Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area
| Unit Size | Monthly FMR |
|---|---|
| Studio | $2,160 |
| 1 Bedroom | $2,420 |
| 2 Bedrooms | $2,780 |
| 3 Bedrooms | $3,380 |
| 4 Bedrooms | $4,260 |
| 5 Bedrooms | $4,942 |
| 6 Bedrooms | $5,535 |
| 7 Bedrooms | $5,978 |
| 8 Bedrooms | $6,277 |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 07641 is characterized by a significant disparity between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2290, whereas the Census American Community Survey (ACS) reports an average market rent of $3,501. This means that landlords can charge approximately $1211 more than the FMR if they choose not to participate in the Section 8 program.
To put this into perspective, the gap between the FMR and the market rent is about 34.6%, indicating that landlords who accept Section 8 vouchers receive less than the open-market rate for renting their properties. This discrepancy suggests that participating in the Section 8 program could result in a lower rental income compared to the market rate. However, it's important to consider the broader economic context of the area. In ZIP 07641, only 5.3% of residents are renters, which implies a predominantly owner-occupied market. The median home value stands at $1,193,545, reflecting a high-end residential area. Meanwhile, the median income is $236,765, suggesting that residents have the financial capacity to afford higher rents.
The cost of housing voucher tenants below open-market rates is a trade-off that landlords must weigh against the benefits of guaranteed rental payments through the Section 8 program. While the FMR is lower than the market rent, the stability provided by the government-backed vouchers can be advantageous in a market where rental demand is relatively low. Additionally, the Section 8 program offers a steady stream of income, which can be particularly appealing to small-portfolio investors looking for reliable returns.
For landlords considering whether to participate in the Section 8 program, it's crucial to evaluate the local rental market dynamics. Given the high median home values and incomes, there might be opportunities to attract non-voucher tenants willing to pay the higher market rents. However, the Section 8 program can still be a viable option for maintaining occupancy rates and ensuring a consistent cash flow, especially in a zip code where the rental population is limited.
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.