Section 8 Fair Market Rent (FMR) for ZIP 07606 - 2027

Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$1,910
1 Bedroom	$2,140
2 Bedrooms	$2,460
3 Bedrooms	$2,990
4 Bedrooms	$3,770
5 Bedrooms	$4,373
6 Bedrooms	$4,898
7 Bedrooms	$5,290
8 Bedrooms	$5,555

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

2,770

Median Household Income

$84,527

Housing Units

952

Renter Percentage

49.7%

Occupancy Rate

97.3%

Renter Occupied

460

To determine if you should buy in ZIP code 07606 for Section 8 investment, follow this decision tree:

1) Does the Fair Market Rent (FMR) of $2,060 cover the debt service on a property valued at $699,797?

If your debt service is less than $2,060 per month, then the answer is yes. For instance, if you have a mortgage payment of $1,500 per month, the FMR clearly covers it. However, if your debt service exceeds $2,060, such as a monthly mortgage payment of $2,500, then the answer is no. The FMR does not sufficiently cover higher debt service costs.

2) Is the market rent of $1,924 above, at, or below the FMR?

The market rent is below the FMR. This means that landlords can potentially charge slightly more than the market rate for tenants participating in the Section 8 program. However, this also indicates that there might be a gap between what the average tenant pays and the FMR. Landlords should consider this when setting their rent rates.

3) Are 49.7% of residents renters, and is the number of days on the market (DOM) sufficient to indicate strong demand?

The percentage of renters is 49.7%, which is significant but does not necessarily indicate high demand alone. The data shows the DOM as "N/A," suggesting that there isn't enough information to definitively assess how quickly properties are rented. If you can find additional data indicating low DOM, this would support a positive outlook on demand.

Yes: If all three conditions are met—debt service is covered by FMR, market rent is below FMR, and there's strong rental demand—then purchasing in ZIP 07606 is advisable for a Section 8 investment.
No: If any condition is not met, especially if debt service exceeds FMR or market rent is close to FMR, then buying in this area is not recommended. High debt service costs without adequate rental income will lead to financial strain.
It Depends: If the debt service is marginally covered by FMR and the market rent is just below FMR, the decision hinges on the rental demand. If the DOM is low, indicating quick leasing, then the investment could still be viable despite the marginal coverage. Otherwise, the risks outweigh the benefits.

Data Sources: FMR data from HUD (2027). 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.