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 | $1,790 |
| 1 Bedroom | $2,010 |
| 2 Bedrooms | $2,310 |
| 3 Bedrooms | $2,810 |
| 4 Bedrooms | $3,540 |
| 5 Bedrooms | $4,106 |
| 6 Bedrooms | $4,599 |
| 7 Bedrooms | $4,967 |
| 8 Bedrooms | $5,215 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,310 | $565,685 | 0.41% | F |
| 3BR | $2,810 | $639,570 | 0.44% | F |
| 4BR | $3,540 | $724,368 | 0.49% | F |
U.S. Census Bureau data (2024)
The ZIP code 07506 in Hawthorne, NJ, presents an interesting balance between yield and stability. With a Fair Market Rent (FMR) of $1,910 for fiscal year 2024, it sits below the market rent of $2,339 but significantly above the potential rental income derived from the median home value of $628,595. This indicates that the area offers a decent rental yield, particularly if one can secure tenants at or near the market rate.
To understand the stability of this market, consider the percentage of renters, which stands at 30.9%. While this figure suggests a moderate level of demand for rentals, it is important to note that the average days on market (DOM) for properties is not available, which makes it difficult to assess how quickly properties are typically leased or sold. However, the median household income of $110,237 provides a strong foundation for stability, as it implies a robust economic base capable of supporting rental payments without significant default risk.
Based on these figures, ZIP 07506 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The FMR is notably lower than the market rent, indicating a reasonable margin for landlords who can manage their properties well. Additionally, the substantial median household income supports the idea that tenants are likely to be financially stable, reducing the risk of vacancy and default. Although the rental yield is not exceptionally high due to the high median home value, the combination of a moderate renter population and high income levels points to a reliable and consistent cash flow scenario for landlords and small-portfolio investors.
Investors should also take into account the potential for property appreciation, given the high median home value, which could add to the overall investment attractiveness of the area beyond just rental income. However, the primary focus based on the provided data is on the stability and reliability of cash flows, making it a solid choice for those seeking a balanced investment strategy.
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.