Section 8 Fair Market Rent (FMR) for ZIP 08234 - 2027

Investment Score for ZIP 08234

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,490
1 Bedroom	$1,690
2 Bedrooms	$2,050
3 Bedrooms	$2,780
4 Bedrooms	$3,080
5 Bedrooms	$3,573
6 Bedrooms	$4,002
7 Bedrooms	$4,322
8 Bedrooms	$4,538

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,690	$163,130	1.04%	B
2BR	$2,050	$225,336	0.91%	C
3BR	$2,780	$387,002	0.72%	D
4BR	$3,080	$514,723	0.6%	F
5BR	$3,573	$560,792	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08234 (Egg Harbor Township, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Egg Harbor Township, NJ, as of 2026, provide a benchmark for rental costs that are eligible under the Section 8 housing assistance program. For a two-bedroom unit, the FMR is set at $2,040, which represents 24.9% of the median household income in the area. This suggests that while the FMR is relatively high compared to other areas, it still falls within a reasonable range for affordability based on local income levels. However, comparing the FMR to actual rents reveals some interesting dynamics. The Zillow median price for a two-bedroom home in Egg Harbor Township is $220,903. Given the price-to-FMR ratio of 9.0x, it is clear that the median home price is significantly higher than the median rent. This implies that landlords might be inclined to charge rents above the FMR to maximize returns on their investments. For instance, if a landlord charges $2,200 for a two-bedroom unit, a voucher holder would only be able to cover $2,040, leaving them to pay the remaining $160 out-of-pocket. This could pose a significant challenge for low-income families relying solely on vouchers. #### Affordability & Renter Profile The population of Egg Harbor Township is 47,339, with 15.3% being renters. This indicates that the majority of residents own their homes, suggesting a potentially less competitive rental market. However, the occupancy rate of 95.3% points to a very tight rental market, where almost all available units are occupied. This tightness can drive up rental prices, making it difficult for renters to find affordable options. Given the median household income of $98,217, the rental market appears to be somewhat balanced, but the high FMR for larger units (like three-bedroom and four-bedroom homes) could make it challenging for families with lower incomes to secure housing through Section 8 vouchers. The FMR for a three-bedroom unit is $2,830, and for a four-bedroom unit, it is $3,110. These figures represent a substantial portion of the median income, indicating that the market may be less favorable for families requiring larger units. #### Investor Angle From an investor perspective, the ZIP code 08234 offers both opportunities and challenges. The high FMRs suggest that landlords can potentially achieve good cash flows by renting properties at these rates. However, the tight rental market and the high price-to-FMR ratio indicate that competition for tenants might be fierce, especially for those who can afford to pay more than the FMR. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with property ownership. Assuming a conservative estimate of operating expenses (including maintenance, insurance, taxes, and utilities) at around 40% of the rental income, the net income from a two-bedroom unit rented at $2,040 would be approximately $1,224 per month. This figure needs to be compared against the mortgage payment, which would depend on the purchase price and interest rate. If the purchase price is close to the Zillow median of $220,903, and assuming a 30-year fixed-rate mortgage at an average interest rate of 5%, the monthly mortgage payment would be roughly $1,150. Thus, the net cash flow would be positive at about $74 per month. In terms of investment grade, the high occupancy rate and the relatively high FMR suggest that the risk of vacancy is low. However, the high price-to-FMR ratio indicates that the market is not entirely driven by Section 8 vouchers, and investors should be prepared to compete with non-voucher tenants willing to pay more. Overall, the investment grade would be considered moderate to good, given the balance between rental demand and the ability to generate positive cash flow. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high FMR for larger units, investors should focus on smaller units like one-bedroom and two-bedroom apartments. These units have lower FMRs ($1,680 and $2,040 respectively), making them more accessible to voucher holders. Additionally, the demand for smaller units tends to be more stable, reducing the risk of vacancy. 2. **Consider Location-Specific Factors**: While the overall market appears tight, certain neighborhoods within Egg Harbor Township may offer better opportunities for Section 8-focused investors. Areas with higher concentrations of renters or lower median home prices could provide more affordable options for voucher holders, leading to higher occupancy rates and better cash flows. 3. **Prepare for Out-of-Pocket Payments**: Landlords should be aware that voucher holders may need to contribute additional funds beyond what the voucher covers. For example, a three-bedroom unit rented at $2,830 would require the tenant to pay $790 out-of-pocket if the voucher only covers $2,040. This can impact the overall attractiveness of the property to potential tenants and should be factored into pricing strategies. #### Bottom Line For Section 8-focused investors, Egg Harbor Township presents a mixed picture. The high FMRs and tight rental market suggest strong demand for affordable housing, but the high price-to-FMR ratio indicates that competition from non-voucher tenants is significant. Investors should focus on smaller units and be prepared to adjust their pricing strategies to accommodate out-of-pocket payments from voucher holders. Based on the data provided, the recommendation for Section 8-focused investors is to **Hold**. While there are opportunities to generate positive cash flow, the market dynamics and the high cost of entry make it advisable to maintain existing investments rather than aggressively expand into new properties.

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.