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 | $1,950 |
| 1 Bedroom | $1,970 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $3,140 |
| 4 Bedrooms | $3,150 |
| 5 Bedrooms | $3,654 |
| 6 Bedrooms | $4,092 |
| 7 Bedrooms | $4,419 |
| 8 Bedrooms | $4,640 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,140 | $493,239 | 0.64% | D |
| 4BR | $3,150 | $637,458 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 08230 represents a suburban area with a relatively small population of 5,700 residents. The neighborhood is predominantly owned, with only 5.1% of the population being renters. This indicates a community where homeownership is valued highly, with a median home value of $473,314. The median household income in this area is strong at $115,152, suggesting a robust local economy capable of supporting higher living costs.
From an investment perspective, the rental economics present a mixed picture. The Fair Market Rent (FMR) for the area, which is set at $1,480 per month for the fiscal year 2024, is notably lower than the actual market rent reported by the Census Bureau's American Community Survey (ACS), which stands at $1,864 per month. This discrepancy implies that landlords could potentially benefit from a higher rent differential, but it also suggests a challenge in attracting tenants who qualify for Section 8 vouchers due to the relatively low number of renters in the area.
Given these conditions, ZIP 08230 would likely be better suited for a hands-on value-add buyer rather than a hands-off voucher operator. The limited pool of potential Section 8 tenants combined with the higher market rents means that a landlord must actively manage properties to ensure occupancy. A value-add strategy, focusing on property improvements to command higher rents or attract a broader range of tenants, including those with vouchers, could be more effective. Alternatively, targeting non-voucher tenants who can afford the market rate of $1,864 per month might provide a steadier stream of income.
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.