Location: Atlantic City-Hammonton, NJ | Metro: Atlantic City-Hammonton, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,020 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,780 |
| 3 Bedrooms | $3,770 |
| 4 Bedrooms | $4,170 |
| 5 Bedrooms | $4,837 |
| 6 Bedrooms | $5,417 |
| 7 Bedrooms | $5,850 |
| 8 Bedrooms | $6,143 |
U.S. Census Bureau data (2024)
The market analysis for Section 8 investors in ZIP code 08241, part of the Atlantic City-Hammonton, NJ HUD Metro FMR Area, reveals several key points. The HUD Fair Market Rent (FMR) for the area is set at $1,880 per month for fiscal year 2024. This figure is lower than the market rent of $2,031 as reported by the Census ACS, indicating that voucher tenants will generally cashflow marginally at the FMR rate. Landlords should expect to accept slightly less than the typical market rent to accommodate Section 8 tenants.
To further analyze the investment potential, consider the median home value in the area, which stands at $428,842. Using the HUD FMR of $1,880, the rent-to-price ratio can be calculated as follows: $1,880 monthly rent translates to an annual rent of $22,560. Dividing the annual rent by the median home value yields a rent-to-price ratio of approximately 5.26%. This ratio suggests that rental income is relatively modest compared to property values, which could influence the decision-making process for investors considering either renting or buying properties in this area.
Note that the median days on market (DOM) and the percentage of price cuts are not applicable (N/A) in this scenario, as these metrics typically pertain to the sales market rather than the rental market. However, the lack of available data on these points does not detract from the overall analysis of the rental market dynamics.
In conclusion, the strongest investor angle in ZIP 08241 is likely to be stability. Given the consistent demand for affordable housing and the reliable nature of government-backed vouchers, investors can anticipate steady, predictable cash flows despite the slight margin between FMR and market rents. This makes the area particularly attractive for those seeking long-term, stable investments in the rental market.
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.