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 | $1,650 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,250 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,250 | $329,346 | 0.68% | D |
| 3BR | $2,890 | $469,571 | 0.62% | D |
| 4BR | $3,190 | $612,080 | 0.52% | F |
U.S. Census Bureau data (2024)
In Toms River, NJ (ZIP 08757), the Federal Market Rent (FMR) for FY 2024 is set at $1890. This figure is crucial for landlords participating in the Section 8 program, as it represents the maximum amount they can charge for rent. However, a skeptical investor might question whether this FMR will sufficiently cover the mortgage on a median-priced home valued at $342,351. The answer is not straightforward without knowing the exact mortgage terms, interest rates, and loan-to-value ratio. Nonetheless, using an average fixed-rate mortgage of around 4.5%, the monthly principal and interest payment on a $342,351 home could be approximately $1600. Thus, the FMR of $1890 does provide a buffer to cover additional costs such as property taxes, insurance, and maintenance.
A second objection might be raised regarding the renter demand in the area, which stands at 12.9%. This percentage reflects the portion of the population that is renting, suggesting a moderate level of demand. While this may seem low compared to other areas, it still represents a significant number of potential tenants. To put this into perspective, if the total population of ZIP 08757 is roughly 40,000, then over 5,000 people are actively seeking rental housing. Given the size of Toms River, this indicates a steady stream of renters willing to occupy properties.
The final concern revolves around whether the Section 8 voucher payments will keep pace with the local market rents, which are currently averaging $2,775. The FMR of $1890 is significantly lower than the market rent, indicating a gap between what landlords can charge and what voucher holders can pay. This discrepancy means that landlords may need to consider other sources of income or subsidies to make up the difference. It also suggests that voucher holders may struggle to find suitable housing within their budget, potentially leading to higher vacancy rates or landlords opting out of the Section 8 program.
To summarize, while the FMR of $1890 in ZIP 08757 covers the basic mortgage costs, it leaves room for other expenses. The renter demand at 12.9% is sufficient but not overwhelming, and the gap between market rents and voucher payments is substantial, posing a challenge for both landlords and tenants.
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.