Section 8 Fair Market Rent (FMR) for ZIP 08901 - 2027

Investment Score for ZIP 08901

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,900
1 Bedroom	$2,040
2 Bedrooms	$2,550
3 Bedrooms	$3,040
4 Bedrooms	$3,410
5 Bedrooms	$3,956
6 Bedrooms	$4,431
7 Bedrooms	$4,785
8 Bedrooms	$5,024

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,040	$305,539	0.67%	D
2BR	$2,550	$349,491	0.73%	D
3BR	$3,040	$449,039	0.68%	D
4BR	$3,410	$529,034	0.64%	D

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 08901 (New Brunswick, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 08901 in New Brunswick, NJ, as of 2026, is set at $2380 for a two-bedroom unit. This figure represents 43.4% of the median household income in the area, which stands at $65,810. However, the actual rent for a two-bedroom unit on Zillow is listed at $343,725, which translates to a monthly rental cost of approximately $2864 based on typical mortgage calculations. This means that the price-to-FMR ratio is about 12.0x, indicating that actual rents are significantly higher than the FMR. For voucher holders, this creates a significant constraint. The maximum amount a voucher holder can pay towards rent is typically 30% of their income, which in this case would be around $1974 per month. Since the FMR for a two-bedroom unit is $2380, voucher holders would need to find landlords willing to accept the difference between the FMR and the tenant’s contribution. This gap is substantial, especially considering the actual market rent is even higher at $2864. #### Affordability & Renter Profile ZIP code 08901 has a high renter population percentage of 78.6%, suggesting a strong demand for rental properties. With a median household income of $65,810, affordability is a key issue for many residents. Given that 43.4% of the median income is required to cover the rent for a two-bedroom unit, it is clear that many renters are struggling to find affordable housing. The occupancy rate of 93.0% indicates that there is little vacancy in the rental market, making it a tight market where supply is constrained relative to demand. This tightness supports higher rents and makes it difficult for low-income individuals to secure housing without assistance like Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 08901 offers mixed prospects. The FMR for a two-bedroom unit is $2380, but the actual market rent is $2864. This suggests that investors who can secure tenants paying the FMR will still be below the market rate, potentially impacting cash flow. However, the high renter population and tight market conditions indicate that finding tenants should not be overly challenging. To determine if this ZIP code is cash-flow positive at FMR, we need to consider the typical expenses associated with owning and renting out a property. Assuming a conservative estimate of 50% of the rental income going towards expenses (including mortgage payments, maintenance, insurance, and taxes), the net income from a two-bedroom unit at FMR would be around $1190 per month. This is a positive cash flow, but it is lower than what could be achieved by renting at market rates. In terms of investment grade, the high renter population and occupancy rate suggest a stable and desirable market. However, the significant gap between FMR and market rent implies that investors might face challenges in attracting tenants who can only afford the FMR. Additionally, the high price-to-FMR ratio indicates that the purchase price of properties in this area is considerably above the FMR, which could affect the return on investment. #### Specific Actionable Insights 1. **Focus on Properties Below Market Value**: Investors should look for properties that are priced closer to the FMR rather than the market value. For instance, a two-bedroom unit priced at $2380 would be more attractive to voucher holders and potentially easier to rent out compared to units priced at $2864. 2. **Consider Multi-Family Units**: Given the high renter population and the fact that many households require larger units, investing in multi-family buildings with three or four-bedroom units could be more profitable. These units have higher FMRs ($2850 and $3160 respectively), which align better with the actual market rents. 3. **Engage with Local Housing Authorities**: Building relationships with local housing authorities can help ensure a steady stream of voucher holders. This is particularly important given the high renter population and the tight market conditions. #### Bottom Line For Section 8-focused investors, ZIP code 08901 presents a moderately favorable environment. The high renter population and tight market support the demand for rental properties, but the significant gap between FMR and market rent poses challenges. **Recommendation**: **Hold**. While the market is tight and there is a strong demand for rental properties, the high price-to-FMR ratio and the need to attract voucher holders who can only pay up to 30% of their income make this a moderate investment. Investors should carefully evaluate the potential for positive cash flow and the ease of securing tenants before committing to purchases in this 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.