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 | $2,440 |
| 1 Bedroom | $2,690 |
| 2 Bedrooms | $3,330 |
| 3 Bedrooms | $4,270 |
| 4 Bedrooms | $4,730 |
| 5 Bedrooms | $5,487 |
| 6 Bedrooms | $6,145 |
| 7 Bedrooms | $6,637 |
| 8 Bedrooms | $6,969 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,330 | $431,173 | 0.77% | D |
| 3BR | $4,270 | $606,137 | 0.7% | D |
| 4BR | $4,730 | $925,733 | 0.51% | F |
| 5BR | $5,487 | $1,243,986 | 0.44% | F |
U.S. Census Bureau data (2024)
The ZIP code 07751, located in Morganville, NJ, within the Monmouth-Ocean, NJ HUD Metro FMR Area, presents itself as an ideal cash-flow anchor for a Section 8 portfolio strategy. The Fair Market Rent (FMR) for the area in fiscal year 2024 is set at $2870, which is notably lower than the average market rent of $3,292. This means that properties in this ZIP can be rented out at the Section 8 rate while still being competitive with the local rental market, ensuring steady occupancy.
Moreover, the median home value in the area stands at $857,388, indicating a relatively high-value neighborhood. Despite this, the low FMR rate allows landlords to maintain a strong cash flow when participating in the Section 8 program. The difference between the FMR and market rents provides a buffer, making it easier to manage properties without the risk of frequent vacancies or rent collection issues.
The ZIP 07751 also has a low 0.2% price-cut share, suggesting that there is little pressure on landlords to reduce rents to attract tenants. This stability is further reinforced by the N/A-day Days on Market (DOM), implying that homes in this area are typically occupied and do not remain vacant for extended periods.
While the median income in the area is quite high at $181,205, the 9.6% renter share shows that there is still a significant portion of the population relying on rental housing, including those who might qualify for Section 8 assistance. This mix of factors makes ZIP 07751 a reliable choice for landlords looking to secure consistent cash flow within their Section 8 portfolios.
In conclusion, ZIP 07751 is best categorized as a cash-flow anchor due to the favorable spread between the FMR and market rents, combined with the stability of property values and occupancy rates. These conditions ensure that landlords can count on regular and predictable income streams from their Section 8 properties in this area.
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.