Section 8 Fair Market Rent (FMR) for ZIP 08724 - 2027

Investment Score for ZIP 08724

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	$1,680
1 Bedroom	$1,860
2 Bedrooms	$2,300
3 Bedrooms	$2,950
4 Bedrooms	$3,270
5 Bedrooms	$3,793
6 Bedrooms	$4,248
7 Bedrooms	$4,588
8 Bedrooms	$4,817

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$1,860	$290,830	0.64%	D
2BR	$2,300	$371,298	0.62%	D
3BR	$2,950	$564,050	0.52%	F
4BR	$3,270	$734,405	0.45%	F
5BR	$3,793	$905,307	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08724 (Brick, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 08724 (Brick, NJ) in 2026 indicate that the rent for a two-bedroom apartment is set at $2,390 per month. This figure represents 27.8% of the median household income in Brick, which stands at $103,127. For voucher holders, this means that they would need to find a rental property where the landlord is willing to accept a payment of $2,390 or less for a two-bedroom unit. However, the reality of the rental market in Brick suggests that finding such properties might be challenging due to the high price-to-FMR ratio. The price-to-FMR ratio for a two-bedroom apartment is 12.7 times the FMR. This implies that the median home value for a two-bedroom property on Zillow is $364,480, which is significantly higher than the FMR. Consequently, landlords who own homes near the median value would likely prefer to sell rather than rent out their properties at the FMR rate. This dynamic creates a constraint for voucher holders, as they may struggle to find affordable housing options within the parameters of their vouchers. #### Affordability & Renter Profile Brick, NJ has a population of 42,345, with 17.6% of residents being renters. The occupancy rate is quite high at 93.8%, indicating a robust demand for rental units. Given the relatively high median household income and the low percentage of renters, it can be inferred that the majority of residents in Brick are homeowners. The rental market is thus likely to cater to a niche segment of the population, including those who are financially constrained and may rely on government assistance like Section 8 vouchers. Despite the high median household income, the FMR for a two-bedroom apartment at $2,390 is still a significant portion of the average income. This suggests that the market is somewhat tight, especially for lower-income households. With only 17.6% of the population renting, there is a limited pool of potential tenants, making competition for rental units fierce. Additionally, the high occupancy rate indicates that there is little excess capacity in the rental market, further tightening the supply. #### Investor Angle From an investor perspective, the ZIP code 08724 presents a mixed picture when considering cash flow and investment grade. The FMR for a two-bedroom apartment is $2,390, but the median home value is $364,480, which translates into a monthly mortgage payment of approximately $1,500 to $1,800 based on typical interest rates and loan terms. After accounting for other expenses such as property taxes, insurance, maintenance, and utilities, the net cash flow for an investor renting out a two-bedroom property at the FMR could be marginal or even negative. Given the high price-to-FMR ratio, the investment grade for this ZIP code is likely to be low. Investors looking to maximize returns may find it difficult to achieve positive cash flow while adhering to the FMR guidelines. Moreover, the limited number of renters and the high competition for rental units mean that securing long-term tenants could be challenging. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments. The FMR for a one-bedroom apartment is $1,940, which is lower than the two-bedroom FMR. This could potentially allow for better cash flow if the mortgage and other costs are proportionally lower. 2. **Target Affordable Housing Areas**: Within Brick, NJ, there may be pockets of the market where housing is more affordable. Investors should look for neighborhoods with lower home values and possibly lower rental prices. This could help in achieving a more favorable price-to-FMR ratio and improve the chances of positive cash flow. 3. **Consider Long-Term Rental Agreements**: To mitigate the risk of tenant turnover, investors should consider offering long-term rental agreements to Section 8 voucher holders. This could provide stability and ensure a steady stream of income over time, despite the lower rental rates. #### Bottom Line For Section 8-focused investors, the ZIP code 08724 (Brick, NJ) presents a challenging environment. The high price-to-FMR ratio and the tight rental market suggest that achieving positive cash flow will be difficult. Therefore, the recommendation is to **Skip** this ZIP code unless investors are willing to take on the financial risks associated with potentially negative cash flow. If investors decide to proceed, they should focus on smaller units and target areas with more affordable housing options to optimize their returns.

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.