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 | $2,490 |
| 1 Bedroom | $2,790 |
| 2 Bedrooms | $3,200 |
| 3 Bedrooms | $3,890 |
| 4 Bedrooms | $4,900 |
| 5 Bedrooms | $5,684 |
| 6 Bedrooms | $6,366 |
| 7 Bedrooms | $6,875 |
| 8 Bedrooms | $7,219 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,890 | $1,121,147 | 0.35% | F |
| 4BR | $4,900 | $1,534,770 | 0.32% | F |
U.S. Census Bureau data (2024)
A skeptical investor considering ZIP 07423 might question whether the Fair Market Rent (FMR) of $2,840 for the fiscal year 2024 will sufficiently cover the mortgage on a home valued at $1,290,814. The answer lies in understanding that the FMR is set to ensure affordability for low-income households, and it does not necessarily reflect the highest possible rental income. For a property of this value, the mortgage payment would likely be higher than the FMR, making it essential to consider additional income sources or the potential for higher rents outside of the Section 8 program.
The same investor could also doubt if there's enough demand among renters who qualify for the Section 8 program, which typically serves those earning up to 7.5% of the area median income. Data indicates that there are indeed individuals and families who meet these criteria and seek affordable housing. However, the exact number of qualified renters in ZIP 07423 isn't specified in the provided data. To confidently address this objection, one would need to consult local housing authorities or review recent enrollment statistics to gauge the actual demand.
Another concern might be whether voucher payments will keep pace with the market rents, which are currently at $2,857. Historically, voucher amounts have increased over time to match inflation and rising costs. Yet, the data does not provide a forecast for future increases. It's important to note that while the voucher rate might not always perfectly align with market rents, it generally moves in the same direction. Investors should monitor local HUD announcements and budget updates to anticipate changes in voucher amounts.
To summarize, while the FMR of $2,840 won't cover the mortgage on a $1,290,814 home, the Section 8 program can still be a viable option for landlords willing to explore supplementary income sources or non-Section 8 rentals. There is evidence of demand from qualified renters, though precise numbers require further investigation. Lastly, although the data doesn't predict future voucher increases, historical trends suggest they will adjust to some extent with market rents. Continuous monitoring of local housing conditions and federal updates is recommended for any investor.
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.