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 | $1,810 |
| 1 Bedroom | $2,030 |
| 2 Bedrooms | $2,330 |
| 3 Bedrooms | $2,830 |
| 4 Bedrooms | $3,570 |
| 5 Bedrooms | $4,141 |
| 6 Bedrooms | $4,638 |
| 7 Bedrooms | $5,009 |
| 8 Bedrooms | $5,259 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,830 | $755,575 | 0.37% | F |
| 4BR | $3,570 | $858,273 | 0.42% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 07432 in fiscal year 2024 is set at $2,170. This figure represents the payment standard for landlords participating in the Section 8 program, meaning it's the maximum amount the government will pay toward a tenant's rent. It does not represent the actual rent you can charge, but rather the upper limit for government assistance.
To put this into perspective, the Zillow Observed Rental Index (ZORI) for the same area stands at $2,713. This indicates the average market rent in the area, which is significantly higher than the FMR. The difference suggests that landlords might need to consider a lower rental price or accept a subsidy that covers less than the full market value when entering the Section 8 program.
The demand for rentals in 07432 is strong, with 27.4% of residents being renters. This high percentage of renters points to a robust market where there are plenty of potential tenants, including those who qualify for Section 8. However, the competition for tenants willing to pay the FMR rate could be fierce, especially if other landlords are also offering units under the program.
If you're looking to acquire a property in this area, the median home value is around $731,559. This figure gives you an idea of the investment required to enter the rental market in 07432. Given the FMR and ZORI, it's important to factor in the potential income versus the acquisition cost and ongoing expenses such as maintenance and property taxes.
Before proceeding with your first Section 8 rental in 07432, ensure you verify the condition of the property against HUD's Housing Quality Standards (HQS). These standards are crucial because they determine whether a unit is eligible for the program. Failure to meet these requirements could result in delays or disqualification from the program, impacting your ability to receive the promised rental payments.
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.