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 | $1,650 |
| 1 Bedroom | $1,790 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,690 |
| 4 Bedrooms | $2,970 |
| 5 Bedrooms | $3,445 |
| 6 Bedrooms | $3,858 |
| 7 Bedrooms | $4,167 |
| 8 Bedrooms | $4,375 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,690 | $650,519 | 0.41% | F |
| 4BR | $2,970 | $812,056 | 0.37% | F |
U.S. Census Bureau data (2024)
The rent math for ZIP 08559 does not align favorably. The HUD Fair Market Rent (FMR) for the area is set at $2190 for fiscal year 2024. However, the actual market rent, according to Census ACS data, is significantly lower at $1,592. This discrepancy suggests that landlords may find it challenging to charge rents that meet the FMR without facing resistance from potential tenants who are aware of the market rates.
Acquisition in this ZIP code is not particularly affordable. With a median home value of $677,510, purchasing properties can be costly. Additionally, the lack of data on days on market (DOM) and the percentage of homes needing price cuts indicates that the local real estate market might be stable but also slow-moving, which could deter investors looking for quick returns or easy acquisitions.
Tenant demand in ZIP 08559 is limited. The total population is 4,836, with only a 3.0% renter share. This low percentage of renters implies that the majority of residents own their homes, making it difficult for landlords to find a substantial pool of potential tenants. The small number of renters means that competition for these few tenants could be intense, further complicating efforts to secure long-term leases at favorable rates.
Verdict: Investing in ZIP 08559 is not advisable due to unfavorable rent math, high property acquisition costs, and limited tenant demand. Landlords and small-portfolio investors should look elsewhere for better opportunities where they can charge closer to the HUD FMR and have a larger pool of potential tenants. The current conditions in 08559 do not support profitable real estate investments under the constraints of Section 8 guidelines.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.