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 | $1,770 |
| 1 Bedroom | $2,000 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $3,010 |
| 4 Bedrooms | $3,440 |
| 5 Bedrooms | $3,990 |
| 6 Bedrooms | $4,469 |
| 7 Bedrooms | $4,827 |
| 8 Bedrooms | $5,068 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,410 | $538,894 | 0.45% | F |
| 3BR | $3,010 | $641,458 | 0.47% | F |
| 4BR | $3,440 | $913,621 | 0.38% | F |
| 5BR | $3,990 | $1,076,888 | 0.37% | F |
U.S. Census Bureau data (2024)
The potential risks for a Section 8 investment in ZIP code 07869 in Randolph, NJ, must be carefully considered. First, tenant turnover could be an issue. The market rent for properties in this area is $1,807, whereas the Fair Market Rent (FMR) for FY 2024 is set at $2,140. This discrepancy suggests that tenants might find it difficult to cover the higher FMR when their incomes are lower, leading to frequent moves and higher vacancy rates.
Vacancy exposure is another concern. The days on market (DOM) for vacant properties is currently not available, which can make it challenging to predict how long it might take to fill a vacancy. In an environment where rental prices are high, securing tenants can be unpredictable, especially if there's a significant gap between market rents and the FMR.
Deferred maintenance is also a critical risk factor. With a typical home value of $800,804 and a median income of $169,497, many homeowners may struggle to keep up with necessary repairs and upgrades. This financial strain can translate into subpar living conditions for renters, potentially increasing the need for landlords to invest in property improvements to maintain quality standards.
However, these risks are somewhat mitigated by the high renter share in the area, which stands at 22.5%. A larger proportion of renters generally indicates higher demand for housing assistance programs like Section 8 vouchers. This increased demand can help ensure that your property remains occupied, reducing the impact of vacancy exposure.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.