Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Warren County, 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 | $1,710 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,290 |
| 3 Bedrooms | $2,740 |
| 4 Bedrooms | $3,080 |
| 5 Bedrooms | $3,573 |
| 6 Bedrooms | $4,002 |
| 7 Bedrooms | $4,322 |
| 8 Bedrooms | $4,538 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,740 | $510,752 | 0.54% | F |
| 4BR | $3,080 | $776,044 | 0.4% | F |
U.S. Census Bureau data (2024)
ZIP 08827, located within the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area, serves as a cash-flow anchor in a Section 8 portfolio strategy. The Family Monthly Rent (FMR) for ZIP 08827 in fiscal year 2024 is set at $1730. This figure stands above the market average rent of $1458, providing a solid margin that ensures positive cash flow. Given the high median home value of $607,285, it's evident that the area commands premium rents, making the guaranteed income from Section 8 vouchers particularly attractive.
The stability offered by the higher FMR compared to the market rent means that landlords can rely on consistent, government-backed payments. This reduces risk and provides a predictable income stream, which is crucial for maintaining financial health and covering expenses such as mortgage payments, property taxes, insurance, and maintenance costs. For small-portfolio investors, this predictability is especially valuable as it helps manage cash flow effectively across fewer properties.
While appreciation plays and diversifiers are important components of any real estate investment strategy, ZIP 08827 excels as a cash-flow anchor due to its strong economic base and the relative ease of securing Section 8 tenants. The median income of $135,625 suggests a robust local economy capable of supporting stable housing demand, further reinforcing the reliability of the cash flow generated by Section 8 properties in this ZIP code.
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.