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 | $1,860 |
| 1 Bedroom | $2,050 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,260 |
| 4 Bedrooms | $3,610 |
| 5 Bedrooms | $4,188 |
| 6 Bedrooms | $4,691 |
| 7 Bedrooms | $5,066 |
| 8 Bedrooms | $5,319 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,540 | $602,039 | 0.42% | F |
| 3BR | $3,260 | $879,745 | 0.37% | F |
| 4BR | $3,610 | $1,264,643 | 0.29% | F |
| 5BR | $4,188 | $1,836,605 | 0.23% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 07764, West Long Branch, NJ, reveals some interesting dynamics between federally mandated rental rates and market conditions. To start, the Federal Market Rent (FMR) for a two-bedroom apartment in this area for FY 2024 is set at an annualized figure of $2600. When compared to the median home value of $960,590, this translates into an implied gross yield of approximately 0.27%. This calculation is derived from dividing the annualized FMR by the median home value.
On the other hand, the market rent for a similar unit based on Census ACS data stands at an annualized $1,970. Using the same median home value, this yields an even lower gross yield of about 0.21%. The disparity between these two figures highlights the financial realities faced by landlords participating in the Section 8 program versus those renting at market rates.
To determine which scenario is more realistic, consider the local context. West Long Branch has a renter density of 30.0%, indicating a significant portion of the population owns homes rather than rents. However, the lack of available data on days on market (DOM) means we cannot accurately gauge how quickly units are rented out or the competition level in the rental market. Given the higher gross yield associated with the FMR ($2600), it appears more financially viable for landlords. Nevertheless, the actual occupancy and demand for Section 8 housing in the area must be factored in, as these can significantly influence the profitability of such investments.
In conclusion, while the FMR-based gross yield of 0.27% offers a better return compared to the market rent's 0.21%, the decision to participate in Section 8 should be made considering the broader economic and social landscape of West Long Branch. Landlords and small-portfolio investors need to weigh the benefits of a guaranteed tenant base against the lower overall returns when compared to market rates.
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.