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 | $2,170 |
| 1 Bedroom | $2,340 |
| 2 Bedrooms | $2,910 |
| 3 Bedrooms | $3,470 |
| 4 Bedrooms | $3,900 |
| 5 Bedrooms | $4,524 |
| 6 Bedrooms | $5,067 |
| 7 Bedrooms | $5,472 |
| 8 Bedrooms | $5,746 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,470 | $759,030 | 0.46% | F |
| 4BR | $3,900 | $958,040 | 0.41% | F |
| 5BR | $4,524 | $1,321,193 | 0.34% | F |
U.S. Census Bureau data (2024)
The market dynamics in ZIP code 08836 reveal a unique scenario where the rental market is virtually non-existent, with a 0.0% renter share indicating that the vast majority of residents own their homes. This ownership prevalence suggests a stable, possibly affluent community, as evidenced by the median home value of $873,550. Such high home values can imply strong local economies and low vacancy rates, which typically correlate with robust property appreciation.
The Fair Market Rent (FMR) for ZIP 08836 is set at $2580 for fiscal year 2024. While the actual market rent is currently unavailable, the presence of an FMR without corresponding market rent data might suggest that rental properties are scarce, further supporting the notion of a predominantly owner-occupied area. The lack of rental options could be due to various factors including limited new construction, preference for homeownership, or existing rental units being converted into condominiums or sold outright.
The absence of data on price-cut shares and days on market (DOM) makes it challenging to directly assess whether supply outpaces demand or vice versa. However, given the high median home value and the low renter share, it's reasonable to infer that demand for homeownership is likely strong, potentially outstripping supply. This dynamic could lead to increased competition among buyers, driving up property values and making it difficult for new entrants to find affordable homes without substantial capital.
The 0.0% renter share also points to a long-term trend of housing stability and pressure towards homeownership. In such a market, landlords and small-portfolio investors must consider the challenges of finding tenants willing to pay the established FMR when rental options are limited. This scarcity of rentals could mean that any available rental units are quickly snapped up, leading to shorter vacancy periods but also potentially higher maintenance costs and property management challenges.
In conclusion, ZIP 08836 presents a market deeply rooted in homeownership, with high property values and a defined rental benchmark. Investors should approach this market with an understanding of its unique dynamics, recognizing the potential for strong property appreciation but also the difficulties in securing tenants in a primarily owner-occupied environment.
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.