Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Warren County, 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 | $2,120 |
| 1 Bedroom | $2,230 |
| 2 Bedrooms | $2,780 |
| 3 Bedrooms | $3,340 |
| 4 Bedrooms | $3,820 |
| 5 Bedrooms | $4,431 |
| 6 Bedrooms | $4,963 |
| 7 Bedrooms | $5,360 |
| 8 Bedrooms | $5,628 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,340 | $464,976 | 0.72% | D |
| 4BR | $3,820 | $659,401 | 0.58% | F |
U.S. Census Bureau data (2024)
The ZIP code 08804 presents several challenges for landlords considering Section 8 investments. Firstly, tenant turnover can be problematic due to the discrepancy between the market rent and the Fair Market Rent (FMR) set at $2270 for FY 2024. This gap could lead to difficulties in attracting tenants who qualify for vouchers, especially if market rents exceed this amount. Secondly, the vacancy exposure is significant given the non-existent data on Days on Market (DOM), which suggests that properties might stay vacant longer than expected, leading to reduced rental income. Thirdly, there is a notable deferred-maintenance exposure. With a typical home value of $491,719 and a median income of $107,333, many residents may struggle to afford necessary repairs and maintenance, potentially resulting in higher maintenance costs for landlords.
Despite these risks, the high renter share of 21.0% indicates strong demand for rental housing, which typically translates into a robust demand for Section 8 vouchers. The high concentration of renters often ensures a steady pool of potential tenants, reducing the risk of prolonged vacancies. Moreover, the presence of a substantial number of renters can stabilize the local rental market, making it less susceptible to sudden fluctuations in occupancy rates.
In conclusion, based on the provided data, the risk for a first-time Section 8 landlord in ZIP 08804 is moderate.
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.