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 | $2,460 |
| 1 Bedroom | $2,760 |
| 2 Bedrooms | $3,170 |
| 3 Bedrooms | $3,850 |
| 4 Bedrooms | $4,860 |
| 5 Bedrooms | $5,638 |
| 6 Bedrooms | $6,315 |
| 7 Bedrooms | $6,820 |
| 8 Bedrooms | $7,161 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,850 | $907,288 | 0.42% | F |
| 4BR | $4,860 | $1,182,437 | 0.41% | F |
| 5BR | $5,638 | $2,065,602 | 0.27% | F |
U.S. Census Bureau data (2024)
The ZIP code 07626, located within the Bergen-Passaic, NJ HUD Metro FMR Area, serves as a strong cash-flow anchor for a Section 8 portfolio strategy. The Federal Market Rent (FMR) for this area in fiscal year 2024 is set at $2840, which is notably higher than the average market rent of $2,599. This creates a positive spread that benefits landlords participating in the Section 8 program.
Despite the relatively high FMR, the median home value in ZIP 07626 is significantly higher at $1,000,294. This indicates a robust housing market where property values are likely to remain stable or increase over time, providing a solid foundation for long-term investment. However, the primary appeal for Section 8 landlords is the guaranteed rental income, which is pegged to the FMR rather than fluctuating market rates.
The low price-cut share of 0.1% and the non-applicable days on market (DOM) suggest that the rental market is highly competitive and properties are typically rented quickly. This environment supports steady cash flow without the need for significant discounts or prolonged vacancy periods.
A further point of interest is the 21.9% renter share and median income of $170,376. While these figures do not directly influence the Section 8 program's rental rates, they indicate a substantial portion of the population relies on rental housing, and many have the financial means to afford higher rents outside of subsidized programs. This can be beneficial for landlords who wish to balance their portfolio with both Section 8 and market-rate rentals.
In summary, ZIP 07626 is best suited as a cash-flow anchor within a Section 8 portfolio due to its favorable FMR to market rent ratio and the stability provided by its high median home value. Landlords can expect consistent income with minimal risk of vacancy or price reductions, making it an attractive option for those seeking reliable 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.