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 | $1,940 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $2,880 |
| 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: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,420 | $453,365 | 0.53% | F |
| 3BR | $2,880 | $550,275 | 0.52% | F |
| 4BR | $3,240 | $604,208 | 0.54% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 08879, which encompasses South Amboy, New Jersey, stands at $92,786. This figure is crucial when evaluating the local rental market, where the market rate for rent (ZORI) is set at $2,598. To put this into context, the monthly housing cost as a percentage of income for a household earning the median income would be approximately 28%. While this is within the generally accepted range of affordability, it suggests that a significant portion of a household’s budget is dedicated to rent.
When comparing the market rate to the Fair Market Rent (FMR) for the area, which is set at $2,070 for fiscal year 2024, it becomes evident that there is a substantial gap. The ZORI exceeds the FMR by $528, indicating that landlords who wish to attract tenants using Section 8 vouchers must be prepared to accept a lower rent payment. This difference could impact the overall profitability and investment strategy for landlords in the area.
In South Amboy, 37.1% of the 23,556 population are renters. Given the affordability gap between the market rate and the FMR, landlords might face increased competition for non-voucher tenants who can afford the higher market rates. On the other hand, landlords who choose to participate in the voucher program may find a steady stream of tenants willing to pay the subsidized rate, albeit at a lower profit margin.
The takeaway for landlords considering their rental strategy is clear. By participating in the voucher program, landlords can ensure consistent occupancy and a stable income source, even if it means accepting a lower rent payment. For those who prefer to target cash-paying tenants, they should be prepared to compete on factors beyond just price, such as location, amenities, and property condition, to attract the limited pool of households capable of paying the $2,598 market rate.
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.