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 | $1,220 |
| 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 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,390 | $166,882 | 0.83% | C |
| 2BR | $1,690 | $242,337 | 0.7% | D |
| 3BR | $2,330 | $266,084 | 0.88% | C |
| 4BR | $2,570 | $325,303 | 0.79% | D |
| 5BR | $2,981 | $519,174 | 0.57% | F |
U.S. Census Bureau data (2024)
ZIP code 08401 is situated in Atlantic City, New Jersey, a coastal city known for its casinos and boardwalk. This area is densely populated with 38,925 residents, and it has a high rental rate, with 69.8% of its inhabitants being renters. The median household income in this ZIP code is $41,126, indicating a middle-income community. The median home value stands at $215,876, which reflects the affordable housing market in the region.
The Federal Market Rent (FMR) for ZIP code 08401 in fiscal year 2024 is set at $1,500. In contrast, the market rent, measured by Zillow's ZORI (Zillow Observed Rental Index), is $1,933. This discrepancy between the FMR and the market rent suggests a potential opportunity for landlords who can manage properties efficiently to capture the higher market rates while still attracting tenants through the Section 8 program.
Given the significant difference between the FMR and the market rent, ZIP 08401 would likely appeal more to a hands-on value-add buyer rather than a hands-off voucher operator. A hands-on approach allows for maximizing rental income by improving property conditions and services, thereby justifying the higher rents. For hands-off operators, the lower FMR might limit profitability unless they can significantly reduce operating costs.
To summarize, ZIP 08401 offers an environment where a hands-on strategy could be more beneficial due to the disparity between subsidized and market rents. Landlords willing to invest time and resources into enhancing their properties can potentially achieve better returns in this vibrant part of Atlantic City.
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.