Location: Newark, NJ | Metro: Middlesex-Somerset-Hunterdon, 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 | $2,520 |
| 1 Bedroom | $2,720 |
| 2 Bedrooms | $3,390 |
| 3 Bedrooms | $4,040 |
| 4 Bedrooms | $4,540 |
| 5 Bedrooms | $5,266 |
| 6 Bedrooms | $5,898 |
| 7 Bedrooms | $6,370 |
| 8 Bedrooms | $6,689 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,720 | $346,946 | 0.78% | D |
| 2BR | $3,390 | $485,912 | 0.7% | D |
| 3BR | $4,040 | $836,077 | 0.48% | F |
| 4BR | $4,540 | $1,270,508 | 0.36% | F |
| 5BR | $5,266 | $1,684,663 | 0.31% | F |
U.S. Census Bureau data (2024)
3040 is the Fair Market Rent (FMR) for ZIP code 07920, Basking Ridge, NJ, as set for fiscal year 2024. This figure represents the upper limit for rental housing payments made through the Section 8 program. In comparison, the Zillow Observed Rental Index (ZORI) stands at 3075, indicating that market rents slightly exceed the FMR, which could present an opportunity for landlords participating in the program. The median home value in Basking Ridge is 916436, suggesting a relatively affluent area where homeownership is common. However, only 16.4% of residents are renters, highlighting the limited demand for rental properties in this zip code. The median income of 192857 supports the notion of an economically stable area, but it also implies that many residents might prefer to buy rather than rent. Unfortunately, the data does not provide a specific average number of days on the market (DOM), nor does it specify a percentage of homes that have been listed for N/A days, which would be useful for understanding the local real estate market dynamics. The price-cut share is notably low at 0.1%, indicating that homes in Basking Ridge rarely need to be discounted to sell. Given these figures, landlords and small-portfolio investors should carefully consider the local rental market's saturation and the potential for higher returns outside the Section 8 program. However, for those interested in providing affordable housing options, the slight premium over FMR in market rents suggests a viable business model. Verdict: Basking Ridge offers a stable, though competitive, environment for landlords, with limited Section 8 participation due to high median incomes and home values.
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.