Section 8 Fair Market Rent (FMR) for ZIP 07901 - 2027

Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area

Investment Score for ZIP 07901

F
Monthly Rent (2BR)
$3,030
Median Price (2BR)
$654,082
1% Rule
0.46%
Annual Yield
5.56%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$2,220
1 Bedroom$2,510
2 Bedrooms$3,030
3 Bedrooms$3,780
4 Bedrooms$4,330
5 Bedrooms$5,023
6 Bedrooms$5,626
7 Bedrooms$6,076
8 Bedrooms$6,380

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $3,030 $654,082 0.46% F
3BR $3,780 $1,047,472 0.36% F
4BR $4,330 $1,697,169 0.26% F
5BR $5,023 $2,769,592 0.18% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
24,314
Median Household Income
$179,701
Housing Units
9,459
Renter Percentage
33.6%
Occupancy Rate
95.3%
Renter Occupied
3,033

The ZIP code 07901, located in Summit, NJ, presents a dynamic rental market that reflects strong demand. The Fair Market Rent (FMR) for the area stands at $2,670 for fiscal year 2024, while the actual market rent, measured by Zillow's Observed Rental Index (ZORI), is slightly higher at $2,821. This indicates that the rental market is robust and tenants are willing to pay above the fair market rate, suggesting a competitive environment.

A key indicator of market health is the zero percent price-cut share, which means that landlords are not having to reduce rents to attract tenants. This further supports the notion that demand is high relative to supply, making it an attractive market for landlords and small-portfolio investors.

The median home value in ZIP 07901 is $1,360,950, reflecting the overall high cost of living in the area. However, the lack of available data on days on the market (DOM) suggests that sales activity might be less frequent, possibly due to the high barriers to entry for homebuyers. This could imply that the rental market is more active and significant in this ZIP code.

The 33.6% renter share highlights a substantial portion of the population that prefers or requires renting over owning. This percentage points to ongoing housing pressure, as a considerable number of residents are unable or unwilling to purchase homes, leading to sustained demand for rental properties. For landlords, this suggests a stable tenant base and potentially fewer vacancies.

In summary, the rental market in ZIP 07901 is characterized by high rents, no need for price cuts, and a significant renter population. These factors indicate a market where demand outpaces supply, creating favorable conditions for those invested in rental properties. The dynamics of this market support the idea that it is in motion, driven by both economic and demographic factors that sustain a healthy rental environment.

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.