Section 8 Fair Market Rent (FMR) for ZIP 08844 - 2027

Investment Score for ZIP 08844

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,290
1 Bedroom	$2,470
2 Bedrooms	$3,080
3 Bedrooms	$3,670
4 Bedrooms	$4,120
5 Bedrooms	$4,779
6 Bedrooms	$5,352
7 Bedrooms	$5,780
8 Bedrooms	$6,069

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,470	$266,867	0.93%	C
2BR	$3,080	$438,388	0.7%	D
3BR	$3,670	$631,986	0.58%	F
4BR	$4,120	$888,307	0.46%	F
5BR	$4,779	$1,126,764	0.42%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08844 (Hillsborough Township, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) figures for Hillsborough Township, NJ, indicate that the cost of renting varies significantly based on the number of bedrooms. For the year 2026, the FMRs are as follows: - 0 Bedroom: $2,090 - 1 Bedroom: $2,290 - 2 Bedrooms: $2,880 - 3 Bedrooms: $3,450 - 4 Bedrooms: $3,820 These figures represent the maximum amount that a Section 8 voucher holder can pay towards rent. However, it is important to note that the actual rents in the area are much higher. The Zillow median price for a two-bedroom property is $434,837, which translates to a monthly mortgage payment of approximately $2,000 assuming a 30-year fixed-rate mortgage at a 4% interest rate. This means that even if a landlord were to charge the FMR rate of $2,880 for a 2BR unit, they would still be well above the typical mortgage payment, indicating significant profit potential. However, there are constraints for voucher holders. The 2BR FMR represents only 22.5% of the median household income in the area ($153,556). This suggests that voucher holders must find units where the rent does not exceed $2,880 per month, which could be challenging given the high overall rental costs in the area. #### Affordability & Renter Profile Hillsborough Township has a population of 44,463, with 20.4% of residents being renters. The occupancy rate is very high at 99.1%, indicating a tight rental market with little excess supply. Given the median household income of $153,556, the majority of residents likely have the financial means to afford higher rents without assistance. This makes it particularly difficult for low-income households to find affordable housing, especially those relying on Section 8 vouchers. The high median income also implies that the average renter in this area is likely to be middle-class or higher, who may prefer newer, larger homes or apartments. Consequently, the demand for smaller units (0BR and 1BR) is lower, making it less attractive for landlords to offer these types of units at the FMR rates. #### Investor Angle From an investor perspective, the ZIP code 08844 presents a mixed picture. While the FMRs are relatively low compared to the overall rental market, the high price-to-FMR ratio (12.6x) indicates that properties are significantly overpriced relative to the rental value. This means that an investor purchasing a property at the median price would likely struggle to achieve positive cash flow when renting at the FMR rates. To illustrate, let’s consider a 2BR unit priced at the Zillow median of $434,837. Assuming a 20% down payment, the monthly mortgage payment would be around $2,000. If the landlord charges the FMR rate of $2,880, they would have a net positive cash flow of $880 per month. However, this calculation does not account for other expenses such as maintenance, insurance, property taxes, and utilities, which can easily eat into this margin. Given the high price-to-FMR ratio, the investment grade for this ZIP code is relatively low. The primary challenge for investors is the difficulty in finding properties that can generate positive cash flow while adhering to the FMR guidelines. #### Specific Actionable Insights 1. **Focus on Larger Units**: Given the high median income and the fact that 2BR units represent only 22.5% of the median income, it might be more practical to focus on larger units (3BR and 4BR). These units have higher FMRs ($3,450 and $3,820 respectively), which are closer to the actual rental market rates. This would help mitigate the risk of negative cash flow. 2. **Consider Non-Owner Occupied Properties**: Since the median home price is so high, investors might want to look into multi-family buildings or apartments that are already rented out. These properties typically have lower purchase prices compared to single-family homes and may offer better opportunities for cash flow at FMR rates. 3. **Explore Government Programs**: Investors should explore government programs that provide additional subsidies or incentives for landlords who accept Section 8 vouchers. These programs can help offset some of the financial risks associated with renting at FMR rates. #### Bottom Line For investors focusing specifically on Section 8 vouchers, the recommendation for ZIP code 08844 is to **skip** this market. The high price-to-FMR ratio and the tight rental market make it difficult to achieve positive cash flow while adhering to the FMR guidelines. Instead, investors might want to look for areas with a lower price-to-FMR ratio or higher FMRs relative to median incomes. If investors decide to enter this market despite the challenges, they should carefully evaluate their options and consider focusing on larger units or exploring additional government support programs to ensure profitability.

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.