Location: Newark, NJ | Metro: Newark, 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 | $2,320 |
| 1 Bedroom | $2,630 |
| 2 Bedrooms | $3,170 |
| 3 Bedrooms | $3,950 |
| 4 Bedrooms | $4,530 |
| 5 Bedrooms | $5,255 |
| 6 Bedrooms | $5,886 |
| 7 Bedrooms | $6,357 |
| 8 Bedrooms | $6,675 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,170 | $452,087 | 0.7% | D |
| 3BR | $3,950 | $580,278 | 0.68% | D |
| 4BR | $4,530 | $659,226 | 0.69% | D |
U.S. Census Bureau data (2024)
The rent math in ZIP code 07856, which includes Mount Arlington, NJ, does not fully align with the financial expectations set by the HUD Metro Fair Market Rent (FMR). The HUD FMR for the area is $2,870 for FY 2024, whereas the actual market rent, as indicated by ZORI, stands at $2,664. This suggests that while the rents are competitive, they do not quite reach the benchmark set by HUD, potentially affecting eligibility for Section 8 tenants.
Acquisition in ZIP 07856 is moderately affordable, considering the median home value is $501,563. However, the lack of data on days on market (DOM) and the fact that only 0.1% of listings experienced a price cut indicate a robust seller's market where homes are likely selling quickly and without significant negotiation. This can be challenging for investors looking to acquire properties at a discount.
Tenant demand in the area is relatively low due to the small population size of 4,774 and a renter share of just 27.5%. This means that fewer residents are actively seeking rental housing, which could impact the occupancy rates and the speed at which vacancies can be filled.
In conclusion, ZIP 07856 presents a scenario where the rent math slightly misses the mark for Section 8 eligibility, acquisition costs are moderate but the market dynamics favor sellers, and tenant demand is limited. These factors suggest that while the area is not entirely unviable for investment, it requires careful consideration and strategic planning to ensure profitability. Landlords and small-portfolio investors should weigh these points against their overall investment goals and risk tolerance before committing resources to this market.
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.