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 | $1,650 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,260 |
| 3 Bedrooms | $2,900 |
| 4 Bedrooms | $3,210 |
| 5 Bedrooms | $3,724 |
| 6 Bedrooms | $4,171 |
| 7 Bedrooms | $4,505 |
| 8 Bedrooms | $4,730 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,830 | $695,998 | 0.26% | F |
| 2BR | $2,260 | $914,889 | 0.25% | F |
| 3BR | $2,900 | $1,212,374 | 0.24% | F |
| 4BR | $3,210 | $2,079,215 | 0.15% | F |
| 5BR | $3,724 | $5,016,320 | 0.07% | F |
U.S. Census Bureau data (2024)
Spring Lake, NJ, with ZIP code 07762, is a small, affluent coastal community situated along the Jersey Shore. The neighborhood boasts a total population of 8,262, with 32.6% of residents being renters. This indicates a mix of homeowners and renters, suggesting a balanced community where both groups coexist. The median household income in Spring Lake is a robust $116,295, reflecting the area's high standard of living. Additionally, the median home value stands at an impressive $1,403,593, underscoring the premium nature of the real estate market here.
The rent economics in Spring Lake present an interesting contrast. According to the Fair Market Rent (FMR) for the fiscal year 2024, the average rent for a voucher holder is set at $1,960. In stark comparison, the actual market rent, as measured by the Zillow Observed Rental Index (ZORI), is significantly higher at $5,100 per month. This substantial gap between the subsidized rent and market rates highlights the potential financial challenges for Section 8 tenants in affording housing in such a high-cost area.
Given these conditions, Spring Lake is likely better suited for a hands-on value-add buyer rather than a hands-off voucher operator. The disparity between FMR and ZORI suggests that landlords who are willing to actively manage their properties and potentially renovate or improve them could find success in attracting and retaining tenants willing to pay closer to market rates. A hands-off approach might struggle due to the limited number of tenants able to afford the higher market rents, while a hands-on strategy can capitalize on the affluent surroundings and the demand for quality rental properties.
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.