NJ rents continue to rise. Mercer County saw the biggest jump over the past year.

Hudson County remains New Jersey’s most expensive county for renters.

Estimates from the U.S. Department of Housing and Urban Development show that rental costs are still rising across New Jersey, with Mercer County seeing the largest increase over the past year.

Each year, HUD estimates the cost of a typical rental, including rent and certain utility costs, in every county and metropolitan area in the country. The figures, known as Fair Market Rents, are generally set at the 40th percentile of gross rents for typical, non-substandard rental units.

The estimates are used by housing agencies when setting payment standards for programs such as Section 8 rental assistance. They also help determine rent limits for several other affordable housing programs.

Oct. 1, the start of fiscal year 2027 for the federal government, HUD will begin using the new rates for its affordable housing programs.

The estimates, released this month, reveal a lot about rental prices across the state and how those costs have changed over time.

Mercer County, which includes Trenton, Princeton, and surrounding communities, had the largest increase for every apartment size over the past year, according to the HUD estimates. The estimated rents rose between 14.2% and 17.2%, ranging from $1,561 a month for a studio apartment to $3,081 for a four-bedroom rental.

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The largest increase in Mercer County was for three-bedroom apartments, at 17.2%. The estimated monthly rent for a two-bedroom apartment rose from $1,950 to $2,242 — an increase of $292 a month, or $3,504 a year. That was far above the statewide average increase.

Across New Jersey, estimates rose by an average of 4% for studio apartments, 3.16% for one-bedroom apartments, 2.63% for two-bedroom apartments, 1.85% for three-bedroom apartments, and 2.11% for four-bedroom apartments.

The statewide figures are unweighted averages of the county estimates. They are: $1,660 for a studio apartment, $1,786 for a one-bedroom apartment, $2,185 for a two-bedroom, $2,703 for a three-bedroom, and $3,033 for a four-bedroom apartment.

Cape May County saw large increases for smaller apartments. Its studio apartment estimate rose 14.5%, from $1,320 to $1,512. The one-bedroom estimate rose 11.3%, from $1,366 to $1,521. The increases were smaller for two-, three-, and four-bedroom apartments.

Hudson has the highest rental estimates

Hudson County, which includes Jersey City and Hoboken, had the highest HUD rental estimates in the state for every apartment size.

A studio apartment in Hudson County costs an estimated $2,462 a month. The estimate is $2,514 for a one-bedroom apartment, $2,792 for a two-bedroom, $3,392 for a three-bedroom, and $3,976 for a four-bedroom apartment. The four-bedroom estimate amounts to nearly $48,000 a year in rent.

The difference between Hudson County and some less expensive parts of the state is substantial. The four-bedroom estimate in Hudson is $1,531 more per month than the $2,445 estimate for Burlington, Camden, Gloucester, and Salem counties. That adds up to a difference of more than $18,000 a year.

Hudson’s rental estimates have risen sharply over the past decade. The studio apartment estimate increased 113.9%, more than doubling over 10 years. The one-bedroom estimate rose 96.7%, and the two-bedroom estimate increased by 83.8%.

Cape May and Warren counties also saw their studio rental rate estimates more than double over the past 10 years. Cape May’s rose 110.3%, while Warren’s increased 103%.

Warren had the largest increase for three-bedroom apartments during the 10-year period, at 77.1%. Hudson was next, at 74.3%.

Warren County, which includes Hackettstown and Oxford, is more rural and has lower median household incomes than some of New Jersey’s wealthiest counties. Warren’s rising rental cost estimates could reflect pressure from more expensive rental markets to the east, but the HUD data alone does not show what caused the increase.

High rents in higher-income counties

Hunterdon, Middlesex, and Somerset counties also had some of the state’s highest rental cost estimates.

Their HUD estimate is $2,103 per month for a one-bedroom apartment, $2,623 for a two-bedroom, and $3,508 for a four-bedroom.

Those counties also have some of New Jersey’s highest median household incomes. Hunterdon and Somerset ranked first and second in the state, according to the most recent available Census data.

Middlesex County, which includes Edison and Sayreville, ranked seventh in median household income. Its location near New York City and major North Jersey employment centers may help explain the county’s relatively high rental estimates.

Estimates vary widely elsewhere in the state. The one-bedroom estimate is $1,420 in Cumberland County, compared with $2,514 in Hudson County. For two-bedroom apartments, the estimates range from $1,704 in Cumberland to $2,792 in Hudson.

Editor Krystal Knapp contributed to this report.