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 | $1,670 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,280 |
| 3 Bedrooms | $2,930 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,930 | $561,158 | 0.52% | F |
| 4BR | $3,240 | $682,521 | 0.47% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 08741 might have several concerns regarding the feasibility of renting out properties under the Section 8 program. Here's a direct look at those concerns based on the available data.
Will FMR $2000 (zip FY 2024) cover the mortgage on a $561,871 home?
The Fair Market Rent (FMR) for ZIP 08741 in fiscal year 2024 is set at $2000. This amount needs to be analyzed against the cost of owning a property valued at $561,871. A typical mortgage payment for such a home, assuming a 30-year fixed-rate loan at an average interest rate of around 5%, would be approximately $2,900 per month without considering property taxes and insurance. The $2000 FMR falls short of covering the mortgage payment alone, let alone other expenses. Therefore, relying solely on FMR to cover all costs associated with homeownership is not financially prudent.
Is there enough renter demand at 4.8%?
The vacancy rate for ZIP 08741 stands at 4.8%. This figure suggests that there is a relatively low vacancy rate, indicating strong rental demand. However, the data does not specify the exact number of renters or the proportion of those interested in Section 8 housing. While a 4.8% vacancy rate is positive, it does not guarantee a steady stream of Section 8 tenants. Landlords should consider additional factors such as local economic conditions and the availability of alternative housing options when assessing demand.
Will vouchers keep pace with $1,563 market rents?
The market rent in ZIP 08741 is reported to be $1,563. The question is whether Section 8 vouchers will cover this amount. Given that the FMR is higher at $2000, it is reasonable to assume that the voucher amounts could potentially cover $1,563. However, the actual voucher payment is often less than the FMR due to limits imposed by the program. To ensure financial viability, landlords must verify the current voucher payment rates and understand that they may not always match the market rents exactly. There is also a risk that voucher payments might not increase at the same rate as market rents if inflation or other economic factors push up rental prices faster than the adjustment of voucher amounts.
In summary, while ZIP 08741 presents some favorable conditions for rental demand, the financials are tight. The FMR does not fully cover the mortgage on a $561,871 home, and voucher payments may not always align with market rents. Careful consideration and thorough research into local housing dynamics and tenant preferences are necessary before committing to Section 8 rentals in this area.
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.