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 | $2,320 |
| 1 Bedroom | $2,490 |
| 2 Bedrooms | $3,110 |
| 3 Bedrooms | $3,710 |
| 4 Bedrooms | $4,160 |
| 5 Bedrooms | $4,826 |
| 6 Bedrooms | $5,405 |
| 7 Bedrooms | $5,837 |
| 8 Bedrooms | $6,129 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,710 | $740,099 | 0.5% | F |
| 4BR | $4,160 | $1,125,260 | 0.37% | F |
| 5BR | $4,826 | $1,949,927 | 0.25% | F |
U.S. Census Bureau data (2024)
The ZIP code 07924 presents several challenges for landlords considering Section 8 investments. Tenant turnover is a significant concern, with the market rent at $2,297 being notably lower than the Fair Market Rent (FMR) of $2,520 for FY 2024. This gap suggests that tenants might be more inclined to move when they find better rental deals, increasing the frequency of turnovers and associated costs.
Vacancy exposure is another issue. The average days on market (DOM) is currently unavailable, which indicates an uncertainty about how quickly properties can be rented out. This lack of data makes it difficult to predict vacancy rates and the potential financial impact on rental income.
Deferred maintenance is also a risk factor. With a typical home value of $996,539 and a median income of $236,042, residents have substantial assets but limited disposable income to cover unexpected repairs and maintenance. Landlords must ensure they set aside adequate funds for upkeep, as these costs can quickly erode profit margins.
However, these risks are somewhat mitigated by the high concentration of renters in the area, with 5.6% of the population being renters. High renter density often translates into higher demand for housing vouchers, which can stabilize occupancy rates and provide a steady stream of tenants.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 07924 is moderate.
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.