Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, 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 | $2,030 |
| 1 Bedroom | $2,180 |
| 2 Bedrooms | $2,720 |
| 3 Bedrooms | $3,240 |
| 4 Bedrooms | $3,640 |
| 5 Bedrooms | $4,222 |
| 6 Bedrooms | $4,729 |
| 7 Bedrooms | $5,107 |
| 8 Bedrooms | $5,362 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,180 | $273,764 | 0.8% | D |
| 2BR | $2,720 | $395,747 | 0.69% | D |
| 3BR | $3,240 | $691,377 | 0.47% | F |
| 4BR | $3,640 | $1,040,405 | 0.35% | F |
| 5BR | $4,222 | $1,361,837 | 0.31% | F |
U.S. Census Bureau data (2024)
The HUD Fair Market Rent (FMR) for ZIP code 08536, Plainsboro, NJ, for fiscal year 2024 is set at $2,500. In comparison, the market rent as measured by Zillow's ZORI index stands at $2,154. This indicates that voucher tenants would typically generate positive cash flow at the FMR rate, suggesting that landlords can comfortably cover their expenses and still profit from the difference between the FMR and the actual market rent.
To further analyze the investment potential, consider the median home value in the area, which is $670,435. The rent-to-price ratio can be calculated by dividing the annual rent ($2,154 x 12 months) by the median home value. This yields an approximate ratio of 3.9%, indicating that rental income is relatively low compared to property values. However, this does not necessarily mean poor investment returns; it simply reflects the higher cost of homeownership in the region.
The dynamics between renting and buying in ZIP 08536 do not significantly impact the market due to the high median home value and the limited need for price cuts. The median Days on Market (DOM) is listed as N/A, and the share of listings that required price cuts was only 0.1%. These figures suggest a stable market with strong demand for both rentals and purchases, but with a slight bias towards owning due to the high property values.
The strongest investor angle in this market is stability. With a consistent demand for rental properties and minimal price fluctuations, investors can expect reliable cash flows and a predictable market environment, making it ideal for those seeking long-term, steady returns.
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.