Location: Newark, NJ | Metro: Newark, 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 | $2,460 |
| 1 Bedroom | $2,780 |
| 2 Bedrooms | $3,350 |
| 3 Bedrooms | $4,180 |
| 4 Bedrooms | $4,780 |
| 5 Bedrooms | $5,545 |
| 6 Bedrooms | $6,210 |
| 7 Bedrooms | $6,707 |
| 8 Bedrooms | $7,042 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,350 | $497,663 | 0.67% | D |
| 3BR | $4,180 | $711,825 | 0.59% | F |
| 4BR | $4,780 | $930,065 | 0.51% | F |
U.S. Census Bureau data (2024)
ZIP code 07927, located in Cedar Knolls, NJ, falls within the Newark, NJ HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 07927 in fiscal year 2024 is set at $2870, while the market rent stands at $3,213. This indicates that the actual rental prices are slightly higher than the government-set FMR, which is common in many areas.
The median home value in 07927 is $742,269, which is notably above the average for the broader Newark, NJ HUD Metro FMR Area. However, the renter share in 07927 is 41.1%, which is also above the typical share for the Newark area. This combination of a high renter share and above-average home values suggests that 07927 is not necessarily a value pocket but rather a mid-tier neighborhood within the larger metro area.
Given that the home values are significantly higher than the FMR, it is less likely to be a primary target for Section 8 tenants seeking affordable housing. However, the high renter share does indicate that there is a substantial portion of the population renting, which could be attractive for landlords looking to manage properties in a desirable location.
To determine if 07927 is a premium sub-market, we must consider both rental and home values. While the home values are high, the FMR and market rent are relatively lower when compared to the home values. This implies that the rental market might be more competitive in terms of affordability, making it a mixed market where both homeownership and rental opportunities exist.
In summary, ZIP 07927 is positioned as a mid-tier neighborhood within the Newark, NJ HUD Metro FMR Area. It offers a balance between higher home values and a significant renter population, making it an interesting option for landlords and small-portfolio investors looking for a blend of potential returns and demand.
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.