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 | $1,480 |
| 1 Bedroom | $1,670 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,510 |
| 4 Bedrooms | $2,870 |
| 5 Bedrooms | $3,329 |
| 6 Bedrooms | $3,728 |
| 7 Bedrooms | $4,026 |
| 8 Bedrooms | $4,227 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,670 | $286,300 | 0.58% | F |
| 2BR | $2,010 | $353,830 | 0.57% | F |
| 3BR | $2,510 | $448,006 | 0.56% | F |
| 4BR | $2,870 | $596,474 | 0.48% | F |
| 5BR | $3,329 | $695,302 | 0.48% | F |
U.S. Census Bureau data (2024)
The economics of participating in the Section 8 program in ZIP code 07860, Newton, New Jersey, can be clearly defined using the SAFMR (Small Area Fair Market Rent) and ZORI (Zillow Observed Rent Index) figures. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $1770, which is the specific rate for this ZIP code. This means that landlords who accept Section 8 vouchers will receive a reimbursement based on this amount, not a county-wide or metropolitan average.
The local market rent, as measured by ZORI, stands at $2,192. This represents the average rent that tenants might pay for similar units without a voucher. When a landlord participates in Section 8, they agree to accept a rental payment that does not exceed the SAFMR, regardless of the market rate.
A Section 8 voucher pays a significant portion of the rent but not all. Typically, the voucher holder pays approximately 30% of their income toward rent, which includes both the housing costs and utilities. The remaining amount is covered by the voucher, up to the SAFMR limit. If the total rent plus utilities exceeds the SAFMR, the landlord will not receive additional funds from the voucher program to cover the excess.
To illustrate, if a tenant's portion of the rent is $500, the voucher would cover the difference between the tenant’s payment and the SAFMR, which in this case is $1770. Therefore, the voucher would pay $1270 towards the rent, assuming no utility allowances are claimed. Utility allowances vary but generally do not significantly alter the overall reimbursement amount.
Given these numbers, there is a gap between the local market rent ($2,192) and the SAFMR ($1770), indicating a potential surplus for landlords willing to charge below the market rate or a shortfall for those charging market rates. The shortfall for a landlord renting out a two-bedroom unit at the ZORI rate would be $422 per month, as the voucher reimbursement does not cover the full market rent.
In summary, landlords in ZIP 07860 must understand that the SAFMR of $1770 sets the maximum reimbursement for a two-bedroom unit under Section 8. They should also be aware of the discrepancy between this reimbursement and the local market rent of $2,192, leading to a reimbursement gap of $422 per month when renting at market value.
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.