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 | $1,710 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,200 |
| 3 Bedrooms | $2,670 |
| 4 Bedrooms | $3,410 |
| 5 Bedrooms | $3,956 |
| 6 Bedrooms | $4,431 |
| 7 Bedrooms | $4,785 |
| 8 Bedrooms | $5,024 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,200 | $465,912 | 0.47% | F |
| 3BR | $2,670 | $512,649 | 0.52% | F |
| 4BR | $3,410 | $542,356 | 0.63% | D |
U.S. Census Bureau data (2024)
ZIP code 07420 encompasses the town of Wanaque, New Jersey, which is characterized by a relatively small population of 5,316 residents. The area is predominantly owner-occupied, with only 30.2% of the population being renters. This indicates a community where homeownership is a significant factor, reflecting a stable and possibly affluent demographic. The median household income in Wanaque is notably high at $109,278, suggesting a well-to-do populace. Furthermore, the median home value stands at $495,034, which aligns with the higher-end housing market typical of such an economically robust region.
Moving into the realm of rental economics, the Fair Market Rent (FMR) for ZIP 07420 as determined by HUD for fiscal year 2024 is set at $2,040. In contrast, the actual market rent, according to the Census Bureau's American Community Survey, is significantly lower at $1,593. This discrepancy between the FMR and the market rent presents an opportunity for landlords and small-portfolio investors looking to capitalize on the federal subsidy program while maintaining a competitive edge in the local rental market.
The hands-off voucher operator would find Wanaque suitable due to the high median income and stable tenant base, ensuring a reliable stream of rental income through the Section 8 program. However, the hands-on value-add buyer could also benefit from the area's potential for increasing property values and rents, given the substantial difference between the HUD FMR and the current market rates. This strategy would involve improving properties to justify higher rents closer to the FMR, thus maximizing returns while still attracting tenants through the Section 8 program.
In summary, Wanaque offers a mix of stability and opportunity for Section 8 investors. The high-income residents and owner-occupied homes provide a solid foundation for rental investments, while the gap between FMR and market rent opens avenues for strategic investment approaches.
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.