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 | $2,050 |
| 1 Bedroom | $2,300 |
| 2 Bedrooms | $2,640 |
| 3 Bedrooms | $3,210 |
| 4 Bedrooms | $4,050 |
| 5 Bedrooms | $4,698 |
| 6 Bedrooms | $5,262 |
| 7 Bedrooms | $5,683 |
| 8 Bedrooms | $5,967 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,640 | $514,618 | 0.51% | F |
| 3BR | $3,210 | $630,664 | 0.51% | F |
| 4BR | $4,050 | $659,177 | 0.61% | D |
U.S. Census Bureau data (2024)
The ZIP code 07407, located in Elmwood Park, NJ, presents a dynamic rental market that reflects current economic conditions and tenant preferences. The Fair Market Rent (FMR) for ZIP 07407 in fiscal year 2024 is set at $2190, while the actual market rent, as measured by Zillow's ZORI index, stands slightly higher at $2,404. This indicates that the rental market in Elmwood Park is robust and commands a premium over government-set benchmarks.
A 0.2% price-cut share suggests that landlords rarely need to lower their asking rents to attract tenants, implying strong demand. The median home value of $616,967 places Elmwood Park within a middle-to-upper-middle-class bracket, which typically supports a stable housing market. However, the lack of data on days on market (DOM) prevents a precise assessment of how quickly homes are selling, though the low price-cut share suggests a brisk pace.
The 42.5% renter share is significant, indicating that nearly half of the households in Elmwood Park choose to rent rather than own. This high percentage of renters suggests a consistent long-term housing pressure, as a substantial portion of the population relies on rental properties. Landlords and small-portfolio investors should take note of this trend, as it points to a steady demand for rental units, which can be beneficial for maintaining occupancy rates and achieving stable cash flows.
In summary, the market in ZIP 07407 is characterized by strong demand, supported by a relatively high median home value and a significant renter population. These factors combine to create a market where supply likely meets but does not outpace demand, making it an attractive area for those looking to invest in rental properties. The dynamics suggest that rental properties are well-positioned to remain in high demand, offering a reliable investment opportunity for landlords.
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.