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 | $1,700 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,320 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,310 |
| 5 Bedrooms | $3,840 |
| 6 Bedrooms | $4,301 |
| 7 Bedrooms | $4,645 |
| 8 Bedrooms | $4,877 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,320 | $351,318 | 0.66% | D |
| 3BR | $2,890 | $478,860 | 0.6% | D |
| 4BR | $3,310 | $619,008 | 0.53% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP 07826, Branchville, NJ, involve understanding the Specific Area Fair Market Rent (SAFMR) and comparing it to the local market rent. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $2,150. This figure is specific to this ZIP code and reflects the maximum amount that the housing authority will pay towards a tenant's rent. In contrast, the local market rent for a similar unit, according to Census ACS data, is around $1,667.
A landlord participating in the Section 8 program receives payments from both the tenant and the housing authority. The tenant typically contributes 30% of their adjusted income towards rent, which can vary widely depending on the individual's financial situation. The housing authority covers the difference between the tenant's contribution and the SAFMR, up to the maximum limit.
In addition to the base rent, there are utility allowances. These allowances vary but are designed to help cover the cost of utilities. For ZIP 07826, the utility allowance is not explicitly stated in the provided data, so we must consider it as part of the overall reimbursement structure.
To illustrate, if a tenant's portion of the rent is $500, the housing authority would pay the remaining $1,650 to reach the SAFMR of $2,150. However, since the local market rent is $1,667, the landlord would receive slightly more than the market average when combining the tenant's payment and the housing authority's subsidy.
The typical reimbursement gap or surplus for a two-bedroom apartment in ZIP 07826 can be calculated by subtracting the local market rent from the SAFMR. In this case, the surplus is $2,150 - $1,667 = $483. This means that landlords who participate in the Section 8 program for a two-bedroom apartment in this ZIP code can expect to receive an additional $483 per month compared to the average local market rent.
Note that this surplus is contingent upon the tenant's portion being below the difference between the SAFMR and the local market rent. If the tenant's contribution were higher, the surplus would decrease accordingly. Conversely, if the tenant's portion were lower, the surplus could increase.
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.