Section 8 Fair Market Rent (FMR) for ZIP 08816 - 2027

Investment Score for ZIP 08816

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,170
1 Bedroom	$2,340
2 Bedrooms	$2,920
3 Bedrooms	$3,480
4 Bedrooms	$3,910
5 Bedrooms	$4,536
6 Bedrooms	$5,080
7 Bedrooms	$5,486
8 Bedrooms	$5,760

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,340	$267,526	0.87%	C
2BR	$2,920	$401,012	0.73%	D
3BR	$3,480	$594,908	0.58%	F
4BR	$3,910	$795,295	0.49%	F
5BR	$4,536	$973,408	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08816 (East Brunswick, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 08816 in East Brunswick, NJ, are as follows for 2026: - 0 bedroom units: $2000 - 1 bedroom units: $2200 - 2 bedroom units: $2760 - 3 bedroom units: $3310 - 4 bedroom units: $3660 These FMRs represent the maximum amount that a Section 8 voucher holder can pay for rent. However, it is important to understand how these figures compare to actual market rents. For instance, the Zillow median price for a 2-bedroom unit is $393,485, which translates to a monthly mortgage payment of approximately $1,640 if financed at a 4% interest rate over 30 years (assuming a 20% down payment). This is significantly lower than the FMR of $2760 for a 2-bedroom unit, indicating that the actual rental costs in the area could be higher than what is covered by the vouchers. Given that the FMR for a 2-bedroom unit represents only 23.1% of the median household income ($143,586), there is a significant gap between the FMR and the actual income levels of residents. This suggests that voucher holders face substantial constraints in finding affordable housing, especially since the occupancy rate is very high at 97.6%, indicating limited available units. #### Affordability & Renter Profile The renter population in ZIP code 08816 is relatively small at 20.3% of the total population, which stands at 49,360. The high median household income of $143,586 implies that most residents are homeowners who can afford the local housing costs. However, the renters who do live in this area are likely to be a mix of young professionals, students, and families who may find it challenging to secure housing within their budget. The tight market conditions, with an occupancy rate of 97.6%, suggest that there is little room for additional rental properties. This makes it difficult for voucher holders to find suitable housing, as landlords may prefer tenants who can pay higher rents or have better credit histories. Additionally, the high price-to-FMR ratio of 11.9x indicates that the cost of owning a property far exceeds the rental income that can be generated through Section 8 vouchers, making it a less attractive option for landlords. #### Investor Angle From an investor perspective, the ZIP code 08816 presents mixed dynamics. While the FMRs provide a baseline for rental income, the high price-to-FMR ratio means that the investment would likely not generate positive cash flow. For example, a 2-bedroom unit with an FMR of $2760 would need to cover a mortgage payment of around $1,640, leaving little room for other expenses such as maintenance, taxes, and insurance. Given the high occupancy rate and the relatively low percentage of renters, the market is tight, and there is little opportunity for oversupply. This means that while there might be demand for rental properties, the supply is constrained, and competition among potential tenants is fierce. As a result, the investment grade for this ZIP code is low, particularly for those focusing solely on Section 8 vouchers. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider smaller units like 0BR or 1BR apartments where the FMR is lower. A 1BR unit with an FMR of $2200 might still struggle to cover the mortgage payment, but it could be more feasible compared to larger units. 2. **Consider Non-Section 8 Tenants**: Due to the tight market and high occupancy rates, investors should explore renting to non-voucher tenants who can pay closer to the actual market rates. This would ensure a more stable and potentially higher rental income. 3. **Evaluate Long-Term Appreciation Potential**: Although the current cash flow might be negative, investors should look into the long-term appreciation potential of properties in East Brunswick. With a median household income of $143,586, the area is likely to see steady growth in property values, which could offset initial losses. #### Bottom Line For Section 8-focused investors, the ZIP code 08816 is a **Skip** recommendation. The high price-to-FMR ratio and tight market conditions make it challenging to achieve positive cash flow. Instead, investors should consider areas with lower ratios and more rental demand. If investing in this ZIP code, focus on non-Section 8 tenants or evaluate the long-term appreciation potential rather than relying solely on rental income.

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.