Location: Newark, NJ | Metro: Warren County, 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 | $1,620 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,150 |
| 5 Bedrooms | $3,654 |
| 6 Bedrooms | $4,092 |
| 7 Bedrooms | $4,419 |
| 8 Bedrooms | $4,640 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,200 | $366,456 | 0.6% | D |
| 3BR | $2,740 | $510,009 | 0.54% | F |
| 4BR | $3,150 | $693,192 | 0.45% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in Section 8 housing in ZIP code 07821, Byram Township, NJ, are significant. First, tenant turnover could be an issue, as the market rent stands at $1,607, which is notably lower than the Fair Market Rent (FMR) of $1,940 for FY 2024. This discrepancy indicates that tenants may seek higher-paying markets, leading to frequent moves and increased vacancy periods. While the days on market (DOM) for vacant properties is currently unknown, the typical home value in the area is around $516,120, suggesting that homes are relatively expensive. Coupled with a median income of $141,860, landlords might face deferred maintenance costs that can strain finances if not managed properly.
However, these risks must be weighed against the substantial number of renters in the area. With an 8.2% renter share, Byram Township has a high concentration of renters, which often translates into a robust demand for housing vouchers. This high density of renters increases the likelihood of finding tenants who qualify for Section 8, thus mitigating some of the financial risks associated with vacancy and maintenance.
In summary, despite the challenges posed by tenant turnover and deferred maintenance costs, the high density of renters in ZIP 07821 makes it a moderate risk for a first-time Section 8 landlord.
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.