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 | $2,100 |
| 1 Bedroom | $2,360 |
| 2 Bedrooms | $2,710 |
| 3 Bedrooms | $3,290 |
| 4 Bedrooms | $4,150 |
| 5 Bedrooms | $4,814 |
| 6 Bedrooms | $5,392 |
| 7 Bedrooms | $5,823 |
| 8 Bedrooms | $6,114 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,710 | $712,242 | 0.38% | F |
| 3BR | $3,290 | $913,069 | 0.36% | F |
| 4BR | $4,150 | $1,111,055 | 0.37% | F |
| 5BR | $4,814 | $1,518,693 | 0.32% | F |
U.S. Census Bureau data (2024)
The potential pitfalls of investing in ZIP 07645 in Montvale, NJ, under the Section 8 program are significant. First, the market rent of $3,351 contrasts sharply with the Federal Market Rent (FMR) of $2,320 for FY 2024, indicating that landlords may face lower rental income compared to the local market rate. This disparity can lead to higher tenant turnover, as tenants might struggle to afford the higher market rents outside of the Section 8 subsidy.
Vacancy exposure is another concern. The average days on market (DOM) is not available, which suggests that it may be difficult to predict how quickly properties will be rented out. High DOM can result in extended periods of non-income generation, increasing financial pressure on landlords.
Deferred maintenance poses a substantial risk due to the typical home value of $921,612 and the median income of $178,269. While property values are high, median incomes indicate that residents might have limited discretionary funds for maintenance and repairs, which could become the landlord's responsibility. This financial burden can be particularly challenging when dealing with multiple units or larger portfolios.
However, these risks are tempered by the high concentration of renters in the area, with a 20.0% renter share. A high renter density typically correlates with increased demand for housing vouchers, making it easier to find tenants willing to use Section 8 vouchers. This demand can help stabilize occupancy rates and mitigate some of the financial risks associated with vacancy and turnover.
Verdict: Moderate risk for a first-time Section 8 landlord.
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.