Section 8 Fair Market Rent (FMR) for ZIP 07607 - 2027

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

Investment Score for ZIP 07607

N/A
Monthly Rent (2BR)
$2,520
Median Price (2BR)
$N/A
1% Rule
0%
Annual Yield
0%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,960
1 Bedroom$2,190
2 Bedrooms$2,520
3 Bedrooms$3,060
4 Bedrooms$3,860
5 Bedrooms$4,478
6 Bedrooms$5,015
7 Bedrooms$5,416
8 Bedrooms$5,687

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
3BR $3,060 $698,334 0.44% F
4BR $3,860 $758,485 0.51% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
10,093
Median Household Income
$117,912
Housing Units
3,969
Renter Percentage
30.9%
Occupancy Rate
98.0%
Renter Occupied
1,200

ZIP code 07607 has a population of 10,093 residents, with 30.9% being renters. This indicates that it is not a renter-heavy ZIP but rather an area where homeownership is more prevalent. The median household income stands at $117,912, which provides context for the rental market dynamics.

The typical market rent in this ZIP is $1,854 per month. To understand how this compares to the local income, we calculate that the average rent consumes approximately 15.7% of the median household income. This figure is derived from dividing the monthly rent by the annual median income and multiplying by 12. It suggests that the cost of renting is relatively affordable for most households in this area.

Further comparison can be made with the Fair Market Rent (FMR), which is set at $2,230 for FY 2024. This shows that the actual market rent is below the FMR, indicating a potentially competitive advantage for landlords who can offer units at the lower $1,854 rate. However, it also implies that there might be fewer Section 8 voucher holders in this ZIP due to the higher income levels, making the demand for subsidized housing less intense compared to areas with lower median incomes.

A landlord in ZIP 07607 should expect tenants who are likely to be employed and earning close to the median household income. Given the high median income and the relatively low market rent, tenants are expected to have stable financial situations and the ability to cover rent without significant strain on their budget. They will likely be seeking quality living spaces that offer good value for money, given the disparity between the FMR and the actual market rent.

To summarize, ZIP 07607 is more homeowner-dominated than renter-heavy, with a median income that makes typical market rents affordable. While the potential for Section 8 tenants exists, the demand is not as deep as it would be in areas with lower median incomes. Landlords should focus on attracting financially stable individuals who appreciate the balance between cost and quality in this market.

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.