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 | $2,290 |
| 1 Bedroom | $2,580 |
| 2 Bedrooms | $3,120 |
| 3 Bedrooms | $3,890 |
| 4 Bedrooms | $4,450 |
| 5 Bedrooms | $5,162 |
| 6 Bedrooms | $5,781 |
| 7 Bedrooms | $6,243 |
| 8 Bedrooms | $6,555 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,120 | $409,913 | 0.76% | D |
| 3BR | $3,890 | $609,999 | 0.64% | D |
| 4BR | $4,450 | $737,216 | 0.6% | D |
| 5BR | $5,162 | $803,634 | 0.64% | D |
U.S. Census Bureau data (2024)
The classification of ZIP 07876 (Succasunna, NJ) on the yield and stability axes reveals it to be a moderate cash flow area with low stability characteristics. The Federal Market Rent (FMR) for FY 2024 in this ZIP code is set at $2610, which is slightly above the market rent of $2,516. This indicates a modest potential for rental income, but not the high yields typically associated with areas where FMR significantly exceeds market rents.
To understand the yield better, consider the average home value in ZIP 07876, which stands at $651,309. With an FMR of $2610, the annual rental income would amount to approximately $31,320 per unit. Given the high home values, achieving a high yield relative to property costs is challenging. However, the slight premium over market rates does offer some upside for landlords willing to participate in the Section 8 program.
On the stability axis, Succasunna presents a less favorable picture. Only 5.7% of the residents are classified as renters, indicating a predominantly owner-occupied community. This low percentage of renters suggests that the demand for rental properties, including those under the Section 8 program, may be limited. Additionally, the median household income of $161,304 implies that many residents can afford higher-priced homes and may not rely on subsidized housing options.
The lack of data on days on market (DOM) for rentals further complicates the stability assessment. While high DOM could indicate difficulty in leasing units, the absence of this figure leaves room for uncertainty. Nonetheless, given the low percentage of renters and the relatively high income levels, landlords should anticipate challenges in maintaining a consistent tenant base and possibly higher vacancy rates.
In conclusion, ZIP 07876 offers a balanced approach for landlords and small-portfolio investors looking for a moderate yield with manageable risks. It is neither a high-yield/low-stability flip-style market nor a steady-cashflow zone, but rather a middle ground where the benefits of participating in the Section 8 program must be weighed against the potential instability of the rental market.
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.