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 | $1,920 |
| 1 Bedroom | $2,170 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,270 |
| 4 Bedrooms | $3,740 |
| 5 Bedrooms | $4,338 |
| 6 Bedrooms | $4,859 |
| 7 Bedrooms | $5,248 |
| 8 Bedrooms | $5,510 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,620 | $659,313 | 0.4% | F |
| 3BR | $3,270 | $910,151 | 0.36% | F |
| 4BR | $3,740 | $1,151,320 | 0.32% | F |
| 5BR | $4,338 | $1,454,616 | 0.3% | F |
U.S. Census Bureau data (2024)
New Providence, NJ, located in Union County and identified by ZIP code 07974, stands out among other ZIP codes due to its unique demographic and economic characteristics. With a population of 13,349 residents, only 17.9% of whom are renters, it reflects a predominantly homeowner-oriented community. The median household income of $172,894 places New Providence in a relatively affluent bracket, while the median home value of $987,756 indicates a high-end residential market.
For landlords and small-portfolio investors considering Section 8 housing, the Fair Market Rent (FMR) for ZIP 07974 is set at $2,500 for the fiscal year 2024. This figure is notably higher than the market's ZORI (Zillow Rent Index), which stands at $2,335. This suggests that landlords participating in the Section 8 program can expect to receive slightly above-market rent rates, which can be beneficial in covering the costs associated with maintaining properties in a high-value area.
The data signature for ZIP 07974 points towards a stable market. The low percentage of renters combined with a high median income and home values suggests that the local economy is robust and less likely to experience significant fluctuations. For investors, this stability means that there is a consistent demand for rental properties, especially those that qualify for the Section 8 program, ensuring steady cash flow and a reliable tenant base.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.