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 | $1,470 |
| 1 Bedroom | $1,630 |
| 2 Bedrooms | $2,010 |
| 3 Bedrooms | $2,580 |
| 4 Bedrooms | $2,850 |
| 5 Bedrooms | $3,306 |
| 6 Bedrooms | $3,703 |
| 7 Bedrooms | $3,999 |
| 8 Bedrooms | $4,199 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,580 | $499,426 | 0.52% | F |
| 4BR | $2,850 | $691,481 | 0.41% | F |
U.S. Census Bureau data (2024)
ZIP 08092, located in the Monmouth-Ocean HUD Metro FMR Area of New Jersey, presents a unique opportunity within a Section 8 portfolio strategy. This area is best categorized as a cash-flow anchor. The rationale behind this classification is the significant disparity between the Fair Market Rent (FMR) set at $1850 for fiscal year 2024 and the current market rent of $1198. This spread indicates that landlords can potentially receive higher rental income through Section 8 vouchers compared to the prevailing market rates.
The median home value in ZIP 08092 is $513,019, which is indicative of a relatively affluent neighborhood. However, the median income of $110,509 does not necessarily translate into high market rents, suggesting that there might be a segment of the population benefiting from subsidized housing. This scenario is favorable for landlords looking to stabilize their cash flows, as they can rely on consistent government payments that exceed typical market rents.
A cash-flow anchor is crucial in any investment portfolio, especially when dealing with fluctuating market conditions. ZIP 08092 offers a secure and predictable source of income due to the guaranteed nature of Section 8 payments. Landlords should focus on properties that qualify for the higher FMR rate to maximize their returns. This strategy ensures that even if market rents decline, the income from Section 8 tenants remains stable and above average.
While ZIP 08092 does not present an immediate appreciation play or a high diversification potential due to limited data on price-cut shares and days on market (DOM), the primary benefit lies in its ability to provide a steady stream of cash flow. The 10.2% renter share suggests that a significant portion of the population is already renting, making it easier for landlords to attract Section 8 tenants and maintain occupancy rates.
In conclusion, ZIP 08092 is most effectively utilized as a cash-flow anchor within a Section 8 portfolio strategy. The substantial difference between the FMR and market rent provides landlords with a reliable and above-average income source, safeguarding their financial stability in a potentially volatile real estate market.
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.