Location: Warren County, NJ | Metro: Warren County, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,910 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,410 |
| 3 Bedrooms | $2,970 |
| 4 Bedrooms | $3,510 |
| 5 Bedrooms | $4,072 |
| 6 Bedrooms | $4,561 |
| 7 Bedrooms | $4,926 |
| 8 Bedrooms | $5,172 |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 07880 operate under the guidelines set by the SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment, which is $1770 for the fiscal year 2024. This SAFMR figure is specifically tailored for this ZIP code, meaning it reflects the rental rates unique to this area. However, it's important to note that the local market rent for 07880 is currently listed as N/A, indicating there might be limited data available on the exact market rents for comparison.
When a landlord participates in the Section 8 program, the reimbursement they receive is based on the SAFMR and the tenant's portion of the rent. The tenant is generally responsible for paying 30% of their adjusted income towards rent and utilities. The remainder, up to the SAFMR limit, is covered by the housing authority. For instance, if a tenant has an adjusted monthly income of $1500, they would pay 30% of that, which is $450, towards rent and utilities. The housing authority would then cover the difference between the tenant’s payment and the SAFMR, up to $1770.
In addition to the base rent, there are utility allowances that can vary depending on the location and the type of unit. These allowances are designed to help cover the costs of electricity, gas, water, and other utilities. If the utility allowance for a two-bedroom apartment in 07880 is, say, $200, the total amount a landlord could receive from the housing authority would be the SAFMR plus the utility allowance, totaling $1970.
To illustrate, let's assume the tenant’s portion is $450, and the utility allowance is $200. In this scenario, the housing authority would pay the landlord $1520 ($1770 - $200 utility allowance - $450 tenant portion) to ensure the total rent and utilities do not exceed the SAFMR of $1770.
The reimbursement gap or surplus for a two-bedroom apartment in ZIP 07880 would depend on the actual market rent compared to the SAFMR. Since the local market rent is listed as N/A, we cannot provide a precise figure for the gap or surplus. However, if the market rent were higher than $1770, landlords would face a gap, where they would need to cover the difference out of pocket. Conversely, if the market rent were lower than $1770, landlords would benefit from a surplus, receiving more than the typical market rent for a similar property.
Landlords should carefully consider these factors when deciding whether to participate in the Section 8 program in ZIP 07880. While the SAFMR provides a predictable income source, the lack of local market rent data makes it challenging to assess potential gaps or surpluses accurately.
Data Sources: FMR data from HUD (2027). 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.