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 | $2,370 |
| 1 Bedroom | $2,550 |
| 2 Bedrooms | $3,180 |
| 3 Bedrooms | $3,790 |
| 4 Bedrooms | $4,250 |
| 5 Bedrooms | $4,930 |
| 6 Bedrooms | $5,522 |
| 7 Bedrooms | $5,964 |
| 8 Bedrooms | $6,262 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,180 | $392,503 | 0.81% | C |
| 3BR | $3,790 | $542,842 | 0.7% | D |
| 4BR | $4,250 | $916,093 | 0.46% | F |
U.S. Census Bureau data (2024)
ZIP 08823, located in Franklin Park, NJ, is a critical component of a Section 8 portfolio strategy due to its characteristics as a cash-flow anchor. The Federal Market Rent (FMR) for ZIP 08823 in fiscal year 2024 is set at $2760, which is significantly higher than the market rent of $2320. This $440 spread between the FMR and the market rent ensures that landlords participating in the Section 8 program can maintain steady cash flow.
The median home value in ZIP 08823 stands at $424,053, indicating a relatively stable housing market. However, the primary focus for Section 8 landlords should be on the guaranteed rental income, rather than potential appreciation. The 0.2% price-cut share suggests that while there is some negotiation on rents, it is minimal, and the N/A-day Days on Market (DOM) implies that properties in this area do not typically spend much time vacant, further supporting the cash-flow anchor thesis.
Moreover, the 28.3% renter share and median income of $115,597 provide additional context. While the renter share is substantial, the median income indicates that residents have the financial stability to meet their obligations. This makes ZIP 08823 particularly attractive for landlords seeking a reliable source of income through the Section 8 program, as it offers a balance between a significant renter base and the ability to command rents slightly above the market average.
In conclusion, ZIP 08823 serves best as a cash-flow anchor within a Section 8 portfolio. The $440 spread between the FMR and market rent ensures positive cash flow, and the stable housing market coupled with the financial stability of residents supports long-term investment viability.
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.