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 | $2,490 |
| 1 Bedroom | $2,750 |
| 2 Bedrooms | $3,400 |
| 3 Bedrooms | $4,360 |
| 4 Bedrooms | $4,830 |
| 5 Bedrooms | $5,603 |
| 6 Bedrooms | $6,275 |
| 7 Bedrooms | $6,777 |
| 8 Bedrooms | $7,116 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $4,360 | $477,187 | 0.91% | C |
| 4BR | $4,830 | $581,698 | 0.83% | C |
U.S. Census Bureau data (2024)
The ZIP code 08555, located in the Monmouth-Ocean HUD Metro FMR Area of New Jersey, can serve as a cash-flow anchor within a Section 8 portfolio strategy. This designation is based on the favorable spread between the Fair Market Rent (FMR) and the market rent for the area.
In fiscal year 2024, the FMR for ZIP 08555 is set at $2,610. In contrast, the current market rent stands at $2,507. This indicates that properties in this ZIP code can be rented out at slightly below the FMR rate, ensuring a steady flow of government-subsidized income while remaining competitive with local market rates. The median home value of $488,975 suggests a relatively stable housing market, which supports the reliability of cash flow from rental properties.
While there's no specific percentage given for the price-cut share or days on market (DOM), the lack of these figures implies that the area does not show significant volatility in property pricing or rental demand. Therefore, it's less likely to be an appreciation play, where rapid increases in property values would be the primary focus.
ZIP 08555 also has a 21.3% renter share, indicating a moderate reliance on rental properties. However, the median income of $110,000 suggests that many residents have the financial capacity to afford market-rate rents or homeownership, reducing the potential for high tenant turnover and increasing the likelihood of stable, long-term rental income.
Conclusion: Given the data, ZIP 08555 is best suited as a cash-flow anchor due to the positive spread between the FMR and market rent, ensuring landlords and small-portfolio investors receive consistent, government-backed income without having to significantly undercut market rates. The stability implied by the median home value and median income further supports this role, providing a solid foundation for rental investments in a Section 8 portfolio.
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.