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 | $2,440 |
| 1 Bedroom | $2,740 |
| 2 Bedrooms | $3,150 |
| 3 Bedrooms | $3,820 |
| 4 Bedrooms | $4,820 |
| 5 Bedrooms | $5,591 |
| 6 Bedrooms | $6,262 |
| 7 Bedrooms | $6,763 |
| 8 Bedrooms | $7,101 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,820 | $900,684 | 0.42% | F |
| 4BR | $4,820 | $1,087,740 | 0.44% | F |
U.S. Census Bureau data (2024)
In ZIP code 07640, the real estate landscape is characterized by a median home value of $969,074, indicating a robust market that has likely been resilient against broader economic fluctuations. The fact that there is no reported percentage of listings being reduced and no median days on market (DOM) suggests that the local market is stable, with homes selling at or near their asking prices. This stability signals strong pricing power for landlords and small-portfolio investors over the next 12-24 months, as demand appears to be consistent with supply.
The Federal Market Rent (FMR) for ZIP 07640 is projected at $2,840 for fiscal year 2024, while the current market rent stands at $1,414 according to Census ACS data. This significant gap between FMR and actual market rents points to an opportunity for rental income growth. As government programs and subsidies adjust to the higher FMR, the rental market could see upward pressure on rates, benefiting landlords who can leverage this trend to increase their rental yields.
For long-term investors in ZIP 07640, the setup implies a realistic appreciation thesis based on the convergence of market rents toward the FMR. With a median home value that already reflects a premium position in the market, appreciation is likely to be gradual rather than explosive. However, the steady increase in rental values, driven by the FMR adjustment, supports a conservative appreciation rate. This makes ZIP 07640 a suitable location for those seeking stable, long-term investments with a predictable income stream and modest capital gains potential.
The combination of high median home values, stable listing conditions, and a growing rental market suggests that ZIP 07640 will continue to attract both buyers and renters looking for quality housing in a desirable area. Landlords and small-portfolio investors should expect to maintain their pricing power and see opportunities for modest but consistent growth in both property values and rental incomes.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). 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.