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 | $1,720 |
| 1 Bedroom | $1,850 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,750 |
| 4 Bedrooms | $3,090 |
| 5 Bedrooms | $3,584 |
| 6 Bedrooms | $4,014 |
| 7 Bedrooms | $4,335 |
| 8 Bedrooms | $4,552 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,310 | $436,133 | 0.53% | F |
| 3BR | $2,750 | $545,487 | 0.5% | F |
| 4BR | $3,090 | $682,109 | 0.45% | F |
U.S. Census Bureau data (2024)
ZIP code 08859, located in Parlin, NJ, falls within the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 08859 is set at $2,000 for fiscal year 2024. This figure represents the maximum amount that a low-income family receiving housing assistance would pay for a modest rental unit.
The market rent in 08859 is $2,681, which is higher than the FMR but still relatively affordable compared to other areas within the metro. The median home value stands at $546,959, indicating that it is a middle-range area in terms of property costs. With a renter share of 41.6%, it suggests that a significant portion of the population in this ZIP code rents their homes rather than owning them.
To determine if 08859 is a value pocket, a mid-tier neighborhood, or a premium sub-market within its metro, we must consider how these figures compare to typical ZIP codes in the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area. Generally, a ZIP code with a lower home value and a higher renter share can be considered a value pocket for Section 8 landlords and investors. This is because such areas attract more tenants who rely on housing vouchers, increasing demand for rental properties.
In 08859, the combination of a below-median home value and a higher-than-average renter share indicates that it could be a sweet spot for Section 8 investment. However, the market rent being above the FMR shows that there is still a premium placed on rentals, suggesting that landlords can charge slightly above the subsidized rate without significantly deterring voucher holders.
This makes ZIP 08859 a promising value pocket within the larger metro area. Landlords and investors should take note of the strong rental market and the potential for steady occupancy rates driven by the high number of renters, many of whom may qualify for Section 8 assistance.
However, it's important to recognize that the actual performance of rental properties will depend on various factors including the condition of the units, location within the ZIP code, and competition from other rental properties. For those looking to invest in Section 8 properties, 08859 offers a balanced opportunity with a favorable tenant-to-owner ratio and reasonable property values.
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.