Section 8 Fair Market Rent (FMR) for ZIP 07631 - 2027
Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area
Investment Score for ZIP 07631
F
Monthly Rent (2BR)
$2,580
Median Price (2BR)
$483,009
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 | $2,000 |
| 1 Bedroom | $2,250 |
| 2 Bedrooms | $2,580 |
| 3 Bedrooms | $3,130 |
| 4 Bedrooms | $3,950 |
| 5 Bedrooms | $4,582 |
| 6 Bedrooms | $5,132 |
| 7 Bedrooms | $5,543 |
| 8 Bedrooms | $5,820 |
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 |
| 1BR |
$2,250 |
$330,484 |
0.68% |
D |
| 2BR |
$2,580 |
$483,009 |
0.53% |
F |
| 3BR |
$3,130 |
$650,162 |
0.48% |
F |
| 4BR |
$3,950 |
$825,162 |
0.48% |
F |
| 5BR |
$4,582 |
$1,947,882 |
0.24% |
F |
Demographics & Housing Statistics
U.S. Census Bureau data (2024)
Median Household Income
$102,571
To determine if you should buy in ZIP 07631 (Englewood, NJ) for Section 8 investment, follow these steps:
- If the Fair Market Rent (FMR) of $2100 can cover the debt service on a $610,661 property:
- Yes: Proceed to evaluate the next criteria. This means that the rental income at the FMR level is sufficient to meet the mortgage payments and other costs associated with owning the property.
- No: Do not invest in this area. The FMR does not provide enough income to clear the debt service, making it financially unfeasible for a Section 8 property.
- If the market rent ($3,179 ZORI) is above, at, or below the FMR:
- Above: There is potential for higher returns outside of Section 8, but you must still ensure that the FMR covers your debt service. Consider the local demand for Section 8 properties before making a final decision.
- At: The market rent aligns with the FMR, which simplifies pricing your property for Section 8 tenants. Ensure that the 45.5% of renters and the unknown days on market (DOM) indicate strong enough demand to justify the purchase.
- Below: This suggests a lower market rent compared to the FMR, which could be advantageous for Section 8 investments. However, the primary concern remains whether the FMR of $2100 can cover the debt service on a $610,661 property.
- If the 45.5% of renters and the unknown DOM indicate sufficient demand:
- Yes: There is a substantial portion of the population renting, suggesting a robust market for Section 8 properties. Invest in this area if the previous criteria are also met.
- No: The demand is not high enough to support a Section 8 investment. Even if the FMR covers the debt service and the market rent is favorable, low demand will affect your ability to find tenants.
- It Depends: With an unknown DOM, you cannot fully assess the speed at which properties are rented. Investigate further into the local rental market dynamics to understand the implications of the 45.5% renters and make an informed decision.
In conclusion, the decision to invest in ZIP 07631 hinges on the FMR covering debt service, the relationship between market rent and FMR, and the strength of local rental demand. If all conditions point towards a positive outcome, then the answer is yes. Otherwise, the investment is not advisable.
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.