Section 8 Fair Market Rent (FMR) for ZIP 07836 - 2027

Investment Score for ZIP 07836

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

Investment Analysis by Bedroom Size

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

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

A decision tree for whether to invest in ZIP 07836 for Section 8 properties starts with understanding the Fair Market Rent (FMR) and how it aligns with your financial goals.

1) Does the FMR of $2330 cover debt service on a property valued at $649,766?

• Yes: If the FMR of $2330 can cover your debt service, then you're in a position where Section 8 tenants can afford the rent. This means the zip code is financially viable for Section 8 properties.
• No: If the FMR of $2330 does not cover your debt service, investing in ZIP 07836 for Section 8 would be unprofitable. Consider areas with higher FMRs or lower property values.

2) Is the market rent of $1,862 above, at, or below the FMR?

• Above FMR: If the market rent exceeds the FMR, it suggests that there is potential to charge higher rents outside of Section 8. However, for Section 8 investments, you must adhere to the FMR cap of $2330. This scenario indicates that the area is generally more expensive, which could mean higher demand but also higher competition.
• At FMR: If the market rent matches the FMR, you can expect steady occupancy rates without the need to reduce rent to attract tenants. The property's value at $649,766 should be carefully assessed against the rental income to ensure profitability.
• Below FMR: If the market rent is below the FMR, you have an opportunity to charge higher rents to Section 8 tenants, making the investment potentially more profitable. However, it also means that the general rental market might not support higher rents, so reliance on Section 8 vouchers will be critical.

3) Are 33.3% of residents renters and is the Days on Market (DOM) sufficient to indicate demand?

• Yes: With 33.3% of residents being renters, there is a significant portion of the population that could potentially be Section 8 tenants. If the DOM is low or non-existent (N/A), it indicates strong demand for rentals in the area, suggesting that finding tenants should not be an issue.
• No: If the percentage of renters is significantly lower, or if the DOM is high, it signals weak demand for rentals, which could make it difficult to find Section 8 tenants willing to pay the FMR of $2330. In this case, investing in ZIP 07836 for Section 8 purposes would be less favorable.
• It Depends: If the percentage of renters is moderate and the DOM is neither particularly high nor low, the decision hinges on other factors such as the local economy, employment rates, and the number of available Section 8 vouchers. These elements will determine the actual demand for Section 8 properties.

In summary, if the FMR of $2330 covers debt service on a $649,766 property, the market rent of $1,862 is below the FMR, and 33.3% of residents are renters with sufficient demand indicated by N/A DOM, then the answer is Yes. Otherwise, the decision will either be No or It Depends, based on the specific conditions outlined above.

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.