Residents of New Jersey may have to wait until March 2025 to receive their ANCHOR payments. Affordable New Jersey Communities for Homeowners and Renters, also known as ANCHOR, provides property tax relief to both homeowners and tenants who reside in New Jersey. The application deadline to be part of the program for 2025 was December 6th of this year. If you applied at the very last stretch, your payment will only appear in March of the new year.
ANCHOR: Providing relief for homeowners and renters
Across the country, there are various state initiatives which are aimed at providing financial relief to citizens. The ANCHOR program is one such initiative which is specifically designed to address the high rental and homeowner costs in New Jersey. According to a study published by Harvard this year, one-third of residents of New Jersey spend at least 30% of their income on housing.
In addition to this, 25% of residents spend at least half of their salary on rent or homeownership costs with 27% of renters reporting that they spend at least half of their income on rent. Amidst the homeowner cost-of-living crisis in New Jersey, the ANCHOR program has been helping to provide much needed tax relief for residents who own or rent property in New Jersey as their main home provided that they meet certain income limits.
Eligibility criteria for ANCHOR
If you are a homeowner, you are eligible to benefit from the ANCHOR program in 2025 if you meet the following requirements:
- You were/are a New Jersey resident; and
- You owned and occupied a home in New Jersey that was your principal residence (main home) on October 1, 2021; and
- 2021 property taxes were paid on that home; and
- Your 2021 New Jersey gross income was not more than $250,000.
If you are a renter, you are eligible to receive benefits in 2025 if you meet the following criteria:
- You were/are a New Jersey resident; and
- Your 2021 New Jersey gross income was not more than $150,000; and
- Your name was on the lease or rental agreement; and
- You paid rent; and
- You rented and occupied a residence in New Jersey that was your principal residence (main home) on October 1, 2021; and
- The rental property was subject to local property taxes, (see Qualified and Non-Qualified Rental Properties).
Benefits for eligible residents for 2025 range between $400 and $1,750. Homeowners can receive between $1,000 and $1,750, depending on their income and the value of their property. Renters will be able to receive between $400 and $700. The final day to apply to receive payments was December 6th 2024. Payments are distributed within 90 days applying, meaning that if you applied this time of the year, you will receive your payment in March 2025.
The rental crisis across the nation
The rental crisis has become a significant issue for many across the nations and the world, with skyrocketing rent prices leaving renters stuck paying far more than homeowners. In many cities, rent prices have surged and are outpacing wage growth and forcing renters to dedicate a larger portion of their income to housing. This has created a growing divide between renters and homeowners, as those who own property benefit from rising home values and fixed mortgage payments while renters face the burden of ever-increasing rent.
The imbalance is further exacerbated by limited affordable housing options, exacerbating financial insecurity for renters. Many renters are trapped in a cycle of high rental costs with little hope of achieving homeownership due to escalating property prices and rising interest rates and difficulty with getting approved for a loan despite paying in rent for more than what mortgage payments would be. As rents continue to climb, the gap between the experiences of renters and homeowners widens, highlighting the need for stronger rental protections, affordable housing initiatives, and policies aimed at alleviating the housing affordability crisis.
