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 | $1,740 |
| 1 Bedroom | $1,930 |
| 2 Bedrooms | $2,380 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,930 | $388,379 | 0.5% | F |
| 2BR | $2,380 | $480,504 | 0.5% | F |
| 3BR | $3,050 | $603,359 | 0.51% | F |
| 4BR | $3,380 | $687,823 | 0.49% | F |
| 5BR | $3,921 | $750,299 | 0.52% | F |
U.S. Census Bureau data (2024)
The Section 8 housing analysis for ZIP code 07753, located in Neptune Township, New Jersey, reveals a significant disparity between the Fair Market Rent (FMR) and the actual market rent. The FMR for 2024 in ZIP 07753 is set at $1990, while the Zillow Observed Rent Index (ZORI) indicates that the average market rent is $2961. This means that landlords can charge $971 more per month above the FMR, which represents a 48.8% premium over the government-set rate.
In Neptune Township, where 27.9% of residents are renters, the median home value stands at $575,809 and the median income is $95,712. Given these economic conditions, landlords who accept Section 8 vouchers are effectively subsidizing housing costs for their tenants, as they would be renting units at a rate significantly lower than the open-market price. This subsidy comes with several implications for property owners.
First, landlords must ensure that their properties meet the Housing Quality Standards (HQS) required by the Section 8 program. This may necessitate additional maintenance and upgrades, which could incur costs. Second, the income from Section 8 tenants is guaranteed by the government, but it does not cover the full market rent. Therefore, landlords are essentially taking on a yield play, where they accept a lower rental income in exchange for the stability and security of having a tenant whose rent is backed by federal funds.
Moreover, the gap between the FMR and market rent highlights the financial burden that accepting Section 8 vouchers places on landlords. While the median income in Neptune Township is relatively high at $95,712, the difference between the $1990 FMR and the $2961 market rent means that landlords are foregoing nearly $12,000 annually per unit when compared to what they could potentially earn in the open market. This analysis underscores the importance of considering both the benefits and drawbacks of participating in the Section 8 program in Neptune Township.
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.