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 | $2,140 |
| 1 Bedroom | $2,390 |
| 2 Bedrooms | $2,750 |
| 3 Bedrooms | $3,340 |
| 4 Bedrooms | $4,210 |
| 5 Bedrooms | $4,884 |
| 6 Bedrooms | $5,470 |
| 7 Bedrooms | $5,908 |
| 8 Bedrooms | $6,203 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,340 | $936,521 | 0.36% | F |
| 4BR | $4,210 | $1,147,048 | 0.37% | F |
U.S. Census Bureau data (2024)
The Section 8 market analysis for ZIP code 07649, located in the Bergen-Passaic, NJ HUD Metro FMR Area, reveals key insights for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the area is set at $2180 per month for the fiscal year 2024. In contrast, the market rent as reported by the Census Bureau's American Community Survey (ACS) stands at $2305 per month.
This comparison indicates that voucher tenants will generally cashflow at the HUD FMR rate, but only marginally so given the slight difference between the FMR and market rent. Landlords should be prepared for potentially tighter margins when renting to voucher holders unless they focus on premium units where rents exceed the average market rate.
The median home value in ZIP 07649 is $975,072. Using the HUD FMR of $2180, we can calculate a rent-to-price ratio of approximately 0.8%. This low ratio suggests that the area is primarily rental-focused, with a strong preference for renting over buying, which could impact the local real estate market dynamics.
While the median days on market (DOM) and percentage of price cuts are not available, these metrics would be crucial in understanding how quickly properties sell and at what discount, if any. However, the strong rental market dynamics imply that the demand for rental properties remains high, which is beneficial for investors.
The strongest angle for Section 8 investors in this ZIP code is likely to be stability. Given the consistent demand for rental properties and the close alignment between HUD FMR and market rents, investors can expect reliable and steady cash flows without significant risks associated with rapid price fluctuations or market downturns.
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.