Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,520 |
| 1 Bedroom | $2,720 |
| 2 Bedrooms | $3,390 |
| 3 Bedrooms | $4,040 |
| 4 Bedrooms | $4,540 |
| 5 Bedrooms | $5,266 |
| 6 Bedrooms | $5,898 |
| 7 Bedrooms | $6,370 |
| 8 Bedrooms | $6,689 |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 07939 in the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area for fiscal year 2024 is set at $3040. This figure represents the maximum amount that voucher holders can pay toward their monthly rent, including utilities, under the Section 8 program. However, due to the lack of specific market rent data for ZIP 07939, it's challenging to make a direct comparison between the HUD FMR and the actual rental prices in the area.
Based on the available HUD FMR, landlords and small-portfolio investors can expect that voucher tenants will cashflow at or near the FMR level, assuming they have units priced at the market rate. In areas where the market rents exceed the HUD FMR, landlords might find that cashflowing with Section 8 tenants is marginal unless they have premium units that justify higher rents. Conversely, if market rents are below the FMR, there could be a potential for positive cashflow with Section 8 tenants.
The median home value in ZIP 07939 is currently not available, which makes deriving an exact rent-to-price ratio difficult. Nevertheless, the rent-to-price ratio can provide insights into the local housing market's health and whether renting or buying is more advantageous. If the median home values were known, a high rent-to-price ratio would suggest that rental properties are more profitable relative to homeownership, while a low ratio might indicate that buying is a better investment.
Additionally, the median days on market (DOM) and the percentage of homes that experience price cuts are not provided for ZIP 07939. These metrics can help understand the dynamics between renting and buying. A high DOM or a significant share of price cuts can signal a slower sales market, potentially making rentals a more attractive option for investors.
In conclusion, for Section 8 investors targeting ZIP 07939, the strongest angle is likely stability. Given the fixed nature of HUD FMRs and the consistent demand for affordable housing, investing in properties that align with these parameters offers a reliable income stream with less risk compared to other investment strategies.
Data Sources: FMR data from HUD (2027). 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.