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 | $1,540 |
| 1 Bedroom | $1,710 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,710 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,710 | $362,384 | 0.47% | F |
| 2BR | $2,110 | $471,939 | 0.45% | F |
| 3BR | $2,710 | $698,966 | 0.39% | F |
| 4BR | $3,000 | $938,382 | 0.32% | F |
| 5BR | $3,480 | $1,148,475 | 0.3% | F |
U.S. Census Bureau data (2024)
The ZIP code 07748, located in Middletown, NJ, represents a market with a relatively modest renter population. Out of the total population of 28,633, only 13.2% are renters, indicating that this area is predominantly homeowner-dominated rather than a renter-heavy zone. This means that the demand for rental properties, including those using Section 8 vouchers, is likely to be lower compared to areas with a higher percentage of renters.
The median household income in this ZIP code is quite high at $152,981. When considering the market rent of $3,025, it's clear that typical rent eats up a relatively small portion of the local income. Specifically, the market rent represents approximately 20% of the median monthly income when calculated as $152,981 / 12 months = $12,748.33 per month. This suggests that most residents can afford market rates without needing assistance.
In comparison to the Fair Market Rent (FMR) figure of $1,870 for FY 2024, which is set by HUD to determine payment standards for Section 8 vouchers, there is a significant gap between the FMR and the actual market rent. The FMR is almost half of the market rent, implying that tenants relying solely on Section 8 vouchers will struggle to find affordable housing options in this ZIP code. Landlords in 07748 may not see many applications from voucher holders due to the disparity between the voucher amount and the prevailing market rents.
The tenant profile expected in this area would typically consist of individuals or families who can afford market rates. These tenants are likely to have stable employment and a good credit history, given the high median income level. However, landlords should also be prepared for a smaller number of potential tenants who might seek alternative forms of financial assistance, as the cost of living here exceeds the typical support provided by Section 8 vouchers.
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.