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 | $2,180 |
| 1 Bedroom | $2,380 |
| 2 Bedrooms | $2,940 |
| 3 Bedrooms | $3,540 |
| 4 Bedrooms | $3,990 |
| 5 Bedrooms | $4,628 |
| 6 Bedrooms | $5,183 |
| 7 Bedrooms | $5,598 |
| 8 Bedrooms | $5,878 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,540 | $755,545 | 0.47% | F |
| 4BR | $3,990 | $1,026,664 | 0.39% | F |
U.S. Census Bureau data (2024)
The market in ZIP code 07946 presents a dynamic landscape that is indicative of shifting housing pressures. With a Fair Market Rent (FMR) set at $2870 for fiscal year 2024, the area demonstrates a significant gap between the government-subsidized rental rates and the actual market conditions, as the current market rent is not available. This suggests that the market rent could be higher, reflecting a potential scenario where demand is outpacing supply.
The median home value in ZIP 07946 stands at $880,954, which is notably high and points towards a robust real estate market. However, without specific data on the percentage of homes listed for price cuts or days on the market (DOM), it's challenging to definitively state whether there is an excess of supply over demand. The absence of these metrics implies stability or a lack of distressed sales, which could mean a balanced market or one slightly favoring sellers.
A key indicator of long-term housing pressure is the 5.5% renter share in the area. This relatively low figure suggests that homeownership is prevalent, which can reduce immediate rental demand but also indicates a potential for future rental pressure if the population grows or economic conditions change. As the number of renters increases, so does the pressure on the rental market, potentially leading to higher rents and increased competition among tenants.
In conclusion, ZIP 07946 appears to be a market with strong underlying values and a rental sector that is likely under pressure due to the disparity between FMR and implied market rent. The high median home value and low renter share suggest a stable homeownership environment, but caution must be exercised as changes in the local economy or demographics could alter this balance.
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.