Section 8 Fair Market Rent (FMR) for ZIP 07834 - 2027

Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area

Investment Score for ZIP 07834

Monthly Rent (2BR)

$2,440

Median Price (2BR)

$505,832

1% Rule

0.48%

Annual Yield

5.79%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,790
1 Bedroom	$2,020
2 Bedrooms	$2,440
3 Bedrooms	$3,040
4 Bedrooms	$3,480
5 Bedrooms	$4,037
6 Bedrooms	$4,521
7 Bedrooms	$4,883
8 Bedrooms	$5,127

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,440	$505,832	0.48%	F
3BR	$3,040	$666,412	0.46%	F
4BR	$3,480	$804,385	0.43%	F
5BR	$4,037	$1,106,344	0.36%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

18,385

Median Household Income

$156,902

Housing Units

7,004

Renter Percentage

12.0%

Occupancy Rate

94.2%

Renter Occupied

790

The economics of Section 8 housing in ZIP code 07834, Denville, NJ, involve understanding the interplay between the SAFMR (Small Area Fair Market Rent) and the local market rent. For fiscal year 2024, the SAFMR for a two-bedroom apartment in this specific ZIP code is set at $2230. This means that landlords participating in the Section 8 program can charge up to this amount for a two-bedroom unit.

However, the local market rent for a similar two-bedroom apartment, according to the Census ACS data, is $1,866. This indicates that the SAFMR is higher than the average market rent, which could be beneficial for landlords looking to stabilize their rental income.

A Section 8 voucher works by covering the difference between the tenant's portion and the total rent. The tenant typically pays 30% of their adjusted income towards rent, plus any applicable utility allowances. Let's break down the payment structure:

Tenant Portion: If we assume a tenant's adjusted income is $1,500 per month, they would pay 30% of this amount, which is $450.
Voucher Payment: The voucher would cover the remainder of the rent, up to the SAFMR limit. In this case, it would be $2230 minus the $450 paid by the tenant, leaving $1,780 covered by the voucher.
Utility Allowances: Utility allowances are also factored into the total reimbursement. These vary but are typically around $300-$500 for a two-bedroom apartment. Assuming an allowance of $400, the total reimbursement would be $1,780 (rent) + $400 (utilities) = $2,180.

This calculation shows that even though the SAFMR is $2230, the actual reimbursement after accounting for the tenant's contribution and utility allowances is lower. Specifically, the typical reimbursement for a two-bedroom apartment in Denville, NJ, under the Section 8 program would be $2,180.

Given the local market rent of $1,866, landlords in ZIP 07834 would receive a surplus of approximately $314 per month if they were to rent a two-bedroom apartment at the market rate using a Section 8 voucher. This surplus represents the additional amount above the market rent that the voucher covers, making it a potentially attractive option for landlords who wish to ensure steady and reliable rental income without the risk of vacancy or non-payment.

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.