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 | $530,411 | 0.44% | F |
| 3BR | $2,810 | $631,384 | 0.45% | F |
| 4BR | $3,540 | $774,945 | 0.46% | F |
U.S. Census Bureau data (2024)
1890 is the Fair Market Rent (FMR) for ZIP code 07512 in Totowa, NJ, for fiscal year 2024. This figure represents the maximum amount Section 8 participants can be expected to pay towards their housing costs. 2072 is the average market rent for the area according to Census ACS data, indicating that landlords could potentially charge significantly above the FMR if they choose not to participate in Section 8. The median home value in Totowa stands at 659931, suggesting a relatively affluent neighborhood where property values are high. However, 26.4 percent of the population are renters, showing there is still a notable segment of the market for rental properties. 113563 is the median household income in Totowa, which is crucial for understanding the economic landscape and the potential earning capacity of tenants. The data does not provide a specific day count for days on market (DOM), but it does show that only 0.1 percent of listings experienced a price cut, indicating strong demand and stability in the local real estate market.
The disparity between the FMR and market rent presents an opportunity for landlords to either serve the needs of low-income families through Section 8 or target the broader market with higher rents. Given the high median home value and the percentage of renters, it's evident that there is a mix of homeowners and renters in Totowa. For those considering Section 8 participation, the income levels suggest that tenants may struggle to cover additional costs beyond what the program subsidizes. Yet, the low price-cut share indicates that properties in Totowa are generally well-received, implying that even Section 8 units could find stable occupancy.
A landlord or small-portfolio investor should carefully weigh the benefits of participating in Section 8 against the potential for higher market rents. While the program provides a reliable source of income, the overall economic health of the area suggests that targeting non-Section 8 tenants might yield better financial returns. Totowa's real estate market appears robust, with little indication of overstocked inventory or prolonged vacancy periods.
Based on these figures, the Section 8 verdict for Totowa, NJ, is that while participation can offer steady income, the market conditions favor targeting higher-paying tenants for greater profitability.
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.