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 | $2,060 |
| 1 Bedroom | $2,220 |
| 2 Bedrooms | $2,770 |
| 3 Bedrooms | $3,300 |
| 4 Bedrooms | $3,700 |
| 5 Bedrooms | $4,292 |
| 6 Bedrooms | $4,807 |
| 7 Bedrooms | $5,192 |
| 8 Bedrooms | $5,452 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 4BR | $3,700 | $953,342 | 0.39% | F |
U.S. Census Bureau data (2024)
27.5% of the residents in ZIP code 08853 are renters, indicating a significant portion of the population relies on rental housing. This makes it an ideal location for landlords and small-portfolio investors to consider. The $2070 Fair Market Rent (FMR) for zip code 08853, as of fiscal year 2024, provides a benchmark for rental pricing that aligns with government standards for affordability. Comparatively, the market rent stands at $2,144 according to Census ACS data, showing a slight premium over the FMR but still within a reasonable range for rental properties. Landlords can leverage this data to set competitive yet fair rental rates.
The median home value in ZIP 08853 is $867,869, reflecting a robust real estate market where property values have remained stable. For those looking to invest in single-family homes or small portfolios, this figure suggests a healthy return on investment potential. Additionally, the median income of $220,725 supports the ability of residents to afford higher rents and mortgage payments, further bolstering the financial viability of rental investments in this area.
Despite the lack of specific data on days on market (DOM) and the percentage of price-cut shares, the strong economic indicators point to a steady demand for rental properties. Investors should focus on maintaining properties to meet or exceed the FMR standards while also ensuring they remain competitive with market rents.
Given the economic stability and the significant renter share, ZIP code 08853 presents a favorable environment for Section 8 participation, allowing landlords to tap into a reliable source of tenants and income. The verdict on Section 8 for ZIP 08853 is positive, offering a secure investment option with clear guidelines and support structures in place.
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.