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 | $1,460 |
| 1 Bedroom | $1,640 |
| 2 Bedrooms | $1,990 |
| 3 Bedrooms | $2,490 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,990 | $209,273 | 0.95% | C |
| 3BR | $2,490 | $404,843 | 0.62% | D |
U.S. Census Bureau data (2024)
17.2% of Montague Township, NJ's population are renters, indicating a modest demand for rental properties. The $1450 Fair Market Rent (FMR) set for zip code 07827 for fiscal year 2024 is higher than the reported $1,260 market rent based on Census ACS data, suggesting that Section 8 vouchers can provide a financial buffer for landlords. Given the area's median home value of $319,383, it's clear that homeownership is a significant factor in the local economy, yet the median income of $101,444 still allows for a reasonable cost-to-income ratio for both renters and homeowners. The 0.1% price-cut share reflects the stability of property values in Montague Township, which is reassuring for long-term investments. Despite the lack of data on days on market (DOM), the combination of a slightly above-market FMR and stable property values makes Montague Township a favorable location for landlords participating in the Section 8 program. The discrepancy between the FMR and the actual market rent could allow landlords to maintain or even increase their rental income while providing affordable housing options. This analysis supports the notion that Section 8 participation can be financially beneficial for landlords in 07827, offering a steady stream of income with minimal risk of vacancy or rent default.
Verdict: Section 8 is a sound investment strategy in Montague Township, NJ, given the favorable FMR and stable property values.
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.