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 | $1,620 |
| 1 Bedroom | $1,820 |
| 2 Bedrooms | $2,090 |
| 3 Bedrooms | $2,540 |
| 4 Bedrooms | $3,200 |
| 5 Bedrooms | $3,712 |
| 6 Bedrooms | $4,157 |
| 7 Bedrooms | $4,490 |
| 8 Bedrooms | $4,715 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,540 | $724,785 | 0.35% | F |
| 4BR | $3,200 | $814,747 | 0.39% | F |
U.S. Census Bureau data (2024)
The classification of ZIP code 07604 hinges on its financial metrics, particularly focusing on rental yields and market stability. The Fair Market Rent (FMR) for ZIP 07604 in fiscal year 2024 is set at $1,950, which contrasts with the average market rent of $1,700. This indicates a potential premium for landlords participating in the Section 8 program, enhancing the yield on their investment.
To gauge stability, consider the percentage of renters at 32.3%, which suggests a moderate level of rental activity. However, the absence of data regarding days on market (DOM) implies an incomplete picture of how quickly properties are rented out, which could affect turnover rates and overall stability. The median household income in this area is $123,734, providing a strong economic foundation that supports higher rents and potentially lower vacancy rates.
The home value in ZIP 07604 stands at $710,569. Given the disparity between the FMR and the market rent, along with the robust median income, this ZIP code leans towards a high-yield market for Section 8 landlords. The higher FMR compared to the market rent means that landlords can secure tenants willing to pay a rate closer to the fair market value, thus maximizing rental income. Yet, the relatively low percentage of renters and the lack of DOM data temper this conclusion, indicating that while yields are promising, the market is not entirely stable. It is neither a flip-style market nor a steady cash flow zone but rather a middle-ground where careful management and tenant selection can optimize returns.
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.