Location: Atlantic City-Hammonton, NJ | Metro: Atlantic City-Hammonton, 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 | $1,300 |
| 1 Bedroom | $1,480 |
| 2 Bedrooms | $1,790 |
| 3 Bedrooms | $2,430 |
| 4 Bedrooms | $2,690 |
| 5 Bedrooms | $3,120 |
| 6 Bedrooms | $3,494 |
| 7 Bedrooms | $3,774 |
| 8 Bedrooms | $3,963 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,790 | $411,649 | 0.43% | F |
| 3BR | $2,430 | $462,964 | 0.52% | F |
| 4BR | $2,690 | $514,227 | 0.52% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 08244, which encompasses Somers Point, NJ, and falls under the Atlantic City-Hammonton, NJ HUD Metro FMR Area, is set at $1,620 for fiscal year 2024. This figure represents the maximum amount that a landlord can charge for a unit under the Section 8 program. In comparison, the market rent for the same area, as reported by the Census American Community Survey (ACS), stands at $1,345. This indicates that landlords participating in the Section 8 program can expect to cashflow positively at the HUD FMR rate, as it exceeds the typical market rent.
To further analyze the investment potential, consider the median home value in the area, which is $418,853. Using this figure, we can calculate the rent-to-price ratio. The annual rent of $16,200 (based on the HUD FMR) divided by the median home value yields a rent-to-price ratio of approximately 3.87%. This suggests that rental income could be a significant portion of the total value of a property, making it an attractive option for investors looking to generate steady passive income.
The dynamics between renting and buying in this market also play a role in investment strategy. With a median Days on Market (DOM) of N/A and a negligible 0.1% share of homes experiencing price cuts, it's clear that the housing market in Somers Point is stable. This stability supports the idea that both rental and homeownership markets are predictable and less volatile, providing a secure environment for long-term investments.
In conclusion, the strongest investor angle in ZIP code 08244 is cashflow. Landlords can benefit from positive cashflow due to the higher HUD FMR compared to market rent, while the stable housing market ensures a reliable and predictable investment environment.
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.