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 | $1,630 |
| 1 Bedroom | $1,830 |
| 2 Bedrooms | $2,100 |
| 3 Bedrooms | $2,550 |
| 4 Bedrooms | $3,220 |
| 5 Bedrooms | $3,735 |
| 6 Bedrooms | $4,183 |
| 7 Bedrooms | $4,518 |
| 8 Bedrooms | $4,744 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,550 | $534,326 | 0.48% | F |
U.S. Census Bureau data (2024)
The analysis of the Section 8 program in ZIP 07503 reveals a significant gap between the Fair Market Rent (FMR) and the actual market rent. The FMR for ZIP 07503 in fiscal year 2024 is set at $1,700, while the Census American Community Survey reports the market rent at $1,677. This means the FMR is $23 higher than the market rent, representing a 1.37% premium.
This gap makes ZIP 07503 a yield play for landlords and small-portfolio investors who accept Section 8 vouchers. Despite the slightly higher FMR, the overall rental environment in 07503 is heavily skewed towards renters, with 73.2% of households renting rather than owning. Additionally, the median home value is $552,934, indicating that homeownership is less common and likely out of reach for many residents. With a median income of $60,443, many tenants rely on government assistance to afford housing.
However, it's important to note that accepting Section 8 vouchers comes with its own set of challenges. Landlords must adhere to federal inspection standards and may face delays in rent payments due to administrative processes. Moreover, the percentage of income that voucher holders contribute toward rent is typically capped at 30%, meaning landlords could receive less than the full FMR if the tenant's income is low. In ZIP 07503, where the market rent is just under the FMR, landlords might find themselves subsidizing the difference, which could be as much as $23 per unit, depending on the tenant's income.
To summarize, the slight premium of $23 or 1.37% in FMR over market rent makes 07503 a potentially profitable area for landlords who can manage the intricacies of working with Section 8 vouchers. Yet, the cost of housing voucher tenants below open-market rates should be carefully considered given the high renter population and lower median incomes.
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.