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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,350 | $580,252 | 0.58% | F |
| 3BR | $4,180 | $788,937 | 0.53% | F |
| 4BR | $4,780 | $997,161 | 0.48% | F |
| 5BR | $5,545 | $1,156,821 | 0.48% | F |
U.S. Census Bureau data (2024)
The market in ZIP 07936, East Hanover Township, NJ, presents a dynamic scenario that reflects the balance between supply and demand in residential real estate. The Fair Market Rent (FMR) for the area, set at $2,870 for fiscal year 2024, is a benchmark used by the U.S. Department of Housing and Urban Development (HUD) to determine rental assistance payments under the Section 8 program. This figure is notably lower than the Zillow Observed Rent Index (ZORI), which stands at $3,371. This suggests that the market rents are higher than what HUD deems fair, indicating that demand might be outpacing supply.
The median home value in East Hanover Township is $866,760, which is indicative of a robust and potentially growing local economy. High median home values can attract both buyers and renters, further influencing the housing dynamics. However, the lack of data on price-cut share and days on market (DOM) means we cannot definitively conclude whether there's an oversupply or undersupply of homes. These metrics would provide insight into how quickly properties are selling and if sellers are having to reduce their asking prices to facilitate sales.
The renter share in the area is 7.8%, which is relatively low compared to many urban centers. This percentage indicates that a significant portion of the population owns rather than rents their homes. While this may suggest less immediate pressure on rental properties, it also implies a potential long-term housing challenge. As the local economy continues to evolve and attract new residents, the low renter share could increase, putting upward pressure on rental rates and creating opportunities for landlords and small-portfolio investors.
In summary, ZIP 07936 exhibits characteristics of a market where demand is likely strong, given the disparity between the FMR and market rents. The high median home value signals economic vitality, which can support both homeownership and rental markets. Although we lack specific metrics to fully assess the supply-demand balance, the low renter share points towards a stable but evolving housing landscape, with potential for growth in the rental sector as the population changes.
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.