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 |
|---|---|---|---|---|
| 1BR | $2,780 | $257,336 | 1.08% | B |
| 2BR | $3,350 | $494,873 | 0.68% | D |
| 3BR | $4,180 | $716,864 | 0.58% | F |
| 4BR | $4,780 | $891,746 | 0.54% | F |
| 5BR | $5,545 | $1,051,828 | 0.53% | F |
U.S. Census Bureau data (2024)
The ZIP code 07950, encompassing Morris Plains, NJ, and part of the Newark, NJ HUD Metro FMR Area, presents a unique opportunity within a Section 8 portfolio strategy. It serves best as an appreciation play due to its low price-cut share and non-existent day DOM (Days on Market).
To understand why this area is suitable for appreciation, consider the financial metrics. The Fair Market Rent (FMR) for ZIP 07950 in fiscal year 2024 is set at $2870, whereas the market rent stands at $3,575. This indicates that there's a potential for rental rates to increase, aligning with the market trend. Additionally, the median home value of $717,316 suggests a robust housing market, which typically correlates with property value appreciation.
The 0.1% price-cut share is indicative of minimal competition among sellers, implying that properties are likely to retain their value without needing to be discounted. Furthermore, the N/A-day DOM means that listings in this area do not linger on the market, suggesting strong demand and quick sales, which are key indicators of a healthy real estate market.
While the 24.7% renter share and median income of $153,762 are noteworthy, they do not overshadow the primary characteristic of this ZIP code as an appreciation play. These factors contribute to a stable tenant base but do not significantly impact the core strategy of capital appreciation.
In summary, ZIP 07950 offers landlords and small-portfolio investors a solid foundation for an appreciation-focused strategy, given its favorable market conditions and strong property values. The slight disparity between FMR and market rents also provides a buffer for potential increases in rental prices, further enhancing the attractiveness of this area for long-term investment.
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.