Section 8 Fair Market Rent (FMR) for ZIP 08550 - 2027

Location: Trenton-Princeton, NJ | Metro: Trenton-Princeton, NJ MSA

Investment Score for ZIP 08550

F
Monthly Rent (2BR)
$3,360
Median Price (2BR)
$601,813
1% Rule
0.56%
Annual Yield
6.7%

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$2,340
1 Bedroom$2,640
2 Bedrooms$3,360
3 Bedrooms$4,110
4 Bedrooms$4,620
5 Bedrooms$5,359
6 Bedrooms$6,002
7 Bedrooms$6,482
8 Bedrooms$6,806

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
2BR $3,360 $601,813 0.56% F
3BR $4,110 $758,377 0.54% F
4BR $4,620 $1,131,386 0.41% F
5BR $5,359 $1,316,801 0.41% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
21,067
Median Household Income
$224,213
Housing Units
7,941
Renter Percentage
23.9%
Occupancy Rate
98.4%
Renter Occupied
1,872

Princeton Junction, NJ, located in ZIP code 08550, is a highly desirable suburban area known for its proximity to Princeton University and its affluent demographic. The town offers excellent schools, vibrant community life, and convenient access to major transportation hubs, making it an attractive location for both renters and homeowners.

The combination of high median incomes and a significant renter share points to a robust rental market in Princeton Junction. Despite the disparity between the FMR and the actual market rent, the latter still represents a lucrative opportunity for landlords and small-portfolio investors. The high median home value underscores the overall desirability of the area, which can translate into steady demand and appreciation for rental properties over time.

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.