Section 8 Fair Market Rent (FMR) for ZIP 08857 - 2027

Investment Score for ZIP 08857

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	$1,740
1 Bedroom	$1,880
2 Bedrooms	$2,340
3 Bedrooms	$2,790
4 Bedrooms	$3,130
5 Bedrooms	$3,631
6 Bedrooms	$4,067
7 Bedrooms	$4,392
8 Bedrooms	$4,612

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
2BR	$2,340	$475,004	0.49%	F
3BR	$2,790	$626,052	0.45%	F
4BR	$3,130	$766,547	0.41%	F
5BR	$3,631	$929,191	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08857 (Old Bridge, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 08857 in Old Bridge, New Jersey, for 2026 is set at $2180 for a two-bedroom apartment. This figure represents 23.9% of the median household income of $109,312, indicating that it is relatively affordable for the average resident. However, the actual rental market in Old Bridge is significantly higher, with the Zillow median price for a two-bedroom apartment standing at $471,356. This translates to a price-to-FMR ratio of 18.0x, which means that the actual rent prices are much higher than what the FMR suggests. For voucher holders, this presents a significant constraint. The FMR is designed to be the maximum amount that a voucher holder can pay, but given the high actual rental prices, finding suitable housing within the FMR limits can be challenging. A voucher holder would have to find a two-bedroom apartment renting for less than $2180 per month, which is far below the market rate. This could limit their options to older properties or those in less desirable areas. #### Affordability & Renter Profile Old Bridge has a population of 40,891, with 32.9% of residents being renters. The occupancy rate is 96.6%, suggesting that the rental market is quite tight. Given the median household income of $109,312, the majority of residents are likely employed in professional or managerial positions, reflecting the affluent nature of the area. The high price-to-FMR ratio indicates that the rental market is very competitive and expensive. For low-income families who rely on Section 8 vouchers, the cost of living in Old Bridge is particularly high. The FMR for a two-bedroom unit is only $2180, which is a small fraction of the median home value, making it difficult for these families to find affordable housing. This tight market also implies that there is little oversupply of rental units, and landlords have the upper hand in setting higher rents. #### Investor Angle From an investor perspective, the ZIP code 08857 is not likely to be cash-flow positive at the FMR levels. With the Zillow median price for a two-bedroom apartment at $471,356, the actual rental income needed to cover mortgage payments and expenses would be substantially higher than the FMR. The FMR for a two-bedroom unit is $2180, while the actual market rent is likely to be closer to $26,000 annually ($471,356 / 18.0x). Given the high costs associated with purchasing and maintaining properties in Old Bridge, the FMR is insufficient to generate positive cash flow. Additionally, the limited number of properties available within the FMR range makes it challenging for investors to target this market effectively. The investment grade for this ZIP code would be considered low due to the mismatch between FMR and actual market rents. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should consider focusing on smaller units such as one-bedroom apartments, where the FMR is $1730. While still challenging, the gap between FMR and market rates is slightly narrower, potentially offering better opportunities for cash flow. One-bedroom units might be more affordable for voucher holders and could attract a larger pool of tenants. 2. **Target Older Properties**: Investors looking to enter the Old Bridge rental market should look for older properties that might be priced lower than newer constructions. These units are more likely to fall within the FMR range and could provide a better chance of attracting Section 8 voucher holders. Additionally, older properties might require fewer maintenance costs compared to newer ones, which could help improve the overall financial performance. 3. **Consider Multi-Family Developments**: Given the tight market conditions, multi-family developments might offer a better opportunity to serve the rental demand. By constructing or acquiring multi-family buildings, investors can spread the fixed costs across multiple units, potentially making it more feasible to operate within the FMR guidelines. This strategy would require careful planning and possibly government incentives to make it financially viable. #### Bottom Line Based on the provided data, the recommendation for Section 8-focused investors in ZIP code 08857 is to **skip** this market. The high price-to-FMR ratio and tight rental market make it challenging to find properties that can generate positive cash flow while adhering to the FMR guidelines. Investors seeking to serve the needs of low-income families through Section 8 vouchers would likely struggle to find suitable properties and may face difficulties in attracting tenants. Therefore, it is advisable to explore other ZIP codes with a more favorable balance between FMR and actual rental prices.

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.