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 | $1,760 |
| 1 Bedroom | $1,980 |
| 2 Bedrooms | $2,270 |
| 3 Bedrooms | $2,760 |
| 4 Bedrooms | $3,480 |
| 5 Bedrooms | $4,037 |
| 6 Bedrooms | $4,521 |
| 7 Bedrooms | $4,883 |
| 8 Bedrooms | $5,127 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,760 | $612,208 | 0.45% | F |
U.S. Census Bureau data (2024)
A skeptical investor might question whether the Fair Market Rent (FMR) of $1,780 for ZIP code 07643 can sufficiently cover the mortgage on a home priced at $584,188. To put this into perspective, using an average mortgage rate, the monthly payment on a $584,188 home could range widely depending on down payment and loan terms. However, it's important to note that the FMR is designed to reflect the rental market, not necessarily the purchase price of homes. Landlords should also consider that the FMR is often higher than the actual rent received from Section 8 participants, so additional income sources or higher occupancy rates may be necessary.
The investor may also doubt the strength of the rental market given that only 54.3% of households in the area rent their homes. This percentage does suggest a somewhat balanced market between renters and homeowners. Yet, the critical factor is the size of the rental population relative to the number of available rental units. If the demand for rentals is strong and exceeds supply, the 54.3% figure can still represent a robust market for landlords. The data does not provide a direct measure of supply versus demand, but local real estate trends and vacancy rates can offer insights into the rental market's health.
A final concern could be whether housing vouchers will keep up with the market rent, which stands at $2,675. Historically, voucher amounts have struggled to match rising market rents, especially in areas with high costs of living. In ZIP 07643, the gap between the FMR and the market rent is significant, indicating potential challenges for voucher holders to afford market-rate units. However, landlords who participate in voucher programs can benefit from stable, government-backed payments. It's essential to monitor local adjustments to voucher amounts and understand the implications for your property's occupancy and revenue.
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.