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 | $1,450 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $2,000 |
| 3 Bedrooms | $2,710 |
| 4 Bedrooms | $3,000 |
| 5 Bedrooms | $3,480 |
| 6 Bedrooms | $3,898 |
| 7 Bedrooms | $4,210 |
| 8 Bedrooms | $4,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $1,650 | $335,650 | 0.49% | F |
| 2BR | $2,000 | $465,885 | 0.43% | F |
| 3BR | $2,710 | $655,396 | 0.41% | F |
| 4BR | $3,000 | $1,018,529 | 0.29% | F |
| 5BR | $3,480 | $1,716,363 | 0.2% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 08406, Ventnor City, NJ, is set at $1,850 for fiscal year 2024. This figure represents the benchmark for Section 8 rental assistance in the area. In comparison, the Zillow Observed Rent Index (ZORI), which reflects the actual market rent, stands significantly higher at $5,611. This substantial gap indicates that Section 8 voucher holders would not typically cover the full market rent, leading to a situation where landlords would need to subsidize the difference.
To analyze the potential cash flow from Section 8 tenants, consider the FMR against the median market rent. At $1,850, voucher tenants would only marginally cover costs for standard units, necessitating landlords to accept lower overall rents or seek premium units that can command higher prices due to unique features or locations. The median home value in the area is $634,557, which yields a rent-to-price ratio of approximately 1%. This ratio suggests that the property values are high relative to the rental income, which could be a concern for investors seeking immediate positive cash flow.
In terms of the broader real estate market, the median days on market (DOM) is N/A, and the median price cut share is 0.2%, indicating a stable market with little pressure to reduce asking prices. However, these metrics do not directly impact the decision-making process for Section 8 investors, who must focus primarily on the ability to maintain a steady income stream despite the lower FMR compared to market rates.
The strongest investor angle in ZIP 08406 for Section 8 investments is stability. Given the high median home value and the relatively low volatility in the local real estate market, investors can rely on consistent occupancy and predictable income from voucher tenants, even if the immediate cash flow is modest.
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.