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 | $1,880 |
| 1 Bedroom | $2,120 |
| 2 Bedrooms | $2,560 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $3,650 |
| 5 Bedrooms | $4,234 |
| 6 Bedrooms | $4,742 |
| 7 Bedrooms | $5,121 |
| 8 Bedrooms | $5,377 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,560 | $425,055 | 0.6% | D |
| 3BR | $3,190 | $545,649 | 0.58% | F |
| 4BR | $3,650 | $776,480 | 0.47% | F |
| 5BR | $4,234 | $1,022,440 | 0.41% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 07871, Sparta Township, New Jersey, for fiscal year 2024 is set at $2,310. This figure represents the maximum amount that a landlord can receive from the government under the Section 8 program, regardless of the actual market rent. It's important to note that this is not the rent you'll charge your tenants; it's the reimbursement limit.
In contrast, the local Zillow Observed Rental Index (ZORI) for the area is currently at $2,850. This means that while the government will pay up to $2310 per month, you can potentially charge a higher rent to cover the remaining costs. The difference between the FMR and ZORI indicates that there might be a gap of about $540 per month which must be covered by the tenant directly.
The renter share in this area stands at 12.2%, meaning that nearly one in every eight households in Sparta Township relies on rental assistance programs such as Section 8. This suggests a steady demand for affordable housing options, making it likely that you can find eligible tenants for your property.
If you're looking to acquire a new rental property in this ZIP code, the average acquisition cost is around $599,738. This figure gives you an idea of the investment required to enter the market. Keep in mind that the acquisition cost does not include ongoing expenses like maintenance, utilities, and insurance.
Before deciding to participate in the Section 8 program, ensure that your property meets all the necessary requirements for housing quality and safety. The government conducts inspections to make sure that the units comply with the Housing Quality Standards (HQS), which are essential to maintain the contract.
To summarize, participating in Section 8 in ZIP 07871 means you'll receive a capped reimbursement of $2310 per month from the government. With a local ZORI of $2850, you can charge a higher rent to cover additional costs. The 12.2% renter share indicates a reliable demand for subsidized housing. Verify that your property meets HQS standards to avoid any complications down the line.
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.