Location: Monmouth-Ocean, NJ | Metro: Monmouth-Ocean, 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 | $1,790 |
| 1 Bedroom | $1,970 |
| 2 Bedrooms | $2,440 |
| 3 Bedrooms | $3,130 |
| 4 Bedrooms | $3,460 |
| 5 Bedrooms | $4,014 |
| 6 Bedrooms | $4,496 |
| 7 Bedrooms | $4,856 |
| 8 Bedrooms | $5,099 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,440 | $462,969 | 0.53% | F |
| 3BR | $3,130 | $493,033 | 0.63% | D |
| 4BR | $3,460 | $613,706 | 0.56% | F |
| 5BR | $4,014 | $713,061 | 0.56% | F |
U.S. Census Bureau data (2024)
To decide whether to invest in ZIP 08005 (Barnegat, NJ) for Section 8 properties, follow these steps:
If the debt service is higher than $2090 per month, then the answer is No. The FMR does not sufficiently cover the monthly mortgage payments, making it financially unviable.
If the debt service is lower than or equal to $2090 per month, proceed to Step 2.
If the ZORI is above the FMR, then the answer is It Depends. While the market rent is higher, the Section 8 program will only pay up to the FMR. This means that landlords might not be able to charge the full market rent, but they can still benefit from the stability and security of Section 8 tenants.
If the ZORI is at or below the FMR, then the answer is Yes. The market rent aligns with or is lower than what the Section 8 program pays, ensuring that the rental income meets the FMR without leaving any gap.
The ZIP code has a 11.4% renter population and an average Days on Market (DOM) of 19 days. These figures indicate a relatively low renter base but quick turnover once a property is listed. If the quick turnover is due to high demand and competitive pricing, then the answer is Yes.
However, if the quick turnover is driven by low demand and frequent price reductions, then the answer is No. The combination of a low renter population and the need to reduce prices frequently would make it difficult to maintain profitability.
In conclusion, the viability of purchasing a property in ZIP 08005 for Section 8 investment hinges on the alignment between FMR and debt service, the relationship between market rent and FMR, and the strength of the local rental market based on the percentage of renters and DOM.
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.