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 | $2,040 |
| 1 Bedroom | $2,290 |
| 2 Bedrooms | $2,630 |
| 3 Bedrooms | $3,190 |
| 4 Bedrooms | $4,030 |
| 5 Bedrooms | $4,675 |
| 6 Bedrooms | $5,236 |
| 7 Bedrooms | $5,655 |
| 8 Bedrooms | $5,938 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,190 | $850,642 | 0.38% | F |
| 4BR | $4,030 | $1,002,744 | 0.4% | F |
U.S. Census Bureau data (2024)
The ZIP code 07656 presents an interesting balance between yield and stability for real estate investors. With a Fair Market Rent (FMR) of $2,090 for fiscal year 2024, it falls below the market rent of $3,258. This indicates a moderate yield potential where properties can be rented out at rates above the FMR but not necessarily at the highest market rates.
The median home value in ZIP 07656 is $843,345, which is significantly higher than both the FMR and market rent figures. This suggests that while there is potential for rental income, the primary asset value remains high, indicating a stable investment environment.
Renters make up 19.0% of the population, which is relatively low compared to typical rental markets. This implies that demand for rental properties might be somewhat limited, affecting the ability to quickly turn over units. However, the lack of data on days on market (DOM) makes it difficult to assess how quickly homes can be rented out once they become available.
The average household income in ZIP 07656 is $171,029, which is quite substantial. This high income level supports the potential for higher rents and suggests that tenants in this area are likely to have a strong ability to pay, contributing to the stability of cash flow.
Based on these figures, ZIP 07656 leans towards being a steady-cashflow zone rather than a high-yield/low-stability flip-style market. The combination of a decent rental rate relative to the FMR and a high median home value points towards a conservative investment strategy. While the percentage of renters is lower, the income levels provide a solid foundation for consistent payments and long-term tenancy.
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.