Location: Newark, NJ | Metro: Middlesex-Somerset-Hunterdon, 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 | $1,760 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,370 |
| 3 Bedrooms | $2,840 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,840 | $596,491 | 0.48% | F |
| 4BR | $3,190 | $898,954 | 0.35% | F |
| 5BR | $3,700 | $1,346,848 | 0.27% | F |
U.S. Census Bureau data (2024)
In ZIP code 07830, the Section 8 program operates under specific economic guidelines that impact both tenants and landlords. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP is set at $1730 for the fiscal year 2024. This SAFMR figure is crucial because it is the maximum amount that the housing authority will pay on behalf of the tenant. It's important to note that the local market rent for a two-bedroom unit is higher, at $1,979, according to the Census ACS data.
The voucher system works by covering the difference between the tenant's contribution and the SAFMR. The tenant's portion is typically 30% of their income. If we assume an average income of $30,000 per year for a tenant, their monthly contribution would be $750. The housing authority then covers the remaining amount up to the SAFMR, which in this case would be $980. This brings the total reimbursement to $1730.
Utility allowances are also factored into the equation. These allowances vary but generally add a few hundred dollars to the total reimbursement. For instance, if the utility allowance is $200, the landlord receives an additional $200 on top of the base rental payment.
Thus, the landlord in ZIP 07830 can expect to receive a total of $1930 ($1730 base rental + $200 utilities) from the housing authority and the tenant. However, this still falls short of the local market rent of $1,979 by $49 per month. This means there is a reimbursement gap of $49 where the landlord must decide whether to absorb the cost or seek other ways to bridge this financial shortfall.
To summarize, while participating in Section 8 can provide a steady stream of rental income, landlords in ZIP 07830 should be aware of the SAFMR limits and the potential reimbursement gaps when setting their expectations. The typical 2BR voucher reimbursement in this ZIP ends up being $1930, leaving a small surplus of $61 over the SAFMR but falling just shy of the local market rent.
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.