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 | $1,670 |
| 1 Bedroom | $1,680 |
| 2 Bedrooms | $2,050 |
| 3 Bedrooms | $2,680 |
| 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: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,050 | $363,542 | 0.56% | F |
| 3BR | $2,680 | $462,858 | 0.58% | F |
| 4BR | $2,690 | $566,692 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 08251, located in Villas, NJ, presents a mixed profile when it comes to yield and stability for real estate investments, particularly for those interested in Section 8 properties.
On the yield axis, the Fair Market Rent (FMR) for FY 2024 stands at $1700, while the average market rent is slightly higher at $1722. Given the median home value of $396,962, the rental yield appears modest. To calculate the potential yield, we can use the FMR as a proxy for monthly income. Assuming an annual income of $20,400 ($1700 x 12), the yield would be approximately 5.14% ($20,400 / $396,962).
Moving to the stability axis, the ZIP code has a relatively low percentage of renters at 11.1%. This figure suggests that the area might have a strong owner-occupied housing market, which could reduce the demand for rentals. The lack of data on days on market (DOM) makes it difficult to assess the turnover rate of rental properties. However, the median household income of $83,637 indicates a stable economic base, which could support consistent rental payments.
To determine whether this is a high-yield/low-stability flip-style market or a steady-cashflow zone, we need to consider the yield and stability metrics together. With a yield of 5.14%, this ZIP code does not offer particularly high returns compared to other markets. The low percentage of renters and the absence of DOM data suggest some instability in the rental market. Yet, the solid median income provides a foundation for steady cash flow.
Based on these figures, ZIP 08251 leans towards being a steady-cashflow zone rather than a high-yield/low-stability market. While the yield is not exceptionally high, the likelihood of default is reduced due to the stable income levels. Landlords and small-portfolio investors should weigh the moderate returns against the lower risk of tenant defaults.
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.