Section 8 Fair Market Rent (FMR) for ZIP 07650 - 2027

Location: Bergen-Passaic, NJ | Metro: Bergen-Passaic, NJ HUD Metro FMR Area

Investment Score for ZIP 07650

F
Monthly Rent (2BR)
$2,530
Median Price (2BR)
$666,498
1% Rule
0.38%
Annual Yield
4.56%

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size Monthly FMR
Studio$1,960
1 Bedroom$2,200
2 Bedrooms$2,530
3 Bedrooms$3,070
4 Bedrooms$3,880
5 Bedrooms$4,501
6 Bedrooms$5,041
7 Bedrooms$5,444
8 Bedrooms$5,716

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)

Bedrooms Monthly FMR Median Price 1% Rule Grade
2BR $2,530 $666,498 0.38% F
3BR $3,070 $1,064,193 0.29% F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population
20,290
Median Household Income
$94,743
Housing Units
7,614
Renter Percentage
64.5%
Occupancy Rate
98.1%
Renter Occupied
4,820

The ZIP code 07650, located in Palisades Park, NJ, is characterized by a significant rental population. With a total population of 20,290, 64.5% of residents are renters, indicating a strong demand for rental properties. This high percentage of renters suggests that there is likely a substantial pool of Section 8 tenants available, given the prevalence of rental housing.

The median household income in this area stands at $94,743, which provides a benchmark for assessing the affordability of housing. The average market rent in ZIP 07650 is $3,141 per month, representing approximately 38.4% of the median household income. This percentage is calculated by dividing the annual rent ($37,692) by the median household income ($94,743), and it highlights the significant portion of income that renters must allocate towards housing costs.

In comparison to the Fair Market Rent (FMR) set at $2,090 for FY 2024, the market rent of $3,141 is notably higher. This disparity indicates that landlords in this area may find it challenging to attract tenants who solely rely on Section 8 vouchers, as the voucher amount is lower than the prevailing market rates. However, the high demand for rentals could still make Section 8 vouchers a viable option for landlords, especially those willing to accept a slightly lower rent or those with properties that align closely with the FMR.

A landlord in ZIP 07650 can expect a diverse tenant pool, including families and individuals who may benefit from Section 8 assistance. These tenants will likely have a combined income that allows them to contribute the difference between the FMR and the market rent. Given the strong rental market, landlords should be prepared to offer competitive amenities and maintain high standards of property management to attract and retain tenants effectively.

To summarize, ZIP 07650 presents a robust opportunity for landlords interested in Section 8 tenants due to its high percentage of renters. However, they should be aware that typical rents consume a considerable portion of local incomes and exceed the FMR. Landlords should anticipate a tenant base that requires some financial assistance but is capable of contributing to the overall rent cost.

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.