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 | $1,860 |
| 1 Bedroom | $2,090 |
| 2 Bedrooms | $2,400 |
| 3 Bedrooms | $2,910 |
| 4 Bedrooms | $3,680 |
| 5 Bedrooms | $4,269 |
| 6 Bedrooms | $4,781 |
| 7 Bedrooms | $5,163 |
| 8 Bedrooms | $5,421 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,910 | $624,325 | 0.47% | F |
U.S. Census Bureau data (2024)
The ZIP code 07603, located within the Bergen-Passaic, NJ HUD Metro FMR Area, presents an interesting opportunity for inclusion in a Section 8 portfolio strategy. This area serves best as a cash-flow anchor. The Fair Market Rent (FMR) for ZIP 07603 in fiscal year 2024 is set at $1850, while the market rent stands at $1941. This indicates a relatively small spread of just $91 between the FMR and market rent, making it easier for landlords to maintain positive cash flow.
A cash-flow anchor is crucial for any investment portfolio, providing stability and consistent income. In ZIP 07603, the low spread means that landlords can expect steady rental income without significant fluctuations. Additionally, the median home value of $604,394 suggests a robust local economy, which supports the demand for housing and helps ensure that rents remain stable over time.
While there are no specific percentages for price-cut shares or days on the market (DOM), these metrics typically indicate opportunities for appreciation. However, given the tight spread between FMR and market rent, appreciation plays are less likely to be the primary focus in ZIP 07603. Instead, the emphasis should be on maintaining a reliable income stream.
ZIP 07603 also offers some diversification benefits. With a renter share of 32.6%, landlords can expect a moderate level of tenant occupancy, which helps mitigate risks associated with high vacancy rates. Furthermore, the median income of $103,299 provides assurance that tenants will have the financial capability to meet their rent obligations, reducing the likelihood of default.
In summary, ZIP 07603 is best suited as a cash-flow anchor within a Section 8 portfolio strategy due to the minimal spread between FMR and market rent, combined with a strong local economy indicated by the high median home value. This makes it an ideal location for landlords seeking stable and predictable returns on their investments.
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.