Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,800 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,460 |
| 3 Bedrooms | $3,070 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
U.S. Census Bureau data (2024)
The ZIP code 07842 presents a market in motion, characterized by the snapshot of its Fair Market Rent (FMR) at $2240 for the fiscal year 2024. This figure stands alone, as data on market rent, price-cut share, days on market (DOM), and median home value are not available, indicating a gap in comprehensive market analysis that could be filled to provide deeper insights.
The absence of a reported renter share percentage—shown as 0.0%—is a critical point. In reality, it's unlikely for a community to have zero renters, but this statistic suggests an extremely low proportion of rental units compared to owner-occupied homes. This could imply that the area is primarily residential with a strong preference for homeownership, which can exert long-term housing pressure as demand for ownership might exceed the supply of affordable homes.
The FMR at $2240 provides a benchmark for subsidized housing costs but doesn't directly reveal whether supply outpaces demand or vice versa. However, the lack of market rent data and other indicators such as DOM and median home value suggests a less active rental market, possibly due to a higher concentration of owner-occupied properties.
In markets where homeownership dominates, landlords and small-portfolio investors must consider the potential challenges of finding tenants willing to pay the market rate. The dynamics of such a market often mean that rental properties need to offer unique value propositions to attract tenants, whether through location, amenities, or property condition.
To fully understand the trajectory of 07842, additional data points would be necessary. For instance, trends in the local economy, job growth, and migration patterns could help paint a clearer picture of the underlying forces driving the housing market. Moreover, the availability of new construction projects and their impact on the existing housing stock would also contribute to assessing the balance between supply and demand.
Investors looking at ZIP 07842 should be aware of the limited rental market and the high value placed on homeownership. This could translate into a stable but potentially less dynamic rental environment, where properties may need to be priced competitively and managed effectively to ensure occupancy and returns.
Data Sources: FMR data from HUD (2027). 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.