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 | $1,850 |
| 1 Bedroom | $2,070 |
| 2 Bedrooms | $2,380 |
| 3 Bedrooms | $2,890 |
| 4 Bedrooms | $3,650 |
| 5 Bedrooms | $4,234 |
| 6 Bedrooms | $4,742 |
| 7 Bedrooms | $5,121 |
| 8 Bedrooms | $5,377 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 1BR | $2,070 | $273,969 | 0.76% | D |
| 2BR | $2,380 | $456,207 | 0.52% | F |
| 3BR | $2,890 | $578,320 | 0.5% | F |
| 4BR | $3,650 | $627,734 | 0.58% | F |
U.S. Census Bureau data (2024)
The Fair Market Rent (FMR) for ZIP code 07442, Pompton Lakes, NJ, is set at $1930 for fiscal year 2024. This figure represents the payment standard under the Section 8 Housing Choice Voucher program, which is the amount that the government will pay towards the rent for eligible tenants. It is important to note that this is not the rent you can charge your tenant; it is the maximum amount that the voucher will cover.
In comparison, the typical market rent in this area, as indicated by the Zillow Rent Index (ZORI), is around $2,750. This means that landlords participating in the Section 8 program will receive less than the average market rent, but they will have a guaranteed payment from the government and a stable source of income.
The 19.6% renter share indicates that nearly one-fifth of the population in Pompton Lakes relies on renting their homes. This suggests a reasonable demand for rental properties, including those that might be suitable for Section 8 tenants. With an acquisition cost of approximately $547,984, this is the average price for a property in this ZIP code, giving you an idea of the investment required to enter this market.
Before deciding to participate in the Section 8 program with a rental property in ZIP 07442, verify that your property meets the minimum housing quality standards known as Housing Quality Standards (HQS). These standards ensure that the property is safe, decent, and sanitary for tenants. Meeting these requirements is essential for approval and maintaining eligibility in the program.
Participating in Section 8 can provide financial stability and a steady stream of income, though it comes with the trade-off of receiving a lower rent compared to the market rate. The demand for rental properties in Pompton Lakes is solid, given the renter share percentage, and the acquisition cost reflects the typical investment needed for a property in this area. By ensuring your property complies with HQS, you can proceed with confidence knowing that you meet the necessary conditions for the program.
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.