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 | $2,220 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,980 |
| 3 Bedrooms | $3,550 |
| 4 Bedrooms | $3,990 |
| 5 Bedrooms | $4,628 |
| 6 Bedrooms | $5,183 |
| 7 Bedrooms | $5,598 |
| 8 Bedrooms | $5,878 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,550 | $621,591 | 0.57% | F |
| 4BR | $3,990 | $820,763 | 0.49% | F |
| 5BR | $4,628 | $922,330 | 0.5% | F |
U.S. Census Bureau data (2024)
The rent math in ZIP 08824 does not favor landlords. The Fair Market Rent (FMR) set at $2,540 for the fiscal year 2024 is significantly higher than the actual market rent of $1,926 as reported by the Census ACS. This discrepancy means that landlords might struggle to find tenants willing to pay the higher FMR rate, leading to potential vacancies.
Acquisition in this area is challenging due to the high median home value of $720,071. With no data available on days on market (DOM) and a low 0.1% price-cut share, it indicates that homes are not typically being listed at discounted rates, making it less affordable for new investors to enter the market.
Tenant demand in ZIP 08824 is relatively low. The total population stands at 13,366, with only 11.7% of residents identified as renters. This suggests that the rental market is not robust, and landlords may face difficulties in maintaining occupancy levels.
In summary, ZIP 08824 presents a tough investment scenario for landlords and small-portfolio investors. The disparity between FMR and market rents, coupled with high home values and limited tenant demand, makes this area unattractive for those looking to profit from rental properties. Potential investors should carefully consider these factors before committing to acquisitions in this region.
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.