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 | $2,180 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $2,960 |
| 3 Bedrooms | $3,620 |
| 4 Bedrooms | $4,110 |
| 5 Bedrooms | $4,768 |
| 6 Bedrooms | $5,340 |
| 7 Bedrooms | $5,767 |
| 8 Bedrooms | $6,055 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,960 | $554,162 | 0.53% | F |
| 3BR | $3,620 | $844,323 | 0.43% | F |
| 4BR | $4,110 | $1,071,087 | 0.38% | F |
| 5BR | $4,768 | $1,349,410 | 0.35% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP 07922 (Berkeley Heights, NJ) for Section 8 properties, follow these steps:
Step 1: Does the Fair Market Rent (FMR) of $2,870 cover the debt service on a $928,743 property?
No. The FMR of $2,870 would not be sufficient to cover the debt service on a property valued at $928,743. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. For a property of this value, the monthly debt service would likely exceed the FMR amount.
Step 2: Is the market rent ($3,457 ZORI) above, at, or below the FMR?
The market rent is above the FMR. At $3,457, the market rent exceeds the FMR of $2,870 by $587 per month. This indicates that landlords could potentially earn more from market rents than from Section 8 rents.
Step 3: Are there enough renters to support demand? Consider the 7.3% rental rate and the N/A-day days on market (DOM).
It depends. With only 7.3% of the population renting, the demand for rental properties in Berkeley Heights, NJ, is relatively low. Additionally, the lack of specific data on days on market (DOM) makes it difficult to assess how quickly rental units are being filled. However, the high market rent suggests that those who do rent might be willing to pay above the FMR, indicating some level of demand.
Decision Tree Summary:
In conclusion, based on the provided data, ZIP 07922 (Berkeley Heights, NJ) is not an ideal location for Section 8 investments due to the low rental rate and the inability of FMR to cover debt service. Landlords should focus on other opportunities where FMR better aligns with property values and where there is a higher demand for rental housing.
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.