Location: Trenton-Princeton, NJ | Metro: Trenton-Princeton, NJ MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,560 |
| 1 Bedroom | $1,760 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
The analysis of the Section 8 cap-rate for ZIP code 08543 in New Jersey reveals some key insights into potential investment opportunities. The Fair Market Rent (FMR) for a two-bedroom apartment in this area, as set by HUD for fiscal year 2024, is $2000 per month. This figure provides a benchmark for rental income that can be expected under the Section 8 program.
To calculate the gross yield, we need to consider the annualized rental income against the property value. With an annualized FMR of $24,000 ($2000 x 12 months), the implied gross yield would depend on the median home value in the area. However, the median home value for ZIP 08543 is not available, making it impossible to provide a precise gross yield percentage based on the FMR alone.
In the absence of market rent data, the FMR serves as a reasonable estimate for the rental income potential. Assuming a typical property value, if we hypothetically use a median home value of $400,000, the gross yield would be 6% ($24,000 / $400,000). This calculation assumes the property value aligns with the median home value, which is not confirmed for ZIP 08543.
The lack of specific data on market rent, median home value, renter density, and days on market (DOM) complicates a detailed analysis. Nonetheless, the FMR-based gross yield provides a conservative estimate of the potential returns. Given the limited data, the FMR scenario is more realistic for landlords and small-portfolio investors looking to enter the Section 8 housing market in ZIP 08543.
Investors should conduct further research to refine these estimates, particularly focusing on actual property values and market rents within the ZIP code. This will help in understanding the true gross yield and making informed decisions about investments.
Data Sources: FMR data from HUD (2027).
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.