Section 8 Fair Market Rent (FMR) for ZIP 08817 - 2027

Investment Score for ZIP 08817

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	$2,080
1 Bedroom	$2,240
2 Bedrooms	$2,790
3 Bedrooms	$3,320
4 Bedrooms	$3,730
5 Bedrooms	$4,327
6 Bedrooms	$4,846
7 Bedrooms	$5,234
8 Bedrooms	$5,496

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	$2,240	$284,759	0.79%	D
2BR	$2,790	$405,983	0.69%	D
3BR	$3,320	$573,876	0.58%	F
4BR	$3,730	$673,408	0.55%	F
5BR	$4,327	$831,255	0.52%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08817 (Edison, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for ZIP code 08817 (Edison, NJ) in 2026 are as follows: - 0BR: $1860 - 1BR: $2040 - 2BR: $2560 (which is 27.7% of the median household income) - 3BR: $3070 - 4BR: $3390 These FMRs represent the maximum rent that a Section 8 voucher holder can pay. However, the actual rental market in Edison, NJ, tends to be higher. For instance, the Zillow median price for a 2BR property is $403,230, which translates to a monthly mortgage payment of approximately $1860 based on typical financing terms. This suggests that landlords would need to charge significantly above the FMR to cover their costs, making it challenging for voucher holders to find suitable housing. Given the high cost of living and the relatively low FMR compared to actual rents, there are significant constraints for voucher holders. They might struggle to find properties where the landlord accepts the voucher amount as sufficient rent, especially considering the occupancy rate of 96.3%, indicating a tight rental market. #### Affordability & Renter Profile With a median household income of $110,808, the residents of Edison, NJ, have a relatively high earning potential. The 46.2% renter population indicates a substantial number of individuals who rely on the rental market. Given that the 2BR FMR ($2560) represents only 27.7% of the median income, the rental market is generally affordable for most residents. However, this does not apply to those dependent on Section 8 vouchers, as they face significant challenges finding housing within their budget. The occupancy rate of 96.3% suggests that the rental market is highly competitive, with few vacancies available. This tight market makes it difficult for renters, particularly those with limited financial resources like Section 8 voucher holders, to secure housing. The high demand and low vacancy rates indicate that landlords have considerable leverage in setting rental prices, often above the FMR levels. #### Investor Angle From an investor's perspective, the ZIP code 08817 presents both opportunities and challenges. The price-to-FMR ratio of 13.1x for a 2BR unit implies that the median home value is much higher than what a Section 8 voucher holder could afford. For example, a 2BR property priced at $403,230 would have a monthly mortgage payment of around $1860, which is close to the 0BR FMR but far below the 2BR FMR of $2560. This means that landlords would likely need to charge additional rent beyond the voucher amount to cover their mortgage payments and other expenses. Despite these challenges, the high occupancy rate and strong demand suggest that the ZIP code could still be profitable for investors willing to accept Section 8 vouchers. However, the profit margins would be slim, and investors must carefully consider the long-term sustainability of such investments given the constraints imposed by the FMR. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units such as 0BR or 1BR apartments. These units are more likely to align with the FMR and provide better cash flow. For instance, a 0BR unit with an FMR of $1860 could potentially cover the mortgage payment of $1860, leaving room for other expenses and a modest profit. 2. **Consider Multi-Family Properties**: Multi-family properties can offer better economies of scale and flexibility in managing different types of tenants. Investors could consider purchasing multi-family buildings where some units are rented to Section 8 voucher holders while others are rented to market-rate tenants. This mixed approach can help balance the financial impact of accepting lower rent from voucher holders. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can be beneficial. They can provide insights into the availability of vouchers and help navigate the process of becoming a Section 8 landlord. Additionally, understanding the local regulations and requirements can ensure compliance and avoid legal issues. #### Bottom Line For Section 8-focused investors, the ZIP code 08817 (Edison, NJ) presents a challenging yet potentially rewarding market. While the high price-to-FMR ratio and tight rental market make it difficult to find properties that align with the FMR, the strong demand and high occupancy rates suggest that the area could still be profitable. **Recommendation**: **Hold** Investors should hold off on large-scale purchases until they can secure properties that offer a better alignment between the FMR and actual rental costs. Focusing on smaller units and engaging with local housing authorities can mitigate some of the risks associated with this market. However, given the constraints, a cautious approach is advised.

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.