Section 8 Fair Market Rent (FMR) for ZIP 08831 - 2027

Investment Score for ZIP 08831

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	$1,940
1 Bedroom	$2,080
2 Bedrooms	$2,600
3 Bedrooms	$3,100
4 Bedrooms	$3,480
5 Bedrooms	$4,037
6 Bedrooms	$4,521
7 Bedrooms	$4,883
8 Bedrooms	$5,127

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	$2,080	$266,321	0.78%	D
2BR	$2,600	$408,298	0.64%	D
3BR	$3,100	$653,157	0.47%	F
4BR	$3,480	$929,561	0.37%	F
5BR	$4,037	$1,161,494	0.35%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08831 (Monroe Township, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Monroe Township, NJ, as of 2026, is set at $2430 for a two-bedroom unit. This represents 26.7% of the median household income of $109,042. However, it's important to note that the actual rental prices in the area can be significantly higher. The Zillow median price for a two-bedroom unit is $401,527, which translates to a monthly rent of approximately $1673 based on typical mortgage rates and property values. This implies that the actual rental market is about 13.8 times the FMR, indicating a substantial gap between the FMR and the real rental prices. Given this disparity, voucher holders face significant constraints. They must find landlords willing to accept the lower FMR rates, which can be challenging given the high demand for affordable housing and the premium rents commanded by the local market. Additionally, the limited number of units available at or below the FMR rate means that voucher holders often have fewer options, potentially leading to longer wait times and less desirable living conditions. #### Affordability & Renter Profile Monroe Township has a relatively low renter population percentage of 10.4%, suggesting that the majority of residents are homeowners. The occupancy rate of 97.1% indicates a robust housing market with little vacancy. This tight market makes it difficult for renters, especially those relying on Section 8 vouchers, to find suitable accommodation. The median household income of $109,042 suggests that most residents are financially stable and can afford higher-end housing, further driving up rental prices. Despite the high median income, the FMR for a three-bedroom unit is $2910, which is still only a fraction of the overall income level. This means that even though the renter population is small, they likely represent a mix of low-income families and individuals who are struggling to find affordable housing. The challenge for these renters is compounded by the fact that the actual rental market is much more expensive, with the Zillow median price being nearly 14 times the FMR. #### Investor Angle From an investor perspective, the ZIP code 08831 presents both opportunities and challenges. The high Zillow median price of $401,527 for a two-bedroom unit suggests a strong real estate market, but the price-to-FMR ratio of 13.8x indicates that properties rented at FMR levels would generate very little cash flow. For example, a two-bedroom unit rented at $2430 per month would need to cover all expenses, including mortgage payments, maintenance, insurance, and taxes, which are likely to be higher due to the overall cost of living in the area. To determine the investment grade, we need to consider the potential returns and risks. Given the tight rental market and the high demand for housing, there might be some stability in rental prices. However, the low renter population and the difficulty in finding tenants willing to pay FMR rates make this a risky investment. The cash flow would be minimal, and the potential for vacancy or tenant turnover could be higher, especially if the landlord is not flexible with pricing. #### Specific Actionable Insights 1. **Focus on Larger Units**: Since the FMR for larger units (three-bedroom and four-bedroom) is higher, investors might consider focusing on properties that can accommodate these larger units. For instance, a three-bedroom unit rented at $2910 per month would provide slightly better cash flow compared to a two-bedroom unit. This strategy could help mitigate the risk of low cash flow and potentially attract more tenants. 2. **Consider Mixed-Income Developments**: Given the high median income and the tight rental market, mixed-income developments could be a viable option. These developments combine market-rate units with affordable units, allowing investors to balance the financial risks associated with renting at FMR levels. By having a mix of units, investors can ensure a steady stream of income while still providing affordable housing options. 3. **Engage with Local Housing Authorities**: To increase the likelihood of finding tenants who can utilize Section 8 vouchers, investors should engage with local housing authorities and community organizations. Building relationships with these entities can help landlords navigate the complexities of accepting vouchers and potentially streamline the process of finding suitable tenants. #### Bottom Line For Section 8-focused investors, the ZIP code 08831 (Monroe Township, NJ) presents a challenging environment. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow. Therefore, the recommendation is to **skip** this ZIP code unless the investor is willing to take on the additional risk and has a strategy to mitigate the financial impact of renting at FMR levels. Investors looking for more stable and profitable opportunities might want to explore other areas with a higher renter population and a more balanced price-to-FMR ratio.

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.