Location: Newark, NJ | Metro: Newark, 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 | $1,800 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,070 | $514,374 | 0.6% | F |
| 4BR | $3,510 | $581,507 | 0.6% | D |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 07803 in fiscal year 2024 is set at $2,460. This figure represents the payment standard for landlords participating in the Section 8 Housing Choice Voucher program. It's important to note that this is not the amount you will charge your tenants; it's the maximum amount that the government will pay towards rent on behalf of eligible low-income families.
To provide context, the average rent for a two-bedroom apartment in ZIP 07803, according to the latest Census American Community Survey (ACS), is around $1,771. This means that while the FMR is higher, the actual market rent is lower. However, the Section 8 program ensures that you receive a more stable and predictable income, closer to the FMR level, which can be beneficial for managing cash flow.
The demand for rental properties in ZIP 07803 is significant, with 10.2% of the population being renters. This indicates that there is a steady pool of potential tenants who could benefit from the Section 8 program, increasing the likelihood of occupancy and reducing vacancy rates.
When considering the acquisition cost of a property in this area, the median home value is approximately $493,471. This figure can help you evaluate whether the long-term benefits of participating in Section 8 outweigh the initial investment. The guaranteed income from the voucher program can offset some of the risks associated with property ownership, especially in a competitive rental market.
Before you decide to participate in the Section 8 program, ensure that the property meets all the necessary requirements for the program. This includes passing a thorough inspection to confirm compliance with housing quality standards. Once these criteria are met, you can proceed with confidence knowing that your investment will be protected by the government's payment structure.
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.