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 | $2,590 |
| 1 Bedroom | $2,900 |
| 2 Bedrooms | $3,330 |
| 3 Bedrooms | $4,040 |
| 4 Bedrooms | $5,100 |
| 5 Bedrooms | $5,916 |
| 6 Bedrooms | $6,626 |
| 7 Bedrooms | $7,156 |
| 8 Bedrooms | $7,514 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,330 | $736,806 | 0.45% | F |
| 3BR | $4,040 | $918,634 | 0.44% | F |
| 4BR | $5,100 | $1,321,156 | 0.39% | F |
| 5BR | $5,916 | $1,771,340 | 0.33% | F |
U.S. Census Bureau data (2024)
Allendale, NJ, located in ZIP code 07401, is characterized by a predominantly homeowner community with a total population of 6,865 residents. Only 18.6% of the population are renters, indicating a low demand for rental properties in the area. The neighborhood is affluent, boasting a median household income of $160,162, which is significantly above the national average. This affluence is reflected in the median home value of $1,074,425, suggesting a high-end residential market.
Turning to the rent economics, the Fair Market Rent (FMR) for ZIP 07401 for fiscal year 2024 is set at $2,710. In contrast, the actual market rent, as measured by the Zillow Observed Rent Index (ZORI), stands at $4,238. This substantial gap between the FMR and the market rent highlights the potential challenges for Section 8 landlords, as they must balance the lower government-set rents against the higher market rates demanded by local tenants.
The landscape of Allendale, NJ, makes it more suitable for a hands-on value-add buyer rather than a hands-off voucher operator. Given the limited number of renters and the significant disparity between FMR and market rent, landlords who wish to operate effectively in this ZIP code should be prepared to engage actively in property management and potentially offer amenities or services that justify the higher rents. This approach can help attract and retain tenants who might otherwise opt for non-subsidized housing due to the premium nature of the neighborhood.
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.