Section 8 Fair Market Rent (FMR) for ZIP 07012 - 2027

Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area

Investment Score for ZIP 07012

N/A

Monthly Rent (2BR)

$2,210

Median Price (2BR)

$N/A

1% Rule

Annual Yield

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,720
1 Bedroom	$1,920
2 Bedrooms	$2,210
3 Bedrooms	$2,680
4 Bedrooms	$3,390
5 Bedrooms	$3,932
6 Bedrooms	$4,404
7 Bedrooms	$4,756
8 Bedrooms	$4,994

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
3BR	$2,680	$663,961	0.4%	F
4BR	$3,390	$716,075	0.47%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

14,653

Median Household Income

$101,737

Housing Units

5,648

Renter Percentage

43.1%

Occupancy Rate

99.1%

Renter Occupied

2,410

ZIP code 07012, located within the Bergen-Passaic, NJ HUD Metro FMR Area, presents a unique profile when compared to typical ZIP codes in this region. The Fair Market Rent (FMR) for 07012 is set at $1870 for fiscal year 2024, which is notably lower than the market rent of $2,748. This indicates that while government-subsidized rents are capped at a lower figure, the actual rental market charges significantly more, suggesting a potential gap where landlords can offer subsidized units without drastically undercutting their income.

The median home value in ZIP 07012 stands at $653,759, which aligns closely with the broader metro area's housing values. However, the renter share of 43.1% is above average for the region, indicating a higher demand for rentals. This combination of a below-market FMR with a high renter share points towards 07012 being a sweet spot for Section 8 participation. Landlords can attract tenants who benefit from the subsidy while maintaining relatively competitive market rates on their non-subsidized units.

To further contextualize, let us consider the following:

Fair Market Rent ($1870): Lower than the market rent, making it an attractive option for landlords who wish to participate in the Section 8 program without facing significant financial pressure.
Market Rent ($2,748): Higher than the FMR, indicating a robust private rental market that can support both subsidized and unsubsidized units.
Median Home Value ($653,759): Comparable to the larger metro area, suggesting that property values are consistent with the regional trend.
Renter Share (43.1%): Above the typical rate, pointing to a strong demand for rental properties and potentially signaling an area where rental income is more stable.

The data suggests that 07012 is neither a value pocket nor a premium sub-market but rather a mid-tier neighborhood with favorable conditions for landlords interested in Section 8 tenancy. The high renter share combined with below-average FMR relative to market rent makes it a strategic location for those looking to balance participation in the program with market-driven rental pricing.

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.