Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,880 |
| 1 Bedroom | $2,110 |
| 2 Bedrooms | $2,420 |
| 3 Bedrooms | $2,940 |
| 4 Bedrooms | $3,710 |
| 5 Bedrooms | $4,304 |
| 6 Bedrooms | $4,820 |
| 7 Bedrooms | $5,206 |
| 8 Bedrooms | $5,466 |
The Section 8 program in ZIP code 07602, located in Unknown, NJ, presents a unique investment scenario for landlords and small-portfolio investors. The Fair Market Rent (FMR) for the area, as set by HUD for fiscal year 2024, is $2040. However, due to the lack of current market rent data, it's challenging to compare the FMR directly to what the market is offering. This absence of market rent figures means that we cannot calculate the exact gap in dollars or percentage.
In the context of Unknown, NJ, where the specifics such as the percentage of renters, median home value, and median income are currently unavailable, it's important to understand the implications of investing in Section 8 properties. When the FMR exceeds the market rent, which could be the case here given the lack of competing market data, it makes the area a potential yield play. Voucher tenants provide a guaranteed income stream that aligns with government-set rental standards, offering stability and predictability to landlords.
Conversely, if the market rent were known and exceeded the FMR, landlords would need to consider the lower rental income from voucher tenants compared to open-market rates. This could mean accepting a lower yield or exploring ways to increase the efficiency of their investments through property management improvements or strategic location choices within the ZIP code.
The decision to invest in Section 8 properties should be made with an understanding of the local housing market dynamics and the specific needs of tenants in Unknown, NJ. While the exact financial gap remains unknown without additional market data, the consistency and reliability of Section 8 payments can be a significant factor in favor of such investments, especially in areas where there is a high demand for affordable housing.
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.