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 | $2,180 |
| 1 Bedroom | $2,350 |
| 2 Bedrooms | $2,930 |
| 3 Bedrooms | $3,490 |
| 4 Bedrooms | $3,920 |
| 5 Bedrooms | $4,547 |
| 6 Bedrooms | $5,093 |
| 7 Bedrooms | $5,500 |
| 8 Bedrooms | $5,775 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,930 | $485,633 | 0.6% | D |
| 3BR | $3,490 | $723,907 | 0.48% | F |
| 4BR | $3,920 | $871,250 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP code 08840, located in Metuchen, NJ, falls within the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area. For fiscal year 2024, the Fair Market Rent (FMR) for ZIP 08840 is set at $2,600. This figure closely aligns with the area's market rent of $2,691, indicating that Metuchen is neither significantly above nor below average compared to other ZIP codes within the HUD Metro FMR Area.
The median home value in ZIP 08840 stands at $682,589, which places it firmly within the mid-tier range of the Middlesex-Somerset-Hunterdon region. The relatively modest difference between the FMR and market rent suggests that Metuchen is a stable neighborhood where rental costs are reflective of the broader market conditions.
A key metric for landlords and investors interested in Section 8 properties is the percentage of renters. In ZIP 08840, 23.7% of residents are renters, which is slightly below the national average but comparable to other ZIP codes in the area. This moderate renter share, combined with the close alignment of FMR and market rent, indicates that Metuchen is a balanced market within the larger metro area.
While the home value in ZIP 08840 is not exceptionally high, it also does not signal a value pocket due to its proximity to the metro-wide median. The slight discrepancy between the FMR and market rent, with the latter being marginally higher, suggests that landlords can expect to receive rents slightly above the HUD benchmark. However, this difference is minimal and unlikely to create significant profit margins beyond what is typical for the area.
In summary, ZIP 08840 presents itself as a mid-tier neighborhood within the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area. It offers landlords and small-portfolio investors a stable environment with rental rates that are on par with the regional average. The specific figures indicate that while Metuchen is not a premium sub-market, it is also not a value pocket; instead, it represents a middle ground within its metro context.
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.