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 | $2,140 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,870 |
| 3 Bedrooms | $3,420 |
| 4 Bedrooms | $3,840 |
| 5 Bedrooms | $4,454 |
| 6 Bedrooms | $4,988 |
| 7 Bedrooms | $5,387 |
| 8 Bedrooms | $5,656 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,420 | $619,519 | 0.55% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 08810 hinges on a detailed analysis of its yield and stability metrics. To start, let's break down the key figures:
The Fair Market Rent (FMR) for ZIP 08810 in fiscal year 2024 is set at $2,560. This is notably higher than the current market rent of $2,199, indicating that properties in this area could potentially command rents above the typical market rate. However, when compared to the median home value of $634,522, the FMR suggests a relatively low rental yield.
Moving on to stability, the ZIP code has a modest percentage of renters at 12.0%. This figure implies that the majority of residents are homeowners, which can be a positive sign for stability as homeowners tend to be less transient. The average daily days on market (DOM) data is not available, but the median household income stands at $151,902, suggesting a robust economic base capable of supporting higher rents and property values.
Given these figures, ZIP 08810 leans towards being a steady-cashflow zone. While the potential for higher-than-market rents exists due to the FMR exceeding the market rent, the overall yield is still relatively low compared to the median home value. The stability aspect, driven by the high median income and lower percentage of renters, points towards a market that is less prone to significant fluctuations in occupancy rates or rental prices.
To further illustrate, consider the following:
The gap between FMR and market rent is approximately $361, which represents an opportunity for landlords to increase their rental income slightly above the average market rate.
The median income is over five times the FMR, indicating that tenants in this area have a strong ability to pay higher rents without financial strain.
In conclusion, ZIP 08810 offers a moderate yield opportunity alongside a stable economic environment, making it suitable for investors seeking consistent cash flow rather than high-risk, high-reward flipping strategies.
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.