Location: Cape May County, NJ | Metro: Cape May County, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,470 |
| 1 Bedroom | $1,470 |
| 2 Bedrooms | $1,800 |
| 3 Bedrooms | $2,350 |
| 4 Bedrooms | $2,360 |
| 5 Bedrooms | $2,738 |
| 6 Bedrooms | $3,067 |
| 7 Bedrooms | $3,312 |
| 8 Bedrooms | $3,478 |
U.S. Census Bureau data (2024)
In ZIP code 08242, the economics of Section 8 housing are defined by the SAFMR (Small Area Fair Market Rent) set specifically for this ZIP. For a two-bedroom apartment, the SAFMR for FY 2024 is $1500. This is higher than the local market rent, which averages at $1,305 according to Census ACS data.
A landlord participating in the Section 8 program receives payments based on the SAFMR, not the lower local market rent. The voucher payment structure includes the tenant's portion and utility allowances. Typically, tenants contribute 30% of their adjusted income towards rent, while the remainder is covered by the voucher. Utility allowances vary but generally cover the cost of utilities up to a certain amount, which is determined by the Housing Authority.
To illustrate, if a tenant's adjusted income is $1,000 per month, they would pay $300 toward rent, leaving the remaining $1,200 to be covered by the voucher. However, since the SAFMR for a two-bedroom unit in ZIP 08242 is $1500, the voucher will reimburse the landlord the difference between the tenant's contribution and the SAFMR rate, ensuring the landlord receives the full $1500 regardless of the actual market rent.
The typical reimbursement gap or surplus in ZIP 08242 can be calculated as follows: Given a SAFMR of $1500 and a local market rent of $1,305, landlords would see a surplus of $195 per month on average when renting a two-bedroom unit to a Section 8 tenant. This surplus arises because the voucher pays the higher SAFMR rate, which exceeds the typical local market rent.
This economic dynamic benefits landlords who participate in the Section 8 program within ZIP 08242, as they receive a rate that is above the prevailing local market conditions. It also ensures that the rental income is stable and reliable, as it is tied to the government-set SAFMR rather than fluctuating market rates.
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.