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 | $1,750 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,410 |
| 5 Bedrooms | $3,956 |
| 6 Bedrooms | $4,431 |
| 7 Bedrooms | $4,785 |
| 8 Bedrooms | $5,024 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,980 | $316,804 | 0.62% | D |
| 2BR | $2,390 | $457,104 | 0.52% | F |
| 3BR | $2,980 | $562,200 | 0.53% | F |
| 4BR | $3,410 | $688,020 | 0.5% | F |
| 5BR | $3,956 | $836,783 | 0.47% | F |
U.S. Census Bureau data (2024)
Rockaway, NJ, located in ZIP code 07866, is a suburban community with a total population of 22,663. Only 18.3% of the residents are renters, indicating a primarily owner-occupied market. The area boasts a high median household income of $131,403, which suggests a prosperous demographic. Median home values in Rockaway stand at $563,515, reflecting the affluent nature of the neighborhood and its desirability as a place to live.
The rental market in Rockaway is interesting given the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR for a two-bedroom apartment under the Section 8 program is set at $2,160. However, the Census American Community Survey (ACS) reports the average market rent for a similar unit to be only $1,695. This indicates that there could be potential for profit margins for landlords who participate in the Section 8 program, as they can receive higher rents than the local market average.
Given these economic factors, ZIP 07866 is well-suited for both hands-off voucher operators and hands-on value-add buyers. Voucher operators can benefit from the higher FMR rates compared to the market rent, ensuring a steady stream of income without the need for extensive property management. On the other hand, value-add buyers might find opportunities to improve properties and command rents closer to the FMR, taking advantage of the affluent surroundings and the strong demand for housing in Rockaway.
In conclusion, Rockaway's ZIP 07866 presents a robust environment for Section 8 investments. Its high median income and home values support a stable tenant base, while the favorable FMR-to-market-rent ratio offers financial incentives for landlords. Whether you're looking for a passive investment or an active role in property management, Rockaway provides a promising landscape for real estate investment.
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.