Location: Philadelphia-Camden-Wilmington, PA | Metro: Monmouth-Ocean, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,650 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
U.S. Census Bureau data (2024)
The Section 8 thesis in Tuckerton, NJ (ZIP 08087) is centered around the discrepancy between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR stands at $1930, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $2262. This means that the gap between the FMR and the market rent is $332, representing a 17.2% difference.
Given that the FMR is lower than the market rent, landlords and small-portfolio investors must consider the financial implications of accepting housing vouchers. While the government guarantees payment through the voucher program, it does not cover the full market rent, leading to a loss of potential revenue. In Tuckerton, where the median home value is $412,940 and the median income is $91,677, the decision to accept Section 8 tenants can be seen as a trade-off between guaranteed rental income and the opportunity to charge higher market rents.
The 16.6% of renters in Tuckerton further highlights the importance of understanding the local rental market dynamics. Accepting Section 8 tenants could stabilize occupancy rates, especially in a market where a significant portion of residents are already dependent on rental assistance programs. However, the cost of housing voucher tenants below open-market rates should be carefully weighed against the benefits of maintaining a steady stream of income.
To summarize, the FMR of $1930 is $332 less than the market rent of $2262, which represents a 17.2% discount. This gap makes Tuckerton a challenging environment for landlords who might prefer to rent at market rates but must decide whether the guaranteed income from Section 8 vouchers justifies the lower rental rate.
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.