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 | $1,950 |
| 1 Bedroom | $2,190 |
| 2 Bedrooms | $2,510 |
| 3 Bedrooms | $3,050 |
| 4 Bedrooms | $3,850 |
| 5 Bedrooms | $4,466 |
| 6 Bedrooms | $5,002 |
| 7 Bedrooms | $5,402 |
| 8 Bedrooms | $5,672 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $3,050 | $765,253 | 0.4% | F |
| 4BR | $3,850 | $876,463 | 0.44% | F |
U.S. Census Bureau data (2024)
The analysis of ZIP code 07657 within the Bergen-Passaic, NJ HUD Metro FMR area reveals several key points for real estate investors. The first question addresses whether the rent math works. The Fair Market Rent (FMR) for ZIP 07657 in fiscal year 2024 is set at $2150, while the market rent, measured by ZORI, stands at $2,912. This indicates that the market rent exceeds the FMR by approximately $762 per unit, suggesting that landlords may struggle to attract tenants eligible for Section 8 vouchers if they rely solely on the FMR to set their rental rates.
Regarding the affordability of acquisition, the median home value in ZIP 07657 is $779,169. With the data indicating N/A for days on the market (DOM) and the percentage of homes that had to cut their prices (price-cut share), it's challenging to assess the liquidity and pricing trends accurately. However, the high median home value suggests that purchasing properties might be expensive, which could limit the potential for profitable investments, especially for smaller portfolios.
The third point concerns tenant demand. ZIP 07657 has a population of 11,498, with 48.6% of residents being renters. This significant renter share implies a robust demand for rental housing, which is positive for landlords looking to fill units. However, the high market rent compared to the FMR could still pose challenges in finding enough eligible Section 8 tenants to meet this demand.
Verdict: While ZIP 07657 shows strong tenant demand with nearly half of the population renting, the gap between the FMR and market rent poses a challenge for landlords aiming to participate in the Section 8 program. The high median home value further complicates the situation, making property acquisition costly. Landlords should carefully consider these factors before investing in this ZIP code, focusing on strategies to bridge the rent gap and manage acquisition costs effectively.
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.