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 | $2,410 |
| 1 Bedroom | $2,700 |
| 2 Bedrooms | $3,100 |
| 3 Bedrooms | $3,760 |
| 4 Bedrooms | $4,750 |
| 5 Bedrooms | $5,510 |
| 6 Bedrooms | $6,171 |
| 7 Bedrooms | $6,665 |
| 8 Bedrooms | $6,998 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,760 | $1,023,307 | 0.37% | F |
| 4BR | $4,750 | $1,289,242 | 0.37% | F |
| 5BR | $5,510 | $1,751,120 | 0.31% | F |
U.S. Census Bureau data (2024)
To determine if a landlord should invest in ZIP code 07481 for Section 8 properties, follow this decision tree based on the given data:
1) Does FMR $2590 (zip FY 2024) clear debt service on a $1,118,943 property?
No. The Fair Market Rent (FMR) of $2,590 per month is insufficient to cover the debt service on a property valued at $1,118,943. Assuming a typical mortgage rate and term, the monthly payment would likely exceed this amount, making it financially unviable without additional income sources.
It depends. This scenario would only be possible if the landlord can secure a low-interest loan or has significant equity in the property, reducing the monthly debt service. However, this is an exception rather than the norm. For most cases, the answer is no.
2) Is market rent $2,567 (Census ACS) above, at, or below FMR?
Below. The market rent of $2,567 is slightly below the FMR of $2,590. This indicates that the rental market is close to the government-set rates but does not provide a substantial buffer. Landlords might find it challenging to maintain profitability purely on market rents without participating in the Section 8 program.
At. If the market rent were exactly at the FMR, it would still be below the necessary threshold to cover the debt service on a property of this value. This would further support the conclusion that the investment is not advisable without other considerations.
Above. While the market rent is not significantly higher than the FMR, it being just below suggests that there is little room for profit outside of the Section 8 program. Landlords should consider other factors such as property management costs and vacancy rates before making a decision.
3) Are 7.3% renters + N/A-day DOM enough demand?
No. With only 7.3% of the population renting, demand for rental properties is relatively low. Additionally, the Days on Market (DOM) figure is not available, which means we cannot assess how quickly units are typically filled. Low demand and potentially long vacancy periods could make it difficult to sustain a Section 8 property in this area.
It depends. If the landlord can identify a niche market or if the demand for Section 8 housing is higher than the general rental market, then the investment might still be viable. However, the lack of DOM data and low rental percentage suggest caution. The landlord must ensure that the property is attractive to Section 8 tenants and that there is sufficient demand in the local housing assistance program.
In summary, based on the provided data, the decision to purchase a property in ZIP code 07481 for Section 8 purposes is generally not advisable due to the high property value relative to the FMR and market rent, as well as the low overall rental demand. However, specific circumstances or market conditions not reflected in these figures could alter this conclusion.
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.