Location: Middlesex-Somerset-Hunterdon, NJ | Metro: Middlesex-Somerset-Hunterdon, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,940 |
| 1 Bedroom | $2,080 |
| 2 Bedrooms | $2,600 |
| 3 Bedrooms | $3,100 |
| 4 Bedrooms | $3,480 |
| 5 Bedrooms | $4,037 |
| 6 Bedrooms | $4,521 |
| 7 Bedrooms | $4,883 |
| 8 Bedrooms | $5,127 |
The economics of Section 8 in ZIP code 08906, located in Middlesex-Somerset-Hunterdon County, New Jersey, are straightforward. For a two-bedroom rental unit, the SAFMR (Small Area Fair Market Rent) is set at $2250 per month for FY 2024. This figure is specifically tailored for this ZIP code, meaning it reflects the rental rates considered fair and reasonable within 08906.
A landlord participating in the Section 8 program receives payment from the housing authority for the difference between the SAFMR and the tenant's portion of the rent. The tenant is responsible for paying approximately 30% of their income towards rent, which is then supplemented by the housing authority to reach the SAFMR level. Utility allowances are also provided by the housing authority, which can range from $200 to $300 depending on the specific circumstances and needs of the household.
To illustrate, if a tenant's income is $2000 per month, they would pay 30%, or $600, towards the rent. The housing authority would cover the remaining amount up to the SAFMR of $2250. In this scenario, the landlord would receive $1650 from the housing authority plus the tenant's $600, totaling $2250. If the utility allowance is $250, the total monthly reimbursement to the landlord would be $2500.
If the local market rent for a two-bedroom unit in ZIP 08906 were higher than the SAFMR, there would be a reimbursement gap. However, since the local market rent data is currently unavailable, we cannot determine the exact surplus or shortfall. Typically, landlords should expect a reimbursement that closely matches the SAFMR, which in this case is $2250, without the additional utility allowance. If the market rent is indeed lower than the SAFMR, landlords could potentially charge the higher SAFMR rate and still have tenants who qualify for assistance.
In summary, for a two-bedroom unit in ZIP 08906, landlords can anticipate a Section 8 reimbursement of around $2250, with possible additional utility allowances. The actual surplus or shortfall will depend on the current local market rent conditions, which must be compared against the SAFMR to ascertain the financial impact.
Data Sources: FMR data from HUD (2027).
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.