Section 8 Fair Market Rent (FMR) for ZIP 08527 - 2027

Investment Score for ZIP 08527

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,710
1 Bedroom	$1,890
2 Bedrooms	$2,340
3 Bedrooms	$3,000
4 Bedrooms	$3,320
5 Bedrooms	$3,851
6 Bedrooms	$4,313
7 Bedrooms	$4,658
8 Bedrooms	$4,891

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,890	$246,003	0.77%	D
2BR	$2,340	$434,655	0.54%	F
3BR	$3,000	$597,602	0.5%	F
4BR	$3,320	$809,738	0.41%	F
5BR	$3,851	$982,605	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08527 (Jackson, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 08527 in Jackson, NJ, for 2026 are as follows: - 0BR: $1710 - 1BR: $1920 - 2BR: $2370 (which is 24.6% of the median household income) - 3BR: $3100 - 4BR: $3430 These figures represent the maximum rent that can be charged for units covered by Section 8 vouchers. However, the actual rental market in Jackson, NJ, is significantly higher. For instance, the Zillow median price for a 2BR property is $436,259, which translates into a monthly mortgage payment well above the FMR. The price-to-FMR ratio for a 2BR unit is 15.3x, indicating that the actual cost of renting is far beyond what the FMR covers. This discrepancy creates significant constraints for voucher holders. They may struggle to find properties within their budget, especially if landlords are unwilling to accept Section 8 vouchers due to the high disparity between FMR and market rates. This could lead to a concentration of voucher holders in lower-tier housing options, potentially limiting their access to better neighborhoods and amenities. #### Affordability & Renter Profile Jackson, NJ, has a population of 58,991, with a median household income of $115,487. Only 12.9% of the population are renters, suggesting a relatively low demand for rental properties compared to owner-occupied homes. The occupancy rate of 93.9% indicates that the market is fairly tight, with most available units being occupied. Given the high median household income and low percentage of renters, it’s likely that those who do rent are either young professionals, students, or families with limited financial resources. The 2BR unit FMR of $2370 represents only 24.6% of the median income, making it relatively affordable for many residents. However, the overall rental market remains expensive, with the Zillow median price being much higher. The tight market suggests that there is little oversupply, and landlords have the leverage to charge higher rents. This makes it challenging for Section 8 voucher holders to find suitable housing, as they are restricted to the FMR limits. #### Investor Angle From an investor perspective, the ZIP code 08527 presents mixed opportunities. The high median home value and the tight rental market indicate strong demand for housing, but the price-to-FMR ratio of 15.3x for a 2BR unit suggests that relying solely on Section 8 vouchers would not be financially viable for most properties. To determine whether this ZIP code is cash-flow positive at FMR, we need to consider the typical operating costs and potential rental income. Given the high median home value, it’s reasonable to assume that the operating costs (including mortgage payments, maintenance, insurance, and property taxes) would also be high. At the FMR of $2370 for a 2BR unit, the income generated would likely fall short of covering these expenses, leading to negative cash flow. Therefore, the investment grade for this ZIP code would be relatively low for Section 8-focused investors. The high market rents and low FMRs create a scenario where properties are unlikely to generate sufficient cash flow when rented at FMR levels. #### Specific Actionable Insights 1. **Focus on Lower-Tier Properties**: Investors should focus on acquiring lower-tier properties that are more likely to be rented at or below the FMR. For example, a 2BR unit priced at around $250,000 might be more feasible for generating positive cash flow when rented at $2370 per month. 2. **Consider Mixed-Income Developments**: Developing mixed-income communities could be a viable strategy. By offering a mix of Section 8 units and market-rate rentals, investors can balance the lower income from Section 8 tenants with higher income from other residents. This approach helps ensure overall profitability while still providing affordable housing options. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help secure a steady stream of Section 8 tenants. These authorities often have programs to support affordable housing initiatives and can provide guidance on how to navigate the complexities of the voucher system. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 08527 is to **Skip**. The high price-to-FMR ratio and tight rental market make it difficult to achieve positive cash flow. While there are some opportunities in lower-tier properties, the overall environment is not favorable for investors primarily interested in Section 8 vouchers. Instead, investors might want to explore areas with a higher percentage of renters or a more balanced price-to-FMR ratio.

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.