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 | $1,840 |
| 1 Bedroom | $2,060 |
| 2 Bedrooms | $2,370 |
| 3 Bedrooms | $2,880 |
| 4 Bedrooms | $3,630 |
| 5 Bedrooms | $4,211 |
| 6 Bedrooms | $4,716 |
| 7 Bedrooms | $5,093 |
| 8 Bedrooms | $5,348 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,880 | $817,415 | 0.35% | F |
| 4BR | $3,630 | $1,001,937 | 0.36% | F |
U.S. Census Bureau data (2024)
The Section 8 housing market in ZIP code 07661, located in the Bergen-Passaic, NJ HUD Metro FMR area, presents a nuanced opportunity for landlords and small-portfolio investors. The HUD Fair Market Rent (FMR) for the zip code is set at $2100 for the fiscal year 2024. This figure is notably below the market rent, which stands at $2,313 according to ZORI (Zillow's Observed Rent Index).
To determine the viability of cashflow for voucher tenants, it's essential to compare these two figures. With the HUD FMR at $2100 and the market rent at $2,313, landlords accepting Section 8 vouchers will experience a slight shortfall in their rental income, making cashflow marginal without premium unit considerations. However, the gap is relatively narrow, indicating that landlords can still maintain positive cashflow with efficient management practices.
The median home value in the area is $839,672, providing a useful benchmark for understanding the local real estate landscape. Using this figure, we can derive the rent-to-price ratio, which is approximately 0.25%. This low ratio suggests that the rental market is relatively affordable compared to homeownership, potentially influencing rent-versus-buy dynamics in favor of renting.
Regarding the days on market (DOM), the data is marked as N/A, implying that there isn't sufficient recent transaction data to provide an accurate average. Similarly, the price-cut share is reported at 0.1%, indicating that sellers rarely need to reduce their asking price to attract buyers. These factors combined suggest that the market is stable, with little pressure on landlords to lower rents to compete.
The strongest angle for Section 8 investors in ZIP 07661 is stability. While cashflow may be marginal due to the slight difference between HUD FMR and market rent, the stable market conditions and the favorable rent-to-price ratio offer a reliable investment environment. Stability ensures consistent occupancy rates and steady income streams, which are crucial for long-term investment success.
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.