Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,620 |
| 1 Bedroom | $1,810 |
| 2 Bedrooms | $2,080 |
| 3 Bedrooms | $2,530 |
| 4 Bedrooms | $3,190 |
| 5 Bedrooms | $3,700 |
| 6 Bedrooms | $4,144 |
| 7 Bedrooms | $4,476 |
| 8 Bedrooms | $4,700 |
The economics of Section 8 housing in ZIP code 07544 (part of Bergen-Passaic County, NJ) can be explained clearly through the SAFMR (Small Area Fair Market Rent) figures provided. For a two-bedroom apartment, the SAFMR is set at $1740 per month for fiscal year 2024. This rate is specifically tailored for this ZIP code, reflecting the local rental market conditions.
A landlord participating in the Section 8 program will receive a monthly payment from the Housing Choice Voucher program, which is designed to cover a significant portion of the rent. However, it's important to understand that the actual reimbursement is based on a formula that includes both the tenant's contribution and the utility allowances. Typically, the tenant must pay 30% of their adjusted income toward rent. If we assume an average adjusted income of $2,000 per month, the tenant would contribute approximately $600 towards rent.
The voucher program covers the difference between the tenant's contribution and the SAFMR. In this case, the reimbursement to the landlord would be calculated as follows:
Note that this calculation does not include any utility allowances, which can vary depending on the household's needs. Utility allowances are additional payments made directly to the tenant to help cover costs such as electricity, gas, water, and sewer.
To determine the reimbursement gap or surplus, you need to compare the total amount received from the voucher program ($1140 plus any utility allowances) with the actual market rent for a two-bedroom apartment in ZIP 07544. Unfortunately, the local market rent data is currently unavailable, so precise comparisons cannot be made. However, if the market rent exceeds $1740, there will be a gap that the landlord must either absorb or seek additional sources to fill. Conversely, if the market rent is below $1740, the landlord could see a surplus in their monthly income.
In summary, landlords in ZIP 07544 can expect a reimbursement of around $1140 per month for a two-bedroom apartment, assuming the tenant's contribution is $600. The exact financial impact depends on the local market rent, which should be monitored closely to ensure profitability.
Data Sources: FMR data from HUD (2027).
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.