Location: Monmouth-Ocean, 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 | $2,070 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,830 |
| 3 Bedrooms | $3,630 |
| 4 Bedrooms | $4,020 |
| 5 Bedrooms | $4,663 |
| 6 Bedrooms | $5,223 |
| 7 Bedrooms | $5,641 |
| 8 Bedrooms | $5,923 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,830 | $380,547 | 0.74% | D |
| 3BR | $3,630 | $462,888 | 0.78% | D |
| 4BR | $4,020 | $538,263 | 0.75% | D |
| 5BR | $4,663 | $570,000 | 0.82% | C |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 08722, which encompasses Beachwood, NJ, presents a unique opportunity for landlords and small-portfolio investors due to the disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2110, while the Census ACS reports the market rent at $2,335. This creates a gap of $225 per month, representing a 10.6% difference.
Given that the FMR is lower than the market rent, landlords who accept housing vouchers must be prepared to offer rental units below the prevailing market rate. This decision comes with both advantages and challenges. The advantage lies in the guaranteed and timely payment of rents through the voucher system, reducing the risk of delinquency and vacancy. However, the challenge is the potential reduction in rental income compared to what could be earned in the open market.
In the context of Beachwood, NJ, where only 7.5% of residents are renters, landlords might find fewer opportunities to rent out properties to market-rate tenants. With a median home value of $462,366 and a median income of $106,858, it's evident that homeownership is the predominant form of housing in the area. This makes the Section 8 program particularly attractive for those looking to fill vacancies with a reliable tenant base.
Despite the lower FMR, accepting voucher tenants can still be a profitable strategy. Landlords can focus on minimizing costs and maximizing efficiency to improve their yield. Additionally, the stability provided by the voucher system can lead to longer tenancies, which can be beneficial for property management and maintenance planning.
To summarize, the gap between the FMR and market rent in Beachwood, NJ, highlights the trade-offs involved in participating in the Section 8 program. While landlords will receive slightly less than the market rate, the reliability and security of the payments can make this a viable option for maintaining occupancy and ensuring steady cash flow.
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.