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 | $1,620 |
| 1 Bedroom | $1,840 |
| 2 Bedrooms | $2,110 |
| 3 Bedrooms | $2,570 |
| 4 Bedrooms | $3,280 |
| 5 Bedrooms | $3,805 |
| 6 Bedrooms | $4,262 |
| 7 Bedrooms | $4,603 |
| 8 Bedrooms | $4,833 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,110 | $589,079 | 0.36% | F |
| 3BR | $2,570 | $749,741 | 0.34% | F |
| 4BR | $3,280 | $930,193 | 0.35% | F |
| 5BR | $3,805 | $1,132,269 | 0.34% | F |
U.S. Census Bureau data (2024)
The Section 8 cap-rate analysis for ZIP code 07436 in Oakland, NJ, reveals two distinct rental income scenarios based on the Fair Market Rent (FMR) and the market rent. The annualized FMR for a 2-bedroom apartment is $2200, while the Census ACS reports the market rent at $1,391 per month.
To calculate the gross yield, we first need to determine the annual rent for each scenario. For the FMR, the annual rent would be $2200 multiplied by 12, totaling $26,400. For the market rent, the monthly rate of $1,391 multiplied by 12 gives an annual rent of $16,692. With a median home value of $749,918, the gross yield for the FMR scenario is calculated as follows:
$26,400 / $749,918 = 0.0352 or 3.52%
For the market rent scenario, the gross yield is:
$16,692 / $749,918 = 0.0223 or 2.23%
The gross yield is significantly higher under the FMR scenario compared to the market rent scenario. However, the reality of the rental market must also be considered. Given that only 7.1% of residents in Oakland, NJ are renters, the likelihood of finding a steady stream of tenants willing to pay the FMR is low. Additionally, the N/A-day Days on Market (DOM) suggests that there isn't enough data to determine how quickly properties are rented out, which can affect the stability of rental income.
Considering these factors, the market rent scenario is more realistic for most investors. It provides a clearer picture of the actual rental environment, where competition and demand dynamics are likely to keep rents closer to the reported $1,391 per month rather than the higher FMR rate. While the FMR offers a higher gross yield, it may not reflect the true rental potential in a highly owner-occupied area like Oakland, NJ.
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.