Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,740 |
| 1 Bedroom | $1,950 |
| 2 Bedrooms | $2,240 |
| 3 Bedrooms | $2,720 |
| 4 Bedrooms | $3,430 |
| 5 Bedrooms | $3,979 |
| 6 Bedrooms | $4,456 |
| 7 Bedrooms | $4,812 |
| 8 Bedrooms | $5,053 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,240 | $495,421 | 0.45% | F |
| 3BR | $2,720 | $583,702 | 0.47% | F |
| 4BR | $3,430 | $621,399 | 0.55% | F |
U.S. Census Bureau data (2024)
The median income in ZIP code 07011, Clifton, NJ, stands at $74,194. This figure places significant pressure on households when it comes to affording the market-rate rent of $2,597 per month, known as the Zillow Rent Index (ZORI).
To put this into perspective, let's consider the financial burden this represents. A household earning the median income would spend nearly 42% of their gross monthly income on rent at the market rate. This percentage exceeds the commonly recommended guideline of not spending more than 30% of one's income on housing.
In contrast, the Fair Market Rent (FMR) for the area, set at $1,870 for fiscal year 2024, provides a more affordable option for renters. At this rate, a household could allocate just over 27% of their gross monthly income towards rent, which is much closer to the ideal spending ratio.
With 52.5% of the 38,587 population being renters, the competition among landlords is intense. The affordability gap between the market rate and the FMR means that many renters are looking for subsidized housing options to make ends meet. Landlords who cater to voucher holders might find themselves in a better position to attract tenants, especially those who cannot afford the high market rates.
The takeaway for landlords considering voucher versus cash-pay strategies is clear: while cash-paying tenants may offer higher rents, the reality of the local market suggests that a significant portion of potential renters will be unable to afford these rates. By accepting vouchers, landlords can tap into a larger pool of qualified tenants and ensure steady occupancy, even if it means receiving the lower FMR rate of $1,870. This strategy aligns with the economic realities faced by many residents in Clifton, NJ.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
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.