Location: Trenton-Princeton, NJ | Metro: Trenton-Princeton, NJ MSA
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 | $1,270 |
| 1 Bedroom | $1,430 |
| 2 Bedrooms | $1,820 |
| 3 Bedrooms | $2,230 |
| 4 Bedrooms | $2,500 |
| 5 Bedrooms | $2,900 |
| 6 Bedrooms | $3,248 |
| 7 Bedrooms | $3,508 |
| 8 Bedrooms | $3,683 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,820 | $252,943 | 0.72% | D |
| 3BR | $2,230 | $269,782 | 0.83% | C |
| 4BR | $2,500 | $295,986 | 0.84% | C |
U.S. Census Bureau data (2024)
Trenton, NJ, specifically ZIP code 08629, offers a unique opportunity for inclusion within a Section 8 portfolio strategy. This area is best suited as an appreciation play, despite the lack of specific data on price-cut shares and days on market (DOM).
The primary reason for considering ZIP 08629 as an appreciation play is the significant spread between the Fair Market Rent (FMR) and the current market rent. For fiscal year 2024, the FMR for ZIP 08629 is set at $1740, whereas the current market rent stands at $1391. This discrepancy suggests that properties in this area have room for rent increases, aligning with the potential for appreciation.
Additionally, the median home value in ZIP 08629 is $258,484. Given the rising demand for affordable housing and the increasing number of households qualifying for Section 8 assistance, the value of homes in this area is likely to appreciate over time. The steady influx of tenants seeking subsidized housing can drive up property values as the local economy strengthens and more people move into the area.
ZIP 08629 also has a 37.5% renter share, indicating a substantial portion of the population relies on rental properties. With a median income of $82,646, there is a sufficient financial base to support the growth of the local real estate market. As the city continues to develop and attract new residents, the rental market will likely become more robust, leading to higher rents and increased property values.
In conclusion, ZIP 08629 in Trenton, NJ, is well-positioned as an appreciation play within a Section 8 portfolio strategy. The combination of a favorable rent spread, a growing rental market, and a strong local economy supports this classification.
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.