Location: Trenton-Princeton, 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 | $1,470 |
| 1 Bedroom | $1,650 |
| 2 Bedrooms | $2,070 |
| 3 Bedrooms | $2,520 |
| 4 Bedrooms | $2,830 |
| 5 Bedrooms | $3,283 |
| 6 Bedrooms | $3,677 |
| 7 Bedrooms | $3,971 |
| 8 Bedrooms | $4,170 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,070 | $402,283 | 0.51% | F |
| 3BR | $2,520 | $469,410 | 0.54% | F |
| 4BR | $2,830 | $550,562 | 0.51% | F |
| 5BR | $3,283 | $792,918 | 0.41% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 08620, located in Trenton, NJ, within Mercer County, are straightforward. The SAFMR (Small Area Fair Market Rent) for a two-bedroom apartment in this ZIP code for fiscal year 2024 is set at $1630. This figure is specific to this ZIP code and reflects the local rental market conditions.
The local market rent for a two-bedroom unit, according to the Census ACS, is $1640. This means that the SAFMR is very close to the actual market rent, which is beneficial for landlords as it minimizes the gap between the voucher payment and the market rent.
A Section 8 voucher pays a significant portion of the rent but not the entire amount. Landlords receive a reimbursement from the housing authority for the difference between the market rent and 30% of the tenant's income. For instance, if a tenant's portion of the rent is $492 (assuming their income is $1640 per month), the housing authority would cover the remaining $1138 ($1630 - $492).
In addition to the rent subsidy, there is also an allowance for utilities. These allowances vary but typically add a few hundred dollars to the total reimbursement. For example, if the utility allowance is $200, the total reimbursement to the landlord would be $1338 per month ($1138 + $200).
This setup ensures that landlords are paid a fair amount that aligns closely with the local rental market. Given the SAFMR and local market rent figures, the typical reimbursement gap for a two-bedroom apartment in ZIP 08620 is minimal. In this case, the reimbursement gap is $312 per year, calculated as follows: the tenant pays $492 monthly, the housing authority pays $1138 monthly, and the total market rent is $1640 monthly. Therefore, the landlord receives $1630 from the voucher plus the utility allowance of $200, totaling $1830 annually less than the market rent of $1640 multiplied by 12 months.
To summarize, landlords in ZIP 08620 can expect a reimbursement that covers most of the market rent, with a slight surplus or gap depending on the exact figures. The SAFMR being nearly equal to the local market rent makes this ZIP code particularly attractive for landlords participating in the Section 8 program.
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.