Location: Atlantic City-Hammonton, NJ | Metro: Atlantic City-Hammonton, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,220 |
| 1 Bedroom | $1,390 |
| 2 Bedrooms | $1,690 |
| 3 Bedrooms | $2,330 |
| 4 Bedrooms | $2,570 |
| 5 Bedrooms | $2,981 |
| 6 Bedrooms | $3,339 |
| 7 Bedrooms | $3,606 |
| 8 Bedrooms | $3,786 |
U.S. Census Bureau data (2024)
The analysis of ZIP 08341, part of the Atlantic City-Hammonton, NJ HUD Metro FMR Area, reveals several key points for landlords and small-portfolio investors.
The first question concerns whether the rent math works. The Fair Market Rent (FMR) for ZIP 08341 in fiscal year 2024 is set at $1430, while the average market rent based on Census ACS data is $988. This indicates that the FMR is significantly higher than what tenants are currently paying in the market. Landlords should be cautious about setting rents at the FMR level, as it may not align with current market conditions and could result in vacancies.
Regarding the affordability of acquisition, the median home value in ZIP 08341 is $301,453. However, the lack of specific data on days on market (DOM) and the percentage of homes requiring price cuts makes it challenging to assess how quickly properties can be sold or the likelihood of needing to lower asking prices. Without these metrics, investors must rely on the median home value alone, which suggests a moderate investment cost relative to other areas in New Jersey.
Tenant demand is strong in ZIP 08341, with a population of 2,101 and 40.3% of residents being renters. This means that nearly half of the local population is actively seeking rental housing, providing a solid base of potential tenants for landlords and investors.
Verdict: While there is a strong tenant demand in ZIP 08341, the current market rent is notably lower than the HUD's Fair Market Rent. Landlords should set their rents closer to the market rate of $988 to attract tenants and avoid prolonged vacancies. The median home value of $301,453 presents a reasonable entry point for investment, but without detailed sales data, caution is advised regarding the time to sell and potential need for price adjustments. Overall, ZIP 08341 offers opportunities for those willing to align their rental pricing with current market conditions and who are prepared for the challenges of property acquisition in this area.
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.