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 | $2,040 |
| 1 Bedroom | $2,200 |
| 2 Bedrooms | $2,740 |
| 3 Bedrooms | $3,260 |
| 4 Bedrooms | $3,660 |
| 5 Bedrooms | $4,246 |
| 6 Bedrooms | $4,756 |
| 7 Bedrooms | $5,136 |
| 8 Bedrooms | $5,393 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,260 | $544,319 | 0.6% | F |
| 4BR | $3,660 | $713,661 | 0.51% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 08869 in fiscal year 2024 is set at $2,380. This figure represents the payment standard for Section 8 vouchers in your area, which means it's the maximum amount that the government will pay on behalf of a tenant. However, it's important to note that this does not necessarily represent the total rent you can charge. The actual rent you set could be higher, but the voucher would only cover up to $2,380.
To put this into perspective, the Zillow Observed Rent Index (ZORI) for the same area is currently at $2,457. This indicates that the market rent is slightly above the FMR, suggesting a competitive rental environment where landlords might need to offer incentives or maintain high-quality properties to attract tenants.
In ZIP 08869, approximately 50.1% of residents are renters, showing a steady demand for rental properties. This high percentage of renters supports the viability of a Section 8 property in the area, as there is a significant pool of potential tenants who might benefit from this program.
If you're looking to acquire a property in this ZIP code, you should be prepared for an investment around $543,594, based on recent median home values. This is the average cost you would expect to pay for a typical home, which can help you budget accordingly and evaluate the long-term financial feasibility of your investment.
Before you decide to enter the Section 8 market, verify that the condition of the property meets the Housing Quality Standards (HQS). These standards ensure that the unit is safe, decent, and sanitary, which is mandatory for participation in the program. Failure to meet these requirements can result in disqualification from the program, leading to financial losses and wasted time.
By understanding the FMR, comparing it to the local market rent, and assessing the demand for rentals, you can make an informed decision about whether a Section 8 rental is right for you. Additionally, ensuring your property meets HQS is crucial to avoid any issues once you're part of the program.
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.