Section 8 Fair Market Rent (FMR) for ZIP 07470 - 2027

Investment Score for ZIP 07470

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,070
1 Bedroom	$2,330
2 Bedrooms	$2,670
3 Bedrooms	$3,240
4 Bedrooms	$4,090
5 Bedrooms	$4,744
6 Bedrooms	$5,313
7 Bedrooms	$5,738
8 Bedrooms	$6,025

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
1BR	$2,330	$315,918	0.74%	D
2BR	$2,670	$505,067	0.53%	F
3BR	$3,240	$704,453	0.46%	F
4BR	$4,090	$864,384	0.47%	F
5BR	$4,744	$1,053,670	0.45%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07470 (Wayne, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Wayne, NJ (ZIP 07470) in 2026 is set at $2660 for a two-bedroom unit. This figure represents 20.9% of the median household income in the area, which stands at $153,056. The FMR is intended to reflect the average rent that a tenant can afford while maintaining a reasonable standard of living. However, the actual rental market in Wayne is significantly higher than these FMRs. For instance, the Zillow median price for a two-bedroom unit is $503,561, translating to a monthly mortgage payment well above the FMR. Given the high cost of housing, tenants with Section 8 vouchers face significant constraints. The FMR for a three-bedroom unit is $3240, but this still falls far short of the actual rental costs. Landlords who accept Section 8 vouchers must ensure their rents do not exceed the FMR, which can be a challenge given the local rental market dynamics. As such, voucher holders are likely limited to smaller units or less desirable properties, which can impact their ability to find suitable housing. #### Affordability & Renter Profile With a median household income of $153,056, Wayne, NJ is considered a high-income area. Only 21.4% of the population are renters, indicating that the majority of residents own their homes. This suggests that the rental market is relatively tight, with fewer units available compared to areas with higher rental percentages. The occupancy rate of 96.8% further supports this conclusion, showing that almost all available units are occupied. Given the high median income, the typical renter in Wayne, NJ is likely to be a professional or a family with a stable income. However, the high rental prices make it difficult for lower-income individuals to afford housing, even with the assistance of Section 8 vouchers. The FMR for a two-bedroom unit is only $2660, whereas the actual median rental price is much higher, making it challenging for voucher holders to find affordable housing options. #### Investor Angle From an investor perspective, the ZIP code 07470 presents both opportunities and challenges. The FMR for a two-bedroom unit is $2660, but the actual median rental price is $503,561, which translates to a monthly mortgage payment of approximately $2014 based on a 4.5% interest rate and a 30-year fixed mortgage. This means that landlords accepting Section 8 vouchers would have to operate at a loss if they were to charge the FMR. However, the high rental prices suggest strong demand for housing in Wayne, NJ. Investors might consider focusing on properties that can command higher rents, thereby ensuring profitability. The price-to-FMR ratio of 15.8x indicates that the market is highly inflated relative to the FMR, which could present opportunities for investors willing to navigate the complexities of the rental market. #### Specific Actionable Insights 1. **Focus on Smaller Units**: Given the high price-to-FMR ratio, investors should focus on smaller units, such as one-bedroom apartments, where the FMR is $2320. This aligns better with the actual rental market, potentially allowing for cash flow positive operations. 2. **Consider Non-Voucher Tenants**: While Section 8 vouchers provide a steady stream of rental income, the high rental prices in Wayne, NJ suggest that there is a significant market for non-voucher tenants. Investors could target this segment by offering amenities and services that appeal to higher-income renters. 3. **Explore Mixed-Income Developments**: Given the high median income and tight rental market, mixed-income developments could be a viable strategy. By including a mix of units priced at or below FMR alongside market-rate units, developers can cater to both voucher holders and higher-income renters, balancing affordability and profitability. #### Bottom Line For Section 8-focused investors, the ZIP code 07470 presents a challenging environment due to the high rental prices and tight market conditions. The recommendation would be to **Skip** this area unless you are willing to invest in smaller units or explore mixed-income developments. The high price-to-FMR ratio makes it difficult to achieve cash flow positivity solely through Section 8 vouchers. Instead, investors might want to look into other ZIP codes with a more favorable balance between rental prices and FMRs.

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.