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 | $1,800 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,240 |
| 5 Bedrooms | $3,758 |
| 6 Bedrooms | $4,209 |
| 7 Bedrooms | $4,546 |
| 8 Bedrooms | $4,773 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,890 | $608,346 | 0.48% | F |
| 4BR | $3,240 | $877,054 | 0.37% | F |
U.S. Census Bureau data (2024)
The ZIP code 08867 presents several challenges for potential Section 8 landlords. Tenant turnover is a significant concern, especially when considering the disparity between the local market rent and the $2110 Fair Market Rent (FMR) for FY 2024. This discrepancy can lead to higher turnover rates as tenants might seek better deals outside the program. Additionally, the lack of data on the average days on market (DOM) increases uncertainty regarding vacancy exposure. Landlords may face extended periods without rental income if properties remain vacant longer than expected.
The typical home value in ZIP 08867 is $736,145, which contrasts sharply with the median income of $204,583. This gap suggests that homeowners in this area may have deferred maintenance due to financial constraints, potentially leading to higher repair costs for landlords who inherit properties in need of updates. Deferred maintenance can be particularly problematic for Section 8 landlords, as the program has strict property condition requirements.
Despite these risks, the high concentration of renters—comprising 5.3% of the population—indicates a robust demand for housing vouchers. High renter density typically translates into greater competition among tenants for available Section 8 units, reducing the likelihood of prolonged vacancies. The strong desire for affordable housing in this area can mitigate some of the financial risks associated with tenant turnover and vacancy exposure.
In summary, while there are notable risks related to tenant turnover, vacancy exposure, and deferred maintenance in ZIP 08867, the high renter share offers a stabilizing factor. The overall risk for a first-time Section 8 landlord in this area is moderate.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.