Section 8 Fair Market Rent (FMR) for ZIP 08720 - 2027

Location: Monmouth-Ocean, NJ | Metro: Monmouth-Ocean, NJ HUD Metro FMR Area

Investment Score for ZIP 08720

N/A

Monthly Rent (2BR)

$2,370

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,730
1 Bedroom	$1,910
2 Bedrooms	$2,370
3 Bedrooms	$3,040
4 Bedrooms	$3,360
5 Bedrooms	$3,898
6 Bedrooms	$4,366
7 Bedrooms	$4,715
8 Bedrooms	$4,951

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$3,040	$871,798	0.35%	F
4BR	$3,360	$1,080,846	0.31%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

735

Median Household Income

$224,671

Housing Units

244

Renter Percentage

5.1%

Occupancy Rate

88.5%

Renter Occupied

The ZIP code 08720, located in New Jersey, is characterized by its high median income and relatively low renter share, indicating a predominantly owner-occupied residential market. This area is attractive for real estate investment due to its strong economic indicators and stable housing values.

The Fair Market Rent (FMR) for ZIP 08720 in fiscal year 2024 is set at $1,880. This figure represents the average rent that tenants can expect to pay for a two-bedroom apartment, reflecting the cost of living in the area.
The median home value in this ZIP code stands at $989,458, which is significantly higher than the national average and suggests a robust property market with potential for appreciation.
Renters make up only 5.1% of the total population, pointing to a community where homeownership is prevalent and preferred over renting.
The median income in ZIP 08720 is $224,671, well above the national median income, indicating a high demand for quality housing and the ability of residents to afford higher rents or mortgage payments.
While the exact number of days on market (DOM) for rental properties is not available, the low renter share and high median income suggest that rental units are likely to be occupied quickly once they become available.
The absence of recent market rent data might imply that the rental market is less active compared to the ownership market, but the FMR provides a reliable benchmark for rental pricing in the area.

Given the high median income and strong property values, ZIP 08720 offers a solid foundation for real estate investments, particularly in owner-occupied homes. The low renter share indicates that the area is less focused on rental income, making it more suitable for those interested in long-term capital appreciation rather than short-term rental yields. Investors should consider the Fair Market Rent as a guideline for setting rental prices if they choose to offer rental units, but the primary focus should be on the stability and growth potential of the ownership market.

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.