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 | $1,580 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,160 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 4BR | $3,080 | $908,420 | 0.34% | F |
U.S. Census Bureau data (2024)
The ZIP code 07980, with a median household income of $162,955, presents an interesting scenario when it comes to housing affordability. The market rate for rent stands at $1,399 according to the latest Census ACS data. This figure suggests that the majority of households in this area could comfortably afford the market rate without significant financial strain.
In contrast, the Fair Market Rent (FMR) as determined for ZIP 07980 in fiscal year 2024 is set at $2,120. This higher figure represents the maximum amount that the Housing Choice Voucher program, commonly known as Section 8, will pay for a rental unit in this area. Given the discrepancy between the market rate ($1,399) and the FMR ($2,120), landlords who accept vouchers could potentially receive a higher rent payment compared to the average market rate.
The ZIP code has a population of 2,675, with 22.0% of residents being renters. This relatively low percentage of renters indicates a competitive market for landlords, as there are fewer tenants relative to the total population. However, the disparity between the median income and the market rate also points to a possible surplus of affordable rental units, which could further intensify competition among landlords.
The takeaway for landlords considering their strategy on whether to accept vouchers or focus on cash-paying tenants is clear. While the voucher payment standard is significantly higher than the current market rate, landlords should weigh the administrative complexity and potential delays associated with voucher programs against the benefits of attracting tenants who can pay the full market rate without subsidy. In ZIP 07980, the ability to charge closer to the FMR of $2,120 can be a lucrative option, especially if the demand for subsidized housing outpaces the supply.
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.