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 | $1,960 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,820 |
| 3 Bedrooms | $3,450 |
| 4 Bedrooms | $3,870 |
| 5 Bedrooms | $4,489 |
| 6 Bedrooms | $5,028 |
| 7 Bedrooms | $5,430 |
| 8 Bedrooms | $5,702 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,820 | $396,674 | 0.71% | D |
| 3BR | $3,450 | $653,978 | 0.53% | F |
| 4BR | $3,870 | $949,593 | 0.41% | F |
| 5BR | $4,489 | $1,107,837 | 0.41% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should buy in ZIP code 08691 (Trenton, NJ) for Section 8 purposes, follow this decision tree based on the provided data:
1) Does FMR ($2,620) clear debt service on a $642,071 property?
No. The Fair Market Rent (FMR) of $2,620 for ZIP 08691 in fiscal year 2024 does not sufficiently cover the debt service on a property valued at $642,071. This means that relying solely on FMR would result in financial losses for the landlord.
2) Is market rent ($3,033 - ZORI) above, at, or below FMR?
Above. The market rent, represented by the Zillow Rent Index (ZORI), stands at $3,033. This figure is higher than the FMR of $2,620, indicating that landlords can potentially charge more than the FMR for their properties.
3) Are 25.2% renters + N/A-day days on market (DOM) enough demand?
It Depends. With 25.2% of the population being renters, there is a notable rental market presence. However, the lack of data on days on market (DOM) makes it challenging to assess how quickly properties can be rented out. Landlords must consider other factors such as vacancy rates and competition in the area to gauge demand accurately.
If you answered "No" to the first question, then purchasing a property in ZIP 08691 for Section 8 tenants is not financially viable without additional sources of income or subsidies. Even though the market rent exceeds the FMR, the initial investment cost of $642,071 cannot be justified by the FMR alone.
If you answered "Above" to the second question, this suggests that there is potential to earn more than the FMR by renting to non-Section 8 tenants. Landlords should weigh the benefits of higher rental income against the risks and management challenges associated with the broader rental market.
If you answered "It Depends" to the third question, landlords need to look beyond the percentage of renters and evaluate the local rental market dynamics. High rental percentages do not necessarily translate into quick rentals if the market is saturated or if there are significant barriers to entry for new landlords.
In conclusion, while ZIP 08691 offers a market rent above the FMR, making it attractive for those willing to rent outside of the Section 8 program, the high property value relative to the FMR poses a significant challenge for landlords seeking to exclusively serve Section 8 tenants. Demand appears present but requires further investigation to understand its practical implications.
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.