Location: Cape May County, NJ | Metro: Cape May County, 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 | $1,650 |
| 1 Bedroom | $1,660 |
| 2 Bedrooms | $2,030 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $2,670 |
| 5 Bedrooms | $3,097 |
| 6 Bedrooms | $3,469 |
| 7 Bedrooms | $3,747 |
| 8 Bedrooms | $3,934 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,030 | $338,150 | 0.6% | D |
| 3BR | $2,660 | $484,126 | 0.55% | F |
| 4BR | $2,670 | $604,133 | 0.44% | F |
| 5BR | $3,097 | $746,939 | 0.41% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 08210, which includes Cape May Court House, NJ, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) for FY 2024 is set at $1720. This figure is specific to this ZIP code, reflecting the localized cost of renting. In contrast, the local market rent, based on Census ACS data, averages around $1525.
A landlord participating in the Section 8 program receives reimbursement for the difference between the market rent and the SAFMR, plus any additional utility allowances. However, it's important to understand that the tenant is responsible for paying a portion of the rent, typically 30% of their income. The voucher then covers the remaining amount up to the SAFMR limit.
To illustrate, if a tenant's share of the rent is $500, the voucher would cover the rest, up to the SAFMR of $1720. Thus, the total reimbursement to the landlord would be $1220. If the market rent is higher than the SAFMR, the landlord must reduce the rent to meet the voucher limit. Conversely, if the market rent is lower than the SAFMR, the landlord can charge the higher SAFMR rate, but only up to the maximum of $1720.
In ZIP 08210, where the market rent is below the SAFMR, landlords can charge closer to the SAFMR rate. This means they can potentially receive a higher reimbursement compared to the local market average. The typical reimbursement gap or surplus for a two-bedroom unit here is a positive $195 per month, indicating that landlords could see a slight surplus when charging the SAFMR rate.
This surplus comes from the difference between the local market rent of $1525 and the SAFMR of $1720. It's a benefit for landlords who might otherwise be concerned about receiving less than the market value for their units. By participating in the Section 8 program, landlords ensure steady, government-backed payments while maintaining competitive rates in their local 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.