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 | $1,980 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,550 |
| 3 Bedrooms | $3,210 |
| 4 Bedrooms | $3,690 |
| 5 Bedrooms | $4,280 |
| 6 Bedrooms | $4,794 |
| 7 Bedrooms | $5,178 |
| 8 Bedrooms | $5,437 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,210 | $491,180 | 0.65% | D |
| 4BR | $3,690 | $709,269 | 0.52% | F |
U.S. Census Bureau data (2024)
16.6% of the residents in ZIP code 07865 are renters, indicating a significant portion of the population relies on rental properties. This statistic is crucial for landlords and small-portfolio investors looking to understand the local demand. The Fair Market Rent (FMR) for ZIP 07865, set at $1730 for fiscal year 2024, serves as a benchmark for rental prices that align with government assistance programs like Section 8. Comparatively, the market rent reported by the Census ACS stands at $2,181, suggesting that landlords can potentially charge above the FMR if they meet certain quality standards.
$497,261 is the median home value in this area, which reflects the overall property values and can influence the rental market. Given the median income of $108,056, many residents may find it challenging to purchase homes outright, further supporting the rental market's importance. However, the lack of data on days on market (DOM) and the percentage of price-cut shares indicates a stable housing market without significant fluctuations or long periods of unsold inventory.
Investors should note that the gap between the FMR and market rent provides an opportunity to serve both subsidized and non-subsidized tenants. Landlords who aim to attract Section 8 participants must ensure their properties comply with Housing Quality Standards (HQS) to command rents closer to the FMR. For those targeting the broader market, the higher market rent figure of $2,181 offers greater revenue potential.
The analysis concludes that ZIP 07865 presents a balanced opportunity for landlords and small-portfolio investors, with a notable presence of renters and a clear distinction between FMR and market rent levels. The Section 8 program remains a viable option for securing steady tenants, though compliance requirements must be met. Overall, the market appears stable and conducive to rental investments.
Verdict: ZIP 07865 is a favorable market for Section 8 participation, given the 16.6% renter share and the $1730 FMR threshold.
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.