Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,870 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $2,990 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
U.S. Census Bureau data (2024)
The median income in ZIP code 08887 stands at $109,333, which provides insight into the financial capacity of households in this area. To assess affordability, consider the market rate for rent, which is $1,806 according to the Census ACS. A household earning the median income would typically allocate around 30% of their income towards housing costs, meaning they could comfortably afford rent up to approximately $2,733 per month. Given this, the $1,806 market rate is well within reach for most households, indicating strong demand for rental properties at this price point.
In comparison, the Fair Market Rent (FMR) set by HUD for ZIP 08887 in fiscal year 2024 is $2,190. This figure represents the maximum amount that Section 8 vouchers will cover for rent. The difference between the market rate ($1,806) and the FMR ($2,190) suggests that landlords accepting vouchers can still receive competitive rents, though slightly above the current market rate.
The ZIP code has a significant rental population, with 41.6% of the 1,380 residents being renters. This high percentage of renters indicates a robust market for rental properties. However, the affordability gap, defined by the difference between the median income and the FMR, means that some households may struggle to pay the higher voucher rates without additional assistance. For landlords, this implies a competitive landscape where those who offer units at or below the FMR may attract voucher holders, while those who keep rents closer to the market rate might cater to a broader pool of cash-paying tenants.
The takeaway for landlords considering voucher versus cash-pay strategies is that both avenues present opportunities. Accepting vouchers can ensure steady, government-backed rental income, albeit at a rate slightly higher than the current market. Opting for cash-paying tenants may allow for more flexibility in setting rent prices but requires an understanding of the local market dynamics and the ability to compete with other landlords offering similar accommodations.
Data Sources: FMR data from HUD (2027). 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.