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 | $2,640 |
| 1 Bedroom | $2,960 |
| 2 Bedrooms | $3,400 |
| 3 Bedrooms | $4,130 |
| 4 Bedrooms | $5,210 |
| 5 Bedrooms | $6,044 |
| 6 Bedrooms | $6,769 |
| 7 Bedrooms | $7,311 |
| 8 Bedrooms | $7,677 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,960 | $453,332 | 0.65% | D |
| 2BR | $3,400 | $691,086 | 0.49% | F |
| 3BR | $4,130 | $1,043,935 | 0.4% | F |
U.S. Census Bureau data (2024)
The economics of Section 8 housing in ZIP code 07020, Edgewater, NJ, involve understanding the SAFMR (Small Area Fair Market Rent) and how it interacts with the local rental market. For a two-bedroom apartment, the SAFMR for FY 2024 is set at $2,840. This figure represents the maximum amount the government will pay towards rent for eligible tenants under the Section 8 program.
In contrast, the local market rent for a two-bedroom unit, as indicated by ZORI (Zillow Observed Rent Index), is $3,849. This discrepancy highlights the financial dynamics landlords must navigate when participating in Section 8. The SAFMR of $2,840 is the total reimbursement amount for rent, which includes both the tenant's contribution and the utility allowance.
Landlords should be aware that the actual reimbursement they receive is calculated based on the lower of either 40% of the tenant's income or the SAFMR minus the tenant's portion. The tenant is expected to pay approximately 30% to 40% of their adjusted monthly income towards rent. If the tenant's income is such that their portion is $852 (assuming an income level where 30% is the minimum required payment), then the government would cover the remaining amount up to the SAFMR of $2,840.
Utility allowances are also part of the calculation but do not increase the total reimbursement above the SAFMR. These allowances vary and are designed to help cover electricity, gas, water, and sewage costs. However, they are not directly added to the landlord's reimbursement; instead, they are included in the overall SAFMR figure.
To summarize, if a landlord rents out a two-bedroom apartment for $2,840 in ZIP 07020, they will receive the full SAFMR reimbursement. However, if the rent is higher, say at the local market rate of $3,849, the landlord will only receive up to $2,840, leaving a significant gap of $1,009 per month. This gap must be covered by the landlord unless the tenant can afford to pay the difference, which is unlikely given the structure of the program.
Thus, the typical reimbursement gap for a two-bedroom apartment in ZIP 07020 is $1,009, reflecting the difference between the local market rent and the SAFMR set by the government for Section 8 participation.
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.