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 | $1,880 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,530 |
| 3 Bedrooms | $3,010 |
| 4 Bedrooms | $3,380 |
| 5 Bedrooms | $3,921 |
| 6 Bedrooms | $4,392 |
| 7 Bedrooms | $4,743 |
| 8 Bedrooms | $4,980 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,530 | $452,458 | 0.56% | F |
| 3BR | $3,010 | $586,531 | 0.51% | F |
| 4BR | $3,380 | $780,440 | 0.43% | F |
| 5BR | $3,921 | $927,275 | 0.42% | F |
U.S. Census Bureau data (2024)
Somerville, NJ (ZIP 08876) falls within the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area. The Fair Market Rent (FMR) for ZIP 08876 is set at $2130 for fiscal year 2024, while the average market rent stands at $2,311. This indicates that the FMR is slightly below the actual market rent, suggesting a modest subsidy for renters participating in the Section 8 program.
The median home value in Somerville is $599,397, which is likely to be reflective of the broader metro area's housing costs. However, the 38.9% renter share in Somerville is notably higher than the typical share in the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area, which is generally lower. This higher percentage of renters could indicate a strong demand for rental properties in the area.
Comparatively, ZIP 08876 appears to be a mid-tier neighborhood within the metro area. Its FMR and market rents are not significantly above or below the metro averages, but the higher renter share suggests it might attract more Section 8 participants. This makes it an attractive location for landlords who can benefit from a steady stream of tenants eligible for federal subsidies.
The combination of a below-market FMR and a high renter share does signal a potential sweet spot for Section 8 investments. Landlords can leverage the slightly lower FMR to offer competitive rents while still attracting subsidized tenants, thereby ensuring a stable occupancy rate and predictable income.
However, the relatively high median home value also implies that the area has a solid economic foundation, which could support property values and provide a buffer against economic downturns. For small-portfolio investors, Somerville represents a balanced opportunity within the metro, offering both stability and the benefits associated with a higher concentration of Section 8 tenants.
To summarize, ZIP 08876 is positioned as a mid-tier neighborhood within the Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area. It offers a good balance between Section 8 participation and overall market conditions, making it a viable option for those looking to invest in the area.
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.