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 | $1,880 |
| 1 Bedroom | $2,130 |
| 2 Bedrooms | $2,570 |
| 3 Bedrooms | $3,210 |
| 4 Bedrooms | $3,670 |
| 5 Bedrooms | $4,257 |
| 6 Bedrooms | $4,768 |
| 7 Bedrooms | $5,149 |
| 8 Bedrooms | $5,406 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,210 | $763,633 | 0.42% | F |
| 4BR | $3,670 | $1,069,003 | 0.34% | F |
| 5BR | $4,257 | $1,442,265 | 0.3% | F |
U.S. Census Bureau data (2024)
Skeptical investors considering ZIP 07930 might have several valid concerns regarding the feasibility of investing in properties under the Section 8 program. Let's address these concerns with the available data.
Objection 1: Will Fair Market Rent (FMR) of $2260 cover the mortgage on a $907,029 home?
The FMR of $2260 in ZIP 07930 for fiscal year 2024 is a crucial metric for determining rental assistance payments. However, it does not directly correlate with the ability to cover a mortgage on a property valued at $907,029. The mortgage payment depends on the interest rate and loan terms. Assuming a standard 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly principal and interest payment would be approximately $4850. This means that the FMR alone would not cover the mortgage costs, leaving a significant gap of nearly $2590 per month. Investors should consider additional income sources such as private market rents or explore lower-cost properties to align with the FMR.
Objection 2: Is there enough renter demand at 6.5%?
ZIP 07930 has a rental vacancy rate of 6.5%. While this rate suggests some level of competition among landlords, it also indicates that there is sufficient demand for rental units. A vacancy rate below 7% typically signifies a balanced market where landlords can find tenants without excessive difficulty. However, the data does not provide detailed insights into the specific demand for Section 8 rental units. To fully assess the viability, investors would need to look at local tenant preferences and the number of eligible households seeking rental assistance.
Objection 3: Will vouchers keep pace with market rents of $1653?
The FMR of $2260 is designed to reflect the average rent for a moderate-quality dwelling in the area. If the market rent is $1653, the voucher amount is likely to cover the majority of the rent, but not exceed it. It is important to note that the voucher amount is adjusted annually based on changes in the FMR. Therefore, if market rents rise faster than the FMR, landlords might face a shortfall. Conversely, if the FMR increases in line with or above market rents, the voucher will continue to provide adequate coverage. Monitoring both the FMR and local market rent trends is essential for maintaining financial stability in Section 8 investments.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.