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 | $2,240 |
| 1 Bedroom | $2,510 |
| 2 Bedrooms | $2,880 |
| 3 Bedrooms | $3,500 |
| 4 Bedrooms | $4,410 |
| 5 Bedrooms | $5,116 |
| 6 Bedrooms | $5,730 |
| 7 Bedrooms | $6,188 |
| 8 Bedrooms | $6,497 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,510 | $370,963 | 0.68% | D |
| 2BR | $2,880 | $510,335 | 0.56% | F |
| 3BR | $3,500 | $773,085 | 0.45% | F |
| 4BR | $4,410 | $1,150,796 | 0.38% | F |
| 5BR | $5,116 | $1,618,873 | 0.32% | F |
U.S. Census Bureau data (2024)
The potential pitfalls for Section 8 investments in ZIP code 07430, located in Mahwah Township, NJ, are significant and must be carefully considered. Tenant turnover poses a substantial risk, with the market rent at $2,778 compared to the Fair Market Rent (FMR) of $2,640 for fiscal year 2024. This discrepancy can lead to higher vacancy rates, especially considering the 19-day Days on Market (DOM), which indicates a relatively quick turnaround time for vacant properties. However, it also suggests that landlords may face challenges in maintaining consistent occupancy levels due to the mismatch between market and FMR rents.
Another critical risk factor is the exposure to deferred maintenance. The typical home value in this area is $713,158, while the median household income is $131,327. These figures highlight the financial strain that landlords might experience when it comes to keeping up with necessary repairs and maintenance without receiving adequate compensation through rental income. The cost of upkeep could easily outpace the rent collected under the Section 8 program, leading to financial losses over time.
Despite these risks, there are several factors that mitigate the overall risk profile. The renter share in this ZIP code is 18.9%, indicating a relatively high concentration of renters. High renter density typically translates into greater demand for housing vouchers, which can help ensure a steady stream of tenants. This demand can stabilize occupancy rates and reduce the likelihood of prolonged vacancies.
In conclusion, the risks associated with Section 8 investments in ZIP code 07430 are moderate. While there are notable challenges related to tenant turnover and maintenance costs, the strong demand from renters provides a buffer against these risks.
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.