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 | $1,950 |
| 1 Bedroom | $2,100 |
| 2 Bedrooms | $2,620 |
| 3 Bedrooms | $3,120 |
| 4 Bedrooms | $3,500 |
| 5 Bedrooms | $4,060 |
| 6 Bedrooms | $4,547 |
| 7 Bedrooms | $4,911 |
| 8 Bedrooms | $5,157 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,620 | $417,935 | 0.63% | D |
| 3BR | $3,120 | $649,673 | 0.48% | F |
| 4BR | $3,500 | $899,144 | 0.39% | F |
| 5BR | $4,060 | $1,346,034 | 0.3% | F |
U.S. Census Bureau data (2024)
2500 is the Fair Market Rent (FMR) for ZIP code 08833 in Lebanon Borough, NJ, for fiscal year 2024. 3017 is the Zillow Observed Rental Index (ZORI), indicating the market rent for the area. 730111 represents the median home value in this ZIP code, which is significantly higher than the fair market rent. 12.3 percent is the share of renters in the area, suggesting a modest demand for rental properties. However, the median income of 172454 provides a strong financial base for potential tenants, ensuring they can afford the market rents. The day DOM (Days on Market) figure is not available, but the 0 percent price-cut share indicates that homes in this area are likely selling at or near their asking price, reflecting a stable and healthy real estate market. Given these numbers, it's clear that while the rental market is not overly saturated, the high median home values and robust median incomes suggest that properties in ZIP 08833 can command premium rents. For landlords and small-portfolio investors considering Section 8 participation, the discrepancy between the FMR and the actual market rent should be noted. This gap means that landlords might find the reimbursement rates insufficient to cover market-level rental costs, making Section 8 less attractive in this particular ZIP code. In conclusion, the verdict for Section 8 in ZIP 08833 is that it is not financially advantageous due to the high cost of living and rental market conditions.
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.