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 | $1,860 |
| 1 Bedroom | $2,000 |
| 2 Bedrooms | $2,500 |
| 3 Bedrooms | $2,980 |
| 4 Bedrooms | $3,340 |
| 5 Bedrooms | $3,874 |
| 6 Bedrooms | $4,339 |
| 7 Bedrooms | $4,686 |
| 8 Bedrooms | $4,920 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,000 | $226,188 | 0.88% | C |
| 2BR | $2,500 | $389,952 | 0.64% | D |
| 3BR | $2,980 | $585,789 | 0.51% | F |
| 4BR | $3,340 | $721,544 | 0.46% | F |
U.S. Census Bureau data (2024)
The ZIP code 08837 in Edison, NJ, is characterized by a diverse and moderately sized residential community with a total population of 19,437. Over half of the residents, specifically 50.6%, are renters, indicating a significant demand for rental properties in the area. The median household income stands at $102,605, reflecting a middle to upper-middle class neighborhood. This is further supported by the median home value of $537,053, which suggests a stable and affluent environment.
Moving into the economic landscape for rental properties, the Fair Market Rent (FMR) for ZIP 08837 as of the fiscal year 2024 is set at $2,100. In contrast, the market rent, measured by the Zillow Observed Rental Index (ZORI), is $2,312. This difference between FMR and market rent highlights the potential for landlords to earn slightly above the federally subsidized rates if they manage to attract non-voucher tenants.
Given these figures, ZIP 08837 would suit both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the stability of the FMR ensures a consistent and reliable income stream without the need for extensive property management. On the other hand, value-add buyers can leverage the higher market rent to increase their investment's profitability by improving property quality and attracting tenants willing to pay more than the voucher rate. The balance between a substantial rental population and moderate income levels makes it an attractive location for both types of investors.
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.