Location: Atlantic City-Hammonton, NJ | Metro: Atlantic City-Hammonton, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,240 |
| 1 Bedroom | $1,400 |
| 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 for Section 8 real estate in ZIP code 08350 centers on the disparity between the Fair Market Rent (FMR) set by HUD and the actual market rent. For fiscal year 2024, the FMR for ZIP code 08350 is $1580. However, the recent market rent data from Repit.org indicates an average monthly rent of $1503.
This creates a $77 gap, where the FMR exceeds the market rent by approximately 5.1%. This situation presents an opportunity for landlords and small-portfolio investors to leverage housing vouchers as a yield play. The higher FMR ensures that voucher tenants can cover a significant portion of the market rent, providing a stable and predictable cash flow.
The median home value in ZIP code 08350 is $312,413, and the median income stands at $158,271. Despite these figures, the high vacancy rate of 26.8% suggests that the local rental market has room for improvement. The presence of a robust voucher system can mitigate some of the risks associated with high vacancies by ensuring occupancy and reducing the likelihood of prolonged vacancies.
Investors should be cautious about the potential challenges posed by a tenant-protective state and higher unemployment rates. These factors can impact the ease of managing properties and the reliability of tenants. However, the gap between FMR and market rent makes the area attractive for those willing to navigate these challenges.
The $77 difference between FMR and market rent translates to a 5.1% premium, which can be crucial for covering maintenance costs and other expenses. This premium, combined with the stability offered by voucher tenants, can enhance the overall profitability of rental investments in ZIP code 08350.
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.