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 | $1,890 |
| 1 Bedroom | $2,040 |
| 2 Bedrooms | $2,540 |
| 3 Bedrooms | $3,030 |
| 4 Bedrooms | $3,400 |
| 5 Bedrooms | $3,944 |
| 6 Bedrooms | $4,417 |
| 7 Bedrooms | $4,770 |
| 8 Bedrooms | $5,009 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,540 | $416,360 | 0.61% | D |
| 3BR | $3,030 | $492,043 | 0.62% | D |
| 4BR | $3,400 | $508,278 | 0.67% | D |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 08835 (Manville, NJ) provides insights into potential investment returns. The Fair Market Rent (FMR) for a 2-bedroom unit in FY 2024 is set at $2100 per month, while the Zillow Observed Rent Index (ZORI) indicates a market rent of $1950 per month.
To calculate the gross yield, we annualize these figures. For the FMR scenario, the annualized rent is $25,200 ($2100 x 12 months), and for the ZORI scenario, it is $23,400 ($1950 x 12 months).
Given the median home value of $476,344, the implied gross yield for the FMR scenario is approximately 5.29%. This is derived by dividing the annualized rent of $25,200 by the median home value of $476,344. In contrast, the implied gross yield for the ZORI scenario is slightly lower at around 4.91%, calculated by dividing the annualized rent of $23,400 by the same median home value.
Considering the 23.0% renter density in Manville, NJ, it's important to note that the rental market may not be as robust as in higher-density areas. However, the FMR rate is a government-set benchmark designed to ensure affordability, so it is likely more stable and reliable for long-term investments.
The N/A-day DOM (days on market) suggests that there might be limited data on how quickly properties are rented out, making it challenging to predict vacancy rates. Nonetheless, the FMR scenario, with its higher gross yield of 5.29%, offers a more attractive return compared to the market rent scenario of 4.91%. Given the stability of Section 8 rents and the relatively low renter density, the FMR scenario appears more realistic for steady income generation.
In conclusion, the Section 8 cap-rate for ZIP 08835 leans towards a gross yield of 5.29% based on the FMR, which is preferable over the market rent yield of 4.91% for investors seeking consistent returns.
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.