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 | $1,720 |
| 1 Bedroom | $1,920 |
| 2 Bedrooms | $2,210 |
| 3 Bedrooms | $2,680 |
| 4 Bedrooms | $3,390 |
| 5 Bedrooms | $3,932 |
| 6 Bedrooms | $4,404 |
| 7 Bedrooms | $4,756 |
| 8 Bedrooms | $4,994 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $2,680 | $654,833 | 0.41% | F |
| 4BR | $3,390 | $690,971 | 0.49% | F |
U.S. Census Bureau data (2024)
ZIP code 07662 presents an interesting balance between yield and stability for real estate investors. The Fair Market Rent (FMR) for the area is set at $2180 for fiscal year 2024, which is notably higher than the current market rent of $1819. This discrepancy suggests that properties in this ZIP could potentially command higher rents, thereby offering a strong yield opportunity.
The median home value in ZIP 07662 stands at $625,904, indicating a relatively expensive market. However, the FMR being significantly above the market rent implies that there's room to increase rental income without necessarily increasing the property value, thus providing a solid yield advantage. For instance, a landlord could see a potential increase of approximately $361 per month by renting at the FMR rather than the current market rate.
Regarding stability, ZIP 07662 has 22.6% of its residents as renters, which is a moderate figure. While this percentage is not exceptionally high, it does suggest that there is a stable demand for rental properties. The lack of data on days on market (DOM) makes it challenging to assess how quickly properties can be rented out, but the median household income of $110,380 indicates that tenants should have a good capacity to pay rent, contributing to overall financial stability.
In conclusion, ZIP 07662 leans towards a steady-cashflow zone due to the combination of reasonable renter percentages and high median incomes. However, the significant gap between the FMR and the market rent also points to a high-yield potential. Investors should focus on properties where they can achieve rents closer to the FMR without drastically increasing their investment costs, ensuring both yield and stability are maintained.
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.