Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,870 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,550 |
| 3 Bedrooms | $3,180 |
| 4 Bedrooms | $3,640 |
| 5 Bedrooms | $4,222 |
| 6 Bedrooms | $4,729 |
| 7 Bedrooms | $5,107 |
| 8 Bedrooms | $5,362 |
U.S. Census Bureau data (2024)
The ZIP code 07976 presents an interesting mix of yield and stability factors for real estate investment. With a Fair Market Rent (FMR) of $1,930 for the fiscal year 2024, the rental yield in this area is competitive, especially considering the median home value stands at $1,992,317. This suggests that properties can generate substantial monthly rental income relative to their purchase price.
However, the stability of the market is somewhat compromised. Only 13.9% of residents are renters, indicating a low demand for rental properties. The lack of data on days-on-market (DOM) makes it challenging to assess how quickly properties might be leased. Additionally, the average household income of $247,697 provides some assurance of tenants' ability to pay rent but does not fully compensate for the low percentage of renters.
Given these figures, ZIP 07976 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. While the potential for high rental yields exists due to the relatively high FMR compared to the median home value, the low proportion of renters and uncertain leasing speed suggest a more stable, long-term investment approach would be prudent. Investors should focus on securing reliable tenants and maintaining properties to ensure consistent cash flow over time.
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.