However, this amount does not include utility allowances. Utility allowances are additional payments made directly to the tenant to cover utilities such as electricity, water, and gas. These allowances vary but can add up to a few hundred dollars per month depending on the tenant's household size and local utility costs.
To calculate the reimbursement gap or surplus, subtract the SAFMR ($2300) from the local market rent ($2577). In Matawan, this results in a gap of $277 per month. This means landlords who participate in the Section 8 program for a two-bedroom unit in this ZIP code would collect $277 less than the market rent if they were to charge the ZORI rate.
Landlords must also consider that the SAFMR rate is set specifically for this ZIP code, meaning it does not apply uniformly across the larger county or metro area. This specificity helps ensure that the reimbursement rates reflect the actual cost of renting in Matawan, rather than a broader, potentially less accurate average.
In summary, for a two-bedroom apartment in ZIP 07747, landlords can expect a reimbursement of up to $2300, plus the tenant's contribution of about $690, resulting in a potential monthly shortfall of $277 compared to the local market rent of $2577. This gap is something landlords should factor into their decision-making process when considering participation in the Section 8 program.
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.