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 | $1,870 |
| 1 Bedroom | $1,880 |
| 2 Bedrooms | $2,300 |
| 3 Bedrooms | $3,010 |
| 4 Bedrooms | $3,020 |
| 5 Bedrooms | $3,503 |
| 6 Bedrooms | $3,923 |
| 7 Bedrooms | $4,237 |
| 8 Bedrooms | $4,449 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,300 | $757,809 | 0.3% | F |
| 3BR | $3,010 | $1,010,661 | 0.3% | F |
| 4BR | $3,020 | $1,590,542 | 0.19% | F |
| 5BR | $3,503 | $1,927,389 | 0.18% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP 08243, Sea Isle City, NJ, are defined by the Specific Area Fair Market Rent (SAFMR) for a two-bedroom unit, which is set at $1980 for fiscal year 2024. This SAFMR figure is specific to this ZIP code, reflecting the unique rental market conditions of Sea Isle City.
A Section 8 voucher operates under a formula where the tenant pays approximately 30% of their adjusted income towards rent, while the remaining amount is covered by the Housing Choice Voucher program. For example, if a tenant's adjusted monthly income is $1600, they would pay $480 towards rent. The voucher would then cover the difference between the tenant's payment and the SAFMR, up to the limit of $1980.
In addition to covering rent, the voucher also includes utility allowances. These allowances vary but typically add around $200-$300 to the total reimbursement. Therefore, if we assume an average utility allowance of $250, the total reimbursement for a landlord would be the tenant's contribution plus the utility allowance and the voucher's share of the rent.
To illustrate, if a landlord charges $1980 for a two-bedroom unit, and the tenant pays $480, the voucher program would pay $1500 ($1980 - $480) plus the utility allowance of $250, totaling $1750. This leaves the landlord with a reimbursement gap of $230 ($1980 - $1750).
The reimbursement gap or surplus depends on the actual rent charged compared to the SAFMR. If the landlord charges less than $1980, the gap would be smaller or potentially a surplus. However, based on the SAFMR of $1980, landlords should expect a reimbursement gap when renting a two-bedroom unit at the maximum allowable rate.
Note that the local market rent is currently unavailable, making it difficult to compare the SAFMR against prevailing market rates. However, the SAFMR serves as the benchmark for determining the maximum rent a landlord can charge for a Section 8 tenant in ZIP 08243.
In summary, landlords in ZIP 08243 can expect a reimbursement gap of $230 per month for a two-bedroom unit when charging the maximum SAFMR rate of $1980. This analysis provides a clear picture of the financial dynamics involved in accepting Section 8 tenants, helping landlords make informed decisions about their rental properties.
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.