Section 8 Fair Market Rent (FMR) for ZIP 08302 - 2027

Investment Score for ZIP 08302

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,320
1 Bedroom	$1,460
2 Bedrooms	$1,750
3 Bedrooms	$2,410
4 Bedrooms	$2,530
5 Bedrooms	$2,935
6 Bedrooms	$3,287
7 Bedrooms	$3,550
8 Bedrooms	$3,728

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$1,750	$202,932	0.86%	C
3BR	$2,410	$281,205	0.86%	C
4BR	$2,530	$351,862	0.72%	D
5BR	$2,935	$355,066	0.83%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08302 (Bridgeton, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 08302, as set by HUD for 2026, is $1690 for a two-bedroom unit. This represents 31.0% of the median household income in Bridgeton, which stands at $65,516. However, the actual rental market price for a two-bedroom unit is significantly higher, with Zillow reporting a median price of $198,535. The price-to-FMR ratio is 9.8x, indicating that the actual market rent far exceeds the FMR. This means that tenants using Section 8 vouchers face significant constraints when trying to find suitable housing. For instance, a tenant with a two-bedroom voucher would have to pay the difference between the FMR ($1690) and the actual market rent, which can be substantial. If we assume a typical rent of $1690 per month based on FMR, the tenant would still need to cover the remaining amount if the landlord charges more. Given the high price-to-FMR ratio, it’s likely that many landlords will not accept Section 8 vouchers due to the limited reimbursement they receive. #### Affordability & Renter Profile Bridgeton has a population of 47,279, with 41.7% of residents being renters. The occupancy rate is 92.6%, suggesting a relatively tight rental market. With a median household income of $65,516, the affordability of housing is a critical issue. The high price-to-FMR ratio indicates that the market is not particularly affordable for low-income renters, who make up a significant portion of the population. Given that 31.0% of the median income goes towards a two-bedroom unit at FMR, it’s clear that many renters are struggling to afford housing. The median income suggests that households earning less than $65,516 might find it even more challenging to meet their housing needs, especially if they have to pay additional costs beyond the FMR. #### Investor Angle From an investor perspective, the ZIP code 08302 presents a mixed picture. The FMR for a two-bedroom unit is $1690, but the actual market rent is much higher. If an investor were to purchase a property and rent it out at the FMR, they would likely face challenges in generating sufficient cash flow. To illustrate, let’s consider a two-bedroom unit priced at the Zillow median of $198,535. Assuming a conservative annual appreciation rate of 3%, the monthly mortgage payment on a 30-year fixed-rate loan at 5% interest would be approximately $1075. Adding typical expenses such as property taxes (1.5% of the home value), insurance, maintenance, and utilities, the total monthly cost could easily exceed $1690. Therefore, renting at the FMR would not generate positive cash flow. However, if the investor decides to rent the property at the actual market rate, they would likely achieve positive cash flow, but they would also face the challenge of finding tenants willing to pay the higher rent or landlords willing to accept Section 8 vouchers. The high price-to-FMR ratio suggests that the market is not favorable for Section 8-focused investments. #### Specific Actionable Insights 1. **Focus on Affordable Units**: Investors should focus on acquiring units that are closer to the FMR rather than the median market price. For example, a two-bedroom unit priced at around $1690 per month would be more attractive to Section 8 voucher holders. This would require looking for properties that are older or in less desirable locations where the market rent is lower. 2. **Consider Smaller Units**: One-bedroom units have an FMR of $1390, which is lower than the two-bedroom FMR. Investing in smaller units could provide better cash flow opportunities while still catering to the needs of low-income renters. Additionally, the lower FMR might make these units more attractive to landlords accepting Section 8 vouchers. 3. **Evaluate Property Costs**: Before investing, carefully evaluate the total costs associated with owning and maintaining the property. Ensure that the monthly expenses, including mortgage payments, property taxes, insurance, and maintenance, do not exceed the FMR. For instance, a property costing $169,000 would have a monthly mortgage payment of about $925, leaving room for other expenses and potential profit. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 08302 is to **Skip**. The high price-to-FMR ratio and the tight rental market make it difficult to find properties that offer both positive cash flow and acceptance of Section 8 vouchers. While there is a significant number of renters in Bridgeton, the overall market conditions suggest that the area is not conducive to profitable Section 8 investments at this time.

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.