Location: Warren County, 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 | $1,790 |
| 1 Bedroom | $1,800 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,260 |
| 5 Bedrooms | $3,782 |
| 6 Bedrooms | $4,236 |
| 7 Bedrooms | $4,575 |
| 8 Bedrooms | $4,804 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,240 | $290,303 | 0.77% | D |
| 3BR | $2,750 | $398,213 | 0.69% | D |
| 4BR | $3,260 | $557,341 | 0.58% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 07863, which covers Oxford, NJ, in Warren County, operate under specific parameters that affect both landlords and tenants. For fiscal year 2024, the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code is set at $1540. This figure represents the maximum amount that the Housing Choice Voucher program will pay towards rent for a unit of this size, based on the specific ZIP code's rental market conditions.
In comparison, the local market rent for a two-bedroom apartment, as reported by the Census American Community Survey (ACS), averages at $1,589. This indicates that landlords might face a slight challenge in matching their rental rates to the SAFMR without losing out on potential income. However, it also suggests that landlords can expect to be reimbursed an amount very close to the actual market rent.
A landlord participating in the Section 8 program receives payments from the voucher directly, covering the majority of the rent. The tenant is responsible for paying a portion of the rent, typically around 30% of their household income, plus any additional utility costs not covered by the voucher. Utility allowances vary but generally cover part of the heating, cooling, and electricity expenses.
To illustrate, if a tenant's share of the rent is calculated to be $462 (assuming a household income of $1,540 per month), then the total rent charged could be $1,540, with the tenant paying $462 and the government covering the remaining $1,078. If the actual market rent is higher, say $1,589, the landlord would still only receive the maximum SAFMR payment of $1,078 from the voucher program, leaving a shortfall of $511 - $1,078 = $511.
However, the SAFMR includes an allowance for utilities, which can range from $300 to $500 depending on the season and type of utilities. If we assume an average utility allowance of $400, the total reimbursement to the landlord would be $1,078 + $400 = $1,478. Given the local market rent of $1,589, the landlord would experience a reimbursement gap of $1,589 - $1,478 = $111 per month.
In summary, landlords in ZIP code 07863 can expect a reimbursement rate for a two-bedroom apartment that closely aligns with the market rent, with a minor reimbursement gap of approximately $111 per month. This gap must be considered when deciding whether to participate in the Section 8 program, balancing the security of guaranteed rental income against the potential for slightly lower overall revenue compared to market-rate rentals.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.