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 | $1,780 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,390 |
| 3 Bedrooms | $2,850 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,850 | $546,675 | 0.52% | F |
| 4BR | $3,200 | $735,605 | 0.44% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 in ZIP code 08825 operate under the parameters set by the U.S. Department of Housing and Urban Development (HUD), specifically the Small Area Fair Market Rent (SAFMR) for the region. For a two-bedroom apartment in ZIP 08825, the SAFMR for fiscal year 2024 is $1970. This figure represents the maximum amount that a Section 8 housing voucher will cover for rental costs in this specific ZIP code.
Local market rents, according to the Census American Community Survey (ACS), are currently at $1580 for a similar two-bedroom unit. This means that landlords operating in ZIP 08825 can expect a higher rental income from Section 8 vouchers compared to the average market rent, which is a positive aspect for those participating in the program.
To understand what a voucher actually pays, we need to factor in the tenant's portion and any utility allowances. Under the Section 8 program, tenants are generally responsible for paying 30% of their adjusted income towards rent. The remaining amount, up to the SAFMR of $1970, is covered by the voucher. Utility allowances vary but typically do not exceed $200 per month for a two-bedroom unit.
Let’s break down the reimbursement process:
In ZIP 08825, where the market rent is $1580, the typical reimbursement would be the full market rent plus the utility allowance, totaling around $1780. This results in a surplus for the landlord since the reimbursement exceeds the local market rent. If a landlord charges the full SAFMR of $1970, the reimbursement would still be capped at $1970 plus the utility allowance, leading to a smaller surplus or potentially no surplus if the landlord’s expenses are high.
The reimbursement gap or surplus depends on the actual rent charged. In ZIP 08825, landlords who charge closer to the market rent of $1580 will see a larger surplus due to the higher voucher coverage. Conversely, landlords who charge close to or above the SAFMR might find themselves with little to no surplus, especially when considering the utility allowance and other expenses.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.