Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, 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 | $2,360 |
| 1 Bedroom | $2,540 |
| 2 Bedrooms | $3,170 |
| 3 Bedrooms | $3,780 |
| 4 Bedrooms | $4,240 |
| 5 Bedrooms | $4,918 |
| 6 Bedrooms | $5,508 |
| 7 Bedrooms | $5,949 |
| 8 Bedrooms | $6,246 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,540 | $284,402 | 0.89% | C |
| 2BR | $3,170 | $412,857 | 0.77% | D |
| 3BR | $3,780 | $606,310 | 0.62% | D |
| 4BR | $4,240 | $860,912 | 0.49% | F |
U.S. Census Bureau data (2024)
Annandale, NJ, located in ZIP code 08801, is a residential area with a population of 7,267 residents. Only 16.7% of these residents are renters, indicating a predominantly owner-occupied community. The median household income here is a robust $149,839, reflecting a high-income demographic. The median home value in Annandale is also impressively high at $616,978, suggesting a prosperous neighborhood with expensive real estate.
The rental market in Annandale is characterized by a Fair Market Rent (FMR) set at $2,650 for ZIP code 08801 for fiscal year 2024. This figure is slightly below the Zillow Observed Rent Index (ZORI), which stands at $2,714. This indicates that the rental prices in Annandale are marginally higher than the government's benchmark for affordable housing, but still within a reasonable range given the high cost of living and property values in the area.
Given the relatively low percentage of renters and the high median income, Annandale is not an ideal location for a hands-off Section 8 voucher operator. The demand for subsidized housing is limited, and the income levels suggest that most residents can afford market-rate rents. Instead, Annandale is better suited for a hands-on value-add buyer who can capitalize on the strong local economy and high property values. Such an investor could focus on improving properties to command higher rents, aligning with the local market conditions and income levels.
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.