Section 8 Fair Market Rent (FMR) for ZIP 08812 - 2027

FY 2027 Fair Market Rent Rates

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Housing Authorities Serving ZIP 08812

• Perth Amboy Housing Authority (Perth Amboy, NJ) - 1,501 Section 8 vouchers
• Elizabeth Housing Authority (Elizabeth, NJ) - 1,345 Section 8 vouchers
• New Brunswick Housing Authority (New Brunswick, NJ) - 1,025 Section 8 vouchers
• Woodbridge Housing Authority (Woodbridge, NJ) - 975 Section 8 vouchers
• Plainfield Housing Authority (Plainfield, NJ) - 915 Section 8 vouchers
• Carteret Housing Authority (Carteret, NJ) - 696 Section 8 vouchers
• Union County Housing Authority (Elizabeth, NJ) - 439 Section 8 vouchers
• Edison Housing Authority (Edison, NJ) - 380 Section 8 vouchers
• Housing Authority City of Linden (Linden, NJ) - 362 Section 8 vouchers
• Highland Park Housing Authority (Highland Park, NJ) - 273 Section 8 vouchers

To determine if you should buy in ZIP 08812 (Dunellen, NJ) for Section 8, follow these steps:

Step 1: Debt Service Coverage Ratio (DSCR)

Does the Fair Market Rent (FMR) of $2320 cover the debt service on a property valued at $579,930?

• Yes: If the FMR of $2320 clears the debt service, proceed to Step 2.
• No: If the FMR of $2320 does not cover the debt service, do not invest in this area for Section 8.

Step 2: Market Rent Comparison

Is the market rent of $2,481 (ZORI) above, at, or below the FMR?

• Above FMR: The ZORI of $2,481 is higher than the FMR of $2320. This indicates that the market rent exceeds the FMR, making it less attractive for Section 8 tenants who are limited by the FMR cap. However, this could also mean higher potential rental income for non-Section 8 units.
• At or Below FMR: If the ZORI were equal to or lower than the FMR, it would be more aligned with Section 8 tenant budgets. Since the ZORI is above the FMR, this scenario does not apply here.

Step 3: Rental Demand Assessment

Are there sufficient renters and days on the market (DOM) to support demand?

• Yes: With 24.7% of residents being renters, there is a notable demand for rental properties. Additionally, the N/A-day DOM suggests that rental listings are either quickly filled or not applicable, indicating strong demand. These factors combined suggest that there is enough demand to support Section 8 investments.
• No: If the percentage of renters were low and the DOM was high, it would indicate weak demand for rental properties. In such a case, investing in Section 8 properties might not be advisable due to potential vacancy issues.
• It Depends: Given the data, the only scenario where it would depend is if the percentage of renters were marginal and the DOM was not provided. However, since the percentage of renters is relatively high and the DOM is not an issue, this branch does not apply.

In summary, the FMR of $2320 must first be assessed against the debt service of a $579,930 property. If it covers the debt service, the next consideration is whether the market rent ($2,481 ZORI) aligns well with the FMR. Lastly, evaluate the rental demand; with 24.7% of the population renting and no significant DOM concerns, there is likely enough demand to support Section 8 properties. If all three conditions are met, then you should consider buying in ZIP 08812 for Section 8.

Data Sources: FMR data from HUD (2027). 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.