Location: Monmouth-Ocean, NJ | Metro: Monmouth-Ocean, 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 | $1,950 |
| 1 Bedroom | $2,150 |
| 2 Bedrooms | $2,660 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $3,780 |
| 5 Bedrooms | $4,385 |
| 6 Bedrooms | $4,911 |
| 7 Bedrooms | $5,304 |
| 8 Bedrooms | $5,569 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,410 | $696,818 | 0.49% | F |
| 4BR | $3,780 | $997,130 | 0.38% | F |
| 5BR | $4,385 | $1,236,309 | 0.35% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 08510 hinges on analyzing its yield and stability metrics. The Fair Market Rent (FMR) for the area stands at $2680 for the fiscal year 2024, which directly informs the rental yield potential. With a median home value of $934,702, the property investment cost is substantial, making the yield relatively low when compared to the investment size.
To determine stability, consider the percentage of renters at 1.3%, which suggests a primarily owner-occupied area. This figure typically points towards lower stability for rental investments since fewer tenants mean less demand for rental properties. Additionally, the median household income of $225,966 indicates financial stability among residents, but it does not necessarily translate into rental stability if the majority of the population owns their homes rather than renting.
Given these metrics, ZIP 08510 does not align well with a high-yield/low-stability flip-style market. The relatively low rent-to-value ratio and high home values suggest that flipping properties for quick gains would be challenging due to the high capital investment required. Instead, this area leans more towards a steady-cashflow zone for those who can find suitable rental properties. However, the low percentage of renters hints at limited opportunities for steady cash flow, potentially placing the area in a middle ground where long-term, stable returns are possible but require careful selection of properties to ensure occupancy.
The decision to invest in ZIP 08510 should be based on the ability to secure properties at reasonable prices relative to the FMR and the willingness to manage a smaller pool of tenants. The high income levels could attract higher-end rentals, allowing for premium pricing, but this strategy would depend on the local rental market dynamics and the specific property types available.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.