Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,050 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,750 |
| 3 Bedrooms | $3,280 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 07977 in Peapack, NJ, for fiscal year 2024 is set at $2,320. However, the median monthly rent in this area is $1,719, which suggests that voucher tenants would typically generate positive cash flow at the FMR level. This implies that landlords can expect a marginally better performance when renting properties to voucher holders, as the FMR exceeds the market rent.
The median home value in ZIP code 07977 is $1,020,800. Given the median monthly rent of $1,719, the rent-to-price ratio is approximately 0.17%, indicating that rental income is relatively low compared to the value of homes in this area. This suggests that investment strategies in this ZIP code should focus more on long-term stability rather than short-term rental yields.
The data does not provide specific information on the days on market (DOM) or the percentage of price cuts, but given the high median home value and the slightly higher-than-average FMR, the rent-versus-buy dynamics favor owning a home. This is because the cost of renting is significantly lower than the cost of buying, making homeownership less attractive relative to renting.
The strongest investor angle in ZIP code 07977 is likely to be stability. The area's established character, with most homes built before 1940, and the high median home value indicate a stable and desirable location for long-term investments. Additionally, the positive cash flow from Section 8 vouchers provides a reliable source of income for landlords and small-portfolio investors.
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.