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 | $1,760 |
| 1 Bedroom | $1,890 |
| 2 Bedrooms | $2,360 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,160 |
| 5 Bedrooms | $3,666 |
| 6 Bedrooms | $4,106 |
| 7 Bedrooms | $4,434 |
| 8 Bedrooms | $4,656 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,810 | $524,641 | 0.54% | F |
| 4BR | $3,160 | $634,368 | 0.5% | F |
U.S. Census Bureau data (2024)
A decision tree for whether to invest in ZIP code 08882 for Section 8 properties starts with the Fair Market Rent (FMR) and the cost of the property. The FMR for ZIP 08882 in fiscal year 2024 is set at $1990.
1) Does FMR cover the debt service on a $528,570 property?
To determine if the FMR covers the debt service, we need to calculate the monthly mortgage payment based on typical financing terms. Assuming a 30-year fixed-rate mortgage at an interest rate of 5%, the monthly principal and interest payment would be approximately $2,795. Given that the FMR is $1990, it does not clear the debt service on a $528,570 property. This leads to a no on investing purely for Section 8 tenants under these conditions.
2) Is market rent above, at, or below FMR?
The Census ACS data indicates that the market rent for ZIP 08882 is $1,675 per month. This is below the FMR of $1990. This suggests that there is potential for rental income to exceed the market rent, but only up to the FMR level. Therefore, if you are considering renting to non-Section 8 tenants, you might find it challenging to achieve rents higher than the FMR without significant property improvements.
3) Are there enough renters to support demand?
The data shows that 34.4% of households in ZIP 08882 are renters. However, the Days on Market (DOM) information is not available, which is critical for understanding how quickly units can be rented out. Without this data, we cannot fully assess the demand. Based solely on the percentage of renters, it suggests a moderate level of demand. But to make a definitive decision, you would need to know the DOM to understand the speed at which properties are rented.
Decision Branches:
In conclusion, ZIP 08882 presents challenges for pure Section 8 investments due to the FMR not covering the debt service on a $528,570 property. For mixed strategies, the area has potential, but careful consideration of rent pricing and demand speed is necessary.
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.