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 | $1,500 |
| 1 Bedroom | $1,700 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,560 |
| 4 Bedrooms | $2,930 |
| 5 Bedrooms | $3,399 |
| 6 Bedrooms | $3,807 |
| 7 Bedrooms | $4,112 |
| 8 Bedrooms | $4,318 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,050 | $373,285 | 0.55% | F |
| 3BR | $2,560 | $539,986 | 0.47% | F |
| 4BR | $2,930 | $679,179 | 0.43% | F |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors targeting ZIP code 07828, Budd Lake, NJ, reveals that the HUD Fair Market Rent (FMR) for FY 2024 stands at $1750. This figure contrasts sharply with the current market rent, which is measured at $2,107 using ZORI (Zillow Observed Rent Index). As such, landlords who rely solely on the HUD FMR will experience negative cash flow, with a shortfall of $357 per unit, unless they can secure premium units that command higher rents.
To further understand the investment potential, consider the median home value in this area, which is $554,007. This places the rent-to-price ratio at approximately 0.38%, indicating that the rental income generated by properties in this ZIP code is relatively low compared to their purchase price. However, this ratio does not significantly impact the decision-making process for investors focused primarily on rental income rather than property appreciation.
The dynamics of days on market (DOM) and price cut shares are currently not available for this ZIP code. Nonetheless, given the disparity between HUD FMR and market rents, the primary focus for investors should be on cash flow management. To achieve positive cash flow, landlords must either increase rents above the HUD FMR or seek out units where the rent is already closer to the market rate. The latter approach might involve targeting luxury apartments or homes that can justify higher rental rates due to superior amenities or location.
The strongest investor angle in ZIP 07828 is stability. Despite the challenges posed by the current HUD FMR, the consistent demand for rental housing in this area ensures a steady stream of tenants, which is crucial for long-term investment success.
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.