Section 8 Fair Market Rent (FMR) for ZIP 07502 - 2027

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

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,550
1 Bedroom	$1,730
2 Bedrooms	$1,990
3 Bedrooms	$2,420
4 Bedrooms	$3,050
5 Bedrooms	$3,538
6 Bedrooms	$3,963
7 Bedrooms	$4,280
8 Bedrooms	$4,494

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

17,158

Median Household Income

$76,790

Housing Units

4,797

Renter Percentage

44.9%

Occupancy Rate

97.9%

Renter Occupied

2,110

Housing Authorities Serving ZIP 07502

Paterson Housing Authority (Paterson, NJ) - 3,000 Section 8 vouchers
Housing Authority of the City of Passaic (Passaic, NJ) - 2,159 Section 8 vouchers
Passaic County Public Housing Agency (Wayne, NJ) - 842 Section 8 vouchers
Clifton Housing Authority (Clifton, NJ) - 270 Section 8 vouchers

When considering whether to invest in ZIP 07502 (Paterson, NJ) for Section 8 properties, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $1670 cover debt service on a property valued at $533,370?

No: The FMR of $1670 is unlikely to cover the debt service on a $533,370 property. Debt service typically includes mortgage payments, property taxes, insurance, and maintenance costs. Given the high property value, these costs would likely exceed the rental income generated by the FMR.

2) Is the market rent of $1,651 above, at, or below the FMR?

Below: The market rent of $1,651 is slightly below the FMR of $1670. This suggests that the market is undervalued compared to what the government deems fair for Section 8 tenants. Landlords might struggle to find tenants willing to pay the FMR, leading to lower occupancy rates.

3) Are 44.9% renters combined with an unknown number of days on the market (DOM) sufficient to meet demand?

It depends: With 44.9% of residents being renters, there is a significant portion of the population relying on rental housing. However, the lack of data on the average number of days properties remain on the market makes it difficult to assess the speed at which properties can be rented out. A low DOM indicates strong demand, while a high DOM could suggest challenges in finding tenants.

In conclusion, the decision to purchase a property in ZIP 07502 for Section 8 purposes hinges on the ability to manage a property with potentially lower-than-FMR rental income and a significant portion of renters. Without a clear DOM figure, the final assessment of demand remains uncertain. Landlords must weigh these factors carefully against their financial goals and risk tolerance.

Data Sources: FMR data from HUD (2027). 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.