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 | $1,620 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,680 | $268,626 | 0.63% | D |
| 2BR | $2,070 | $363,162 | 0.57% | F |
| 3BR | $2,550 | $492,558 | 0.52% | F |
| 4BR | $3,000 | $625,546 | 0.48% | F |
| 5BR | $3,480 | $723,728 | 0.48% | F |
U.S. Census Bureau data (2024)
The ZIP code 07840, encompassing Hackettstown, NJ, presents a dynamic rental market that is currently favoring demand over supply. This conclusion is drawn from the snapshot of key metrics: the Fair Market Rent (FMR) for ZIP 07840 in fiscal year 2024 is set at $1,680, while the actual market rent, as measured by ZORI, stands significantly higher at $2,543. This gap indicates a robust rental market where tenants are willing to pay above the FMR, suggesting strong demand.
A further indicator of this market's health is the low price-cut share of just 0.1%, implying that landlords rarely need to reduce their asking prices to attract tenants. Additionally, the days on market (DOM) for rental listings is relatively short at 22 days, which supports the notion that rental properties are being occupied quickly once they become available, a sign of active tenant interest.
The median home value in ZIP 07840 is $489,359. Considering the disparity between the FMR and the actual market rent, it suggests that homeownership might be less affordable for some residents, thereby driving them towards renting. This is corroborated by the fact that 30.3% of the households in the area are renters, a figure that points to significant long-term housing pressure. The high renter share can be attributed to both affordability issues and the attractiveness of renting in this market.
In summary, the current dynamics in ZIP 07840 suggest a rental market where demand exceeds supply. Landlords can expect steady occupancy rates and little need to adjust rents downward. The substantial renter population also signals an ongoing challenge for those seeking homeownership, likely due to the higher costs associated with purchasing a home compared to the rental prices. For small-portfolio investors, this represents a potentially lucrative opportunity, given the strong tenant interest and limited need for price concessions.
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.