Section 8 Fair Market Rent (FMR) for ZIP 07480 - 2027

Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area

Investment Score for ZIP 07480

F
Monthly Rent (2BR)
$1,920
Median Price (2BR)
$364,948
1% Rule
0.53%
Annual Yield
6.31%

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$1,490
1 Bedroom$1,670
2 Bedrooms$1,920
3 Bedrooms$2,330
4 Bedrooms$2,940
5 Bedrooms$3,410
6 Bedrooms$3,819
7 Bedrooms$4,125
8 Bedrooms$4,331

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
1BR $1,670 $293,734 0.57% F
2BR $1,920 $364,948 0.53% F
3BR $2,330 $537,726 0.43% F
4BR $2,940 $657,521 0.45% F
5BR $3,410 $790,904 0.43% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
14,966
Median Household Income
$132,676
Housing Units
5,979
Renter Percentage
10.4%
Occupancy Rate
95.4%
Renter Occupied
591

The ZIP code 07480, located in West Milford, NJ, has a population of 14,966, with only 10.4% being renters. This indicates that it is primarily a homeowner-dominated area rather than a renter-heavy zone. The median household income in this ZIP code is significantly high at $132,676, which contrasts sharply with the market rent of $2,700.

To understand the impact on potential tenants, consider that the average rent consumes about 20% of the median household income. This is calculated by taking the annual rent ($2,700 x 12 months = $32,400) and dividing it by the median household income ($132,676), resulting in approximately 24.4%. This percentage is higher than what many would consider affordable, typically around 30% of income.

Comparing the market rent to the Fair Market Rent (FMR) of $1,940 for FY 2024, it's evident that the market rent in West Milford exceeds the FMR by about $760 per month. This gap suggests that landlords might face challenges in attracting tenants who rely solely on Section 8 vouchers, given that these vouchers are generally capped at the FMR level.

The type of tenant profile landlords should expect in this area includes individuals or families who either have additional sources of income beyond the typical household income, or those who are willing to allocate a larger portion of their budget towards housing costs. Given the low percentage of renters and the high median income, the demand for Section 8 vouchers is likely to be shallow compared to areas with higher renter populations and lower median incomes.

In conclusion, while there is a small pool of potential Section 8 tenants, the overall rental market in ZIP 07480 is not heavily dependent on such subsidies. Landlords should prepare for a tenant base that can afford higher rents but may still seek assistance through vouchers, albeit in limited numbers.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.