Location: Jersey City, 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 | $1,700 |
| 1 Bedroom | $1,910 |
| 2 Bedrooms | $2,190 |
| 3 Bedrooms | $2,660 |
| 4 Bedrooms | $3,360 |
| 5 Bedrooms | $3,898 |
| 6 Bedrooms | $4,366 |
| 7 Bedrooms | $4,715 |
| 8 Bedrooms | $4,951 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,190 | $594,455 | 0.37% | F |
| 3BR | $2,660 | $627,702 | 0.42% | F |
| 4BR | $3,360 | $712,700 | 0.47% | F |
U.S. Census Bureau data (2024)
North Arlington, NJ, ZIP code 07031, is a residential area with a population of 16,461. Over half of the residents, specifically 55.6%, are renters, indicating a significant demand for rental properties. The median household income in this neighborhood stands at $94,201, suggesting a middle-class demographic. Median home values are notably high at $619,411, reflecting the overall affluence of the area.
The Fair Market Rent (FMR) for ZIP 07031 for fiscal year 2024 is set at $1,820, which is slightly higher than the reported market rent of $1,738 according to the Census Bureau's American Community Survey (ACS). This difference can be seen as an opportunity for landlords who are willing to participate in the Section 8 program, as it allows them to charge closer to the FMR rate while still providing affordable housing options to low-income families.
Given these figures, ZIP 07031 is well-suited for both hands-off voucher operators and hands-on value-add buyers. For hands-off operators, the slightly elevated FMR compared to market rent means they can rely on the Section 8 program to cover a substantial portion of their rental costs without having to actively manage tenant selection or property maintenance beyond basic requirements. On the other hand, hands-on buyers looking to improve their investment properties could find opportunities to increase rents closer to the FMR once renovations are complete, thus maximizing their returns while still serving the needs of the community.
In conclusion, North Arlington's ZIP 07031 presents a balanced environment for Section 8 investments, with a mix of middle-class residents and a strong rental market. The current economic landscape supports both passive and active management styles, making it a viable option for various types of investors.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). 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.