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 | $1,940 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,790 |
| 3 Bedrooms | $3,410 |
| 4 Bedrooms | $3,830 |
| 5 Bedrooms | $4,443 |
| 6 Bedrooms | $4,976 |
| 7 Bedrooms | $5,374 |
| 8 Bedrooms | $5,643 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,790 | $353,662 | 0.79% | D |
| 3BR | $3,410 | $487,311 | 0.7% | D |
| 4BR | $3,830 | $688,250 | 0.56% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering Lawrence Township, NJ (ZIP 08648), might have several concerns regarding the feasibility of investing in properties under Section 8. Here's how the data addresses these points:
Objection 1: Will FMR $2,560 (zip FY 2024) cover the mortgage on a $459,177 home?
The Fair Market Rent (FMR) for ZIP 08648 is set at $2,560 for fiscal year 2024. To determine if this amount can cover the mortgage on a $459,177 home, we need to calculate the potential monthly mortgage payment. Assuming a typical mortgage rate of 4.5% and a 30-year fixed-rate loan, the monthly mortgage payment would be approximately $2,265. This means that the FMR of $2,560 does indeed exceed the estimated mortgage payment, leaving a buffer of $295 per month. However, it's important to note that other expenses such as property taxes, insurance, maintenance, and utilities must also be considered.
Objection 2: Is there enough renter demand at 34.0%?
The rental demand in ZIP 08648 is characterized by a 34.0% share of renters among all housing units. While this percentage is not exceptionally high, it suggests a moderate level of demand. For context, the national average rental share is around 35%, indicating that Lawrence Township's rental market is fairly aligned with the broader U.S. trend. Additionally, the rental vacancy rate should be examined to gauge the competition for tenants. If the vacancy rate is low, it implies strong demand despite the percentage being slightly below the national average.
Objection 3: Will vouchers keep pace with $2,692 market rents?
The market rent in ZIP 08648 is currently at $2,692, which is higher than the FMR of $2,560. Vouchers are designed to help low-income families pay market rates, but they do so up to a certain limit. In this case, the voucher limit is likely to be close to the FMR, meaning landlords might face a shortfall of $132 per month. To compensate, landlords could seek additional income sources or consider properties that fall within the voucher limits. It's crucial to monitor local housing authority guidelines and adjustments to ensure alignment with market trends.
In conclusion, while the data provides some assurance regarding the coverage of mortgage payments and the presence of a moderate rental market, there are still uncertainties, particularly concerning the pace at which vouchers adjust to match rising market rents. Careful financial planning and an understanding of local housing dynamics are essential for successful Section 8 investments in ZIP 08648.
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.