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 | $1,510 |
| 1 Bedroom | $1,720 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,820 |
| 4 Bedrooms | $3,120 |
| 5 Bedrooms | $3,619 |
| 6 Bedrooms | $4,053 |
| 7 Bedrooms | $4,377 |
| 8 Bedrooms | $4,596 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,720 | $380,911 | 0.45% | F |
| 2BR | $2,080 | $706,681 | 0.29% | F |
| 3BR | $2,820 | $1,077,459 | 0.26% | F |
| 4BR | $3,120 | $1,431,787 | 0.22% | F |
| 5BR | $3,619 | $2,425,658 | 0.15% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 08402, Margate City, NJ, reveals a rental market that is slightly above the HUD Fair Market Rent (FMR) for the area. The HUD FMR for this ZIP code in fiscal year 2024 is set at $1920 per month for a standard unit. In contrast, the market rent, as measured by Zillow's ZORI index, stands at $20,972 annually, or approximately $1748 monthly. This indicates that voucher tenants will generally cashflow at the FMR rate, though the margin is slim.
To further contextualize the rental market, the median home value in ZIP 08402 is $1,096,003. Using this figure, we can calculate the rent-to-price ratio, which comes out to about 1.92%. This low ratio suggests that the rental market is relatively affordable compared to the cost of homeownership, potentially making it an attractive option for renters, including those with vouchers.
The dynamics between renting and buying in this market do not significantly impact the rental sector, given that the median days on market (DOM) is listed as N/A, indicating a lack of relevant data. Similarly, the price-cut share of 0.1% suggests that there is little pressure on sellers to reduce their asking prices, which does not directly affect the rental market but does imply a stable housing market overall.
For investors, the strongest angle in ZIP 08402 is likely to be cashflow. While the margin is narrow, the ability to secure tenants through the Section 8 program ensures a steady stream of income, even if it is slightly below market rates. This stability is particularly valuable in a market where the rent-to-price ratio is low, suggesting that rental properties are a more accessible option for many residents.
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.