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Morris County/Madison/07940

07940

ZIPSAFMR
Morris County, NJ
Zillow

ZIP Investment Score

51Below average

095130300
BRFMR
Eff. Rent
0 BR$2,230$2,430
1 BR$2,520$2,570
2 BR$3,040$3,320
3 BR$3,790$4,150
4 BR$4,340$4,770
5 BR$4,991Not available
6 BR$5,740Not available
7 BR$6,601Not available
8 BR$7,591Not available

Purchase Price Calculator

Maximum purchase price
$431,434

Cost breakdown

+Likely effective rent$3,320
HUD FMR$3,040
Market rent$3,470
Est. payment standard (109%)Used$3,320
-Principal and interest-$2,182
Loan amount$345,147
Down payment$86,287
Rate6.50%
Term30 years
-Operating costs-$938
Property taxes-$431
Insurance-$175
Utilities$0
HOA$0
Management-$332
=Target cash flow+$200
Calculation mode

Hold period projections

Annual appreciation rate
3-year hold
+$52,739(61.1% ROI)
Projected value
$464,607
Return breakdown
Property appreciation+$33,173
Loan principal paid down+$12,366
Rental cash flow+$7,200
5-year hold
+$90,746(105.2% ROI)
Projected value
$488,128
Return breakdown
Property appreciation+$56,694
Loan principal paid down+$22,052
Rental cash flow+$12,000
10-year hold
+$197,383(228.8% ROI)
Projected value
$552,272
Return breakdown
Property appreciation+$120,838
Loan principal paid down+$52,545
Rental cash flow+$24,000

Public Housing Authority

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Rolodex

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Market Alignment

Studio
0.88
1 BR
0.97
2 BR
0.88
3 BR
0.87
4 BR
0.74
0.701.001.30aligned range
Historical
FY 2023-2027
FMR
FY2027
Market rent
last ~365 days
Property value
--
Tax rate
--
Mortgage rate
--

ZIP 07940 fair market rent, FY 2027

For FY 2027, HUD's Small Area Fair Market Rent for a two-bedroom unit in ZIP 07940 (Madison, NJ) is $3,040 a month. That is unchanged from FY 2026. Madison is in the Newark, NJ HUD Metro FMR Area. HUD also publishes the ZIP-level Small Area FMRs shown here, but unless the local housing authority has adopted them, vouchers are based on the metro-wide two-bedroom FMR of $2,233. Among 65 ZIP codes in Morris County, 07940 has the 18th-highest two-bedroom rent (county range $1,990–$3,390). The median county two-bedroom FMR in New Jersey is $2,233, so ZIP 07940 is 36% above it.

FY 2027 rent by bedroom

FY 2027 fair market rent by bedroom for 07940
BedroomsFY 2027Change90–110% range
Studio$2,230+0.5%$2,007–$2,453
1BR$2,520+0.4%$2,268–$2,772
2BR$3,0400.0%$2,736–$3,344
3BR$3,790−0.5%$3,411–$4,169
4BR$4,340+0.5%$3,906–$4,774

Fair market rent history, FY 2023–2027

Fair market rent by fiscal year for 07940
Fiscal yearStudio1BR2BR3BR4BR
FY 2027$2,230$2,520$3,040$3,790$4,340
FY 2026$2,220$2,510$3,040$3,810$4,320
FY 2025$2,150$2,450$2,960$3,730$4,240
FY 2024$1,910$2,210$2,660$3,360$3,890
FY 2023$1,550$1,830$2,200$2,790$3,280

Two-bedroom rent in nearby Morris County ZIP codes

FY 2027 two-bedroom Small Area FMR by ZIP code
ZIP code2 bedroomvs. 07940
07928$3,250+6.9%
07930$2,570−15.5%
07931$2,980−2.0%
07932$3,350+10.2%
07933$2,610−14.1%
07934$2,750−9.5%
07935$3,300+8.6%
07936$3,350+10.2%
07940Current$3,040—
07945$2,980−2.0%
07946$2,940−3.3%
07950$3,350+10.2%

Questions about ZIP 07940 rents

How much will Section 8 pay for a two-bedroom in ZIP 07940?

Housing authorities set voucher payment standards, normally between 90% and 110% of the FMR. With the metro-wide two-bedroom FMR of $2,233, which applies unless the housing authority uses Small Area FMRs, that basic range is $2,010 to $2,456 a month; under the ZIP-level Small Area FMR of $3,040 it would be $2,736 to $3,344. The voucher pays the lower of the payment standard or the gross rent, minus the tenant's share, which is usually about 30% of adjusted monthly income. Confirm the local housing authority's current schedule before underwriting.

Which HUD fair market rent area is ZIP 07940 in?

ZIP 07940 is in the Newark, NJ HUD Metro FMR Area. Small Area FMRs are optional here; the metro-wide two-bedroom FMR is $2,233.

How much did fair market rent change in ZIP 07940 for FY 2027?

The two-bedroom FMR was unchanged at $3,040 in FY 2027. Since FY 2023 it has risen 38.2%.

When do FY 2027 fair market rents take effect?

HUD's FY 2027 fair market rents took effect on October 1, 2026. When FMRs change, housing authorities generally have up to three months to bring payment standards back within 90% to 110% of the new FMR.

Source: HUD FY 2027 Small Area Fair Market Rents and area FMRs. Payment-standard ranges are 90% to 110% of FMR, HUD's basic range, not a housing authority's published schedule. How payment standards are set

County fair market rentMadison, NJ fair market rentNJ statewide rentsWhat is SAFMR?Data sources