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 | $2,450 |
| 1 Bedroom | $2,740 |
| 2 Bedrooms | $3,150 |
| 3 Bedrooms | $3,830 |
| 4 Bedrooms | $4,830 |
| 5 Bedrooms | $5,603 |
| 6 Bedrooms | $6,275 |
| 7 Bedrooms | $6,777 |
| 8 Bedrooms | $7,116 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,830 | $1,054,923 | 0.36% | F |
| 4BR | $4,830 | $1,372,910 | 0.35% | F |
| 5BR | $5,603 | $2,076,116 | 0.27% | F |
U.S. Census Bureau data (2024)
The ZIP code 07450 is situated in a high-end residential area of New Jersey, characterized by a significant concentration of affluent households. With a total population of 26,308, this neighborhood is primarily composed of homeowners, as only 17.5% of residents are renters. The median household income stands at a robust $208,211, reflecting the area's prosperity. Moreover, the median home value in this ZIP is an impressive $1,199,701, further underscoring the premium nature of the real estate market here.
Transitioning into the economic realities of renting, the Fair Market Rent (FMR) for ZIP 07450 in fiscal year 2024 is set at $2,780. This figure is notably lower than the market rent, which is estimated at $3,763 (ZORI). This discrepancy suggests that landlords can expect a substantial gap between the subsidized rent rates and the actual market value, potentially leading to financial challenges if they rely solely on Section 8 vouchers.
In terms of investment strategy, ZIP 07450 is better suited for a hands-on value-add buyer rather than a hands-off voucher operator. Given the high median home values and incomes, there is a strong potential for value appreciation through renovations and improvements. A hands-on approach would allow investors to capitalize on the local market dynamics and maximize returns, whereas a hands-off strategy might struggle to cover costs due to the significant disparity between FMR and market rents.
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.