ZIP Code · NJ

ZIP 07940

Part of Madison, NJ

Pop. 17,610·Morris County·12th most expensive ZIP in New Jersey

Median rent (all units)

$3,423/mo

Year-over-Year

+1.9%

Month-over-Month

+0.2%

vs US Median

+$1,491

Reported rents

Stable (Monthly)

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Most AffordableMost Expensive

ZIP 07940 · $3,423

More expensive than 95% of US ZIP codes · National median $1,932/mo

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Medians by bedroom

Rent by unit size

Studio

$2,220

1 BR

$2,510

2 BR

$3,040

3 BR

$3,810

4 BR+

$4,320

Research median

$3,040/mo

Bedroom estimates are gross rents that include essential utilities (electricity, water, gas, sewer, trash).

Rent trends

12-month history

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Last updated: October 17, 2026

From the history

What the numbers show

Compared with the peak

Rent in ZIP 07940 is 0.9% below its high of $3,455 in December 2025, at $3,423 as of September 2026.

Past year vs. the rest of New Jersey

Rent in ZIP 07940 changed +1.9% over the year to September 2026. Across the 149 New Jersey ZIP codes Zillow tracks, the typical change was +2.8%.

Recent direction

Rent rose in 7 of the last 12 months.

What a typical income covers

30% of the median household income ($172,708) is $4,318 a month. That covers HUD's Fair Market Rent for up to a 3-bedroom ($3,810); a 4-bedroom is $4,320.

Cheaper nearby

ZIP 07901, 4 miles away, rents for 13% less ($2,977/mo), about $5,400 a year in savings.

From Zillow's monthly rent index (ZORI) for ZIP 07940. Income is the Census median household income (5-year estimates). Fair Market Rents are HUD’s, which include utilities.

Annual cost

$41,076/yr

At $3,423/mo median

Location

CityMadison

StateNJ

CountyMorris County

Rent Market Meter

Landlord's Market

Renter's MarketBalancedLandlord's Market

Rents are climbing (1.9% YoY), so leverage tilts toward landlords. Act sooner rather than later.

Based on rent-price momentum (+1.9% YoY, +0.2% MoM), not inventory.

Demographics

Who lives here

ZIP 07940 (Madison, NJ) is majority owner-occupied, has a median income above the national average, 74.2% of residents hold a bachelor's degree or higher.

Population

17,610

Median income

$172,708

Median age

35.3

Renters

36%

Age distribution

21.7%

28%

24.6%

13.1%

12.6%

Under 1821.7%

18–3428%

35–5424.6%

55–6413.1%

65+12.6%

Gender

47.8%

52.2%

Male47.8%

Female52.2%

Race & ethnicity

74.5%

13.5%

White74.5%

Black2.7%

Hispanic13.5%

Asian6.3%

Other2.9%

Education (25+)

13.5%

74.2%

No HS diploma2.9%

HS diploma13.5%

Some college9.5%

Bachelor's+74.2%

Housing tenure

64%

36%

Owner64%

Renter36%

Source: U.S. Census Bureau · ACS 2024 5-Year Estimates

2023 vs 2026

How ZIP 07940 in Madison, NJ has changed in 5 years

Rent

$2,972 → $3,423

up 15.2%

Income

$152,469 → $172,708

up 13.3%

Population

18,054 → 17,610

down 2.5%

Renter share

35.8% → 36%

+0.2 pts

Bachelor's+

69.8% → 74.2%

+4.4 pts

Median age

36.1 → 35.3

-0.8 yrs

Across the past five years, the going rent in ZIP 07940 in Madison, NJ has shifted from $2,972 to $3,423, up 15.2% since 2023. Local incomes tracked alongside that move, going from a median of $152,469 in 2021 to $172,708 more recently. Census counts show ZIP 07940 in Madison, NJ losing about 444 residents over the five-year window, down 2.5% on net. Bachelor's-degree-or-higher attainment moved from 69.8% to 74.2% across the same window. These shifts give renters and would-be renters a longer baseline for sizing up today's listings against the ZIP 07940 in Madison, NJ market of 2023.

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Local insights

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About renting in ZIP 07940

Last updated: October 17, 2026

ZIP code 07940 covers Madison, NJ. The median rent here is $3,423/mo as of October 2026. A 1-bedroom rents for a median of $2,510/mo. A 2-bedroom rents for a median of $3,040/mo.

At 24% of local median household income ($172,708/yr), ZIP 07940 ranks as affordable compared to the national benchmark of 30%. Rents have increased 1.9% over the past year.

FAQ

Frequently asked questions

How much income do you need to rent in ZIP 07940?

To keep rent at or below 30% of gross income, you would need to earn at least $137,000/year (about $66/hour full-time) to afford the median rent of $3,423/mo in ZIP 07940. The local median household income is $172,708/yr, so the typical household meets that bar.

Is rent going up or down in ZIP 07940?

Rent in ZIP 07940 has risen 1.9% over the past year as of September 2026. It sits 0.9% below its high of $3,455 in December 2025.

How does ZIP 07940 compare to other ZIPs in New Jersey?

ZIP 07940 is one of the pricier among New Jersey ZIP codes for rent, ranking #12 of 209 at $3,423/mo. Over the year to September 2026, rent in ZIP 07940 changed +1.9%, against a typical +2.8% across the 149 New Jersey ZIP codes Zillow tracks.