Section 8 Fair Market Rent (FMR) for ZIP 07666 - 2027

Investment Score for ZIP 07666

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	$1,850
1 Bedroom	$2,070
2 Bedrooms	$2,380
3 Bedrooms	$2,890
4 Bedrooms	$3,650
5 Bedrooms	$4,234
6 Bedrooms	$4,742
7 Bedrooms	$5,121
8 Bedrooms	$5,377

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	$2,380	$516,405	0.46%	F
3BR	$2,890	$687,466	0.42%	F
4BR	$3,650	$790,699	0.46%	F
5BR	$4,234	$1,252,400	0.34%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 07666 (Teaneck, NJ) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for Teaneck, NJ, as per the 2026 data, is set at $2400 for a two-bedroom apartment. This figure represents 20.0% of the median household income in the area, which is $144,075. However, the actual rental market in Teaneck is significantly higher. The Zillow median price for a two-bedroom home is $507,787, which translates into a monthly rent that would be much higher than the FMR. The price-to-FMR ratio of 17.6x indicates that the actual rental prices are far above what the government considers fair for housing assistance purposes. This means that Section 8 voucher holders face significant constraints when trying to find suitable housing. For instance, a voucher holder looking for a three-bedroom unit would have a maximum allowable rent of $2930, but the actual market rent could be substantially higher. As a result, voucher holders often struggle to find landlords willing to accept their vouchers due to the discrepancy between the FMR and market rates. #### Affordability & Renter Profile Teaneck has a population of 41,876, with 22.5% of residents being renters. The occupancy rate stands at 97.6%, indicating a very tight rental market. Given the high median household income of $144,075, it is likely that many of the renters are middle to upper-middle class individuals who can afford higher rents. However, the remaining 20.0% of the population who rely on the 2BR FMR of $2400 would find it extremely challenging to secure housing in this competitive environment. The high occupancy rate suggests that there is little to no surplus of rental units available, making it difficult for new renters to enter the market. This tightness in the rental market is further exacerbated by the high cost of living, as evidenced by the median household income and the Zillow median price for homes. The disparity between the FMR and the actual market rent implies that the rental market is not affordable for low-income families, particularly those relying on Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 07666 presents both opportunities and challenges. The high median household income and tight rental market suggest strong demand for rental properties. However, the price-to-FMR ratio of 17.6x indicates that the actual rental prices are well above the FMR, which could limit the pool of potential tenants who can use Section 8 vouchers. To determine if this ZIP code is cash-flow positive at the FMR, we need to consider the typical rental yields. Assuming a conservative yield of 5% on the Zillow median price for a two-bedroom home ($507,787), the expected monthly rent would be approximately $2115. This is already higher than the FMR for a two-bedroom unit ($2400). Therefore, for an investor to achieve positive cash flow, they would need to charge more than the FMR, which could exclude voucher holders. Given these factors, the investment grade for Teaneck would be considered moderate to high risk for Section 8-focused investors. While the overall rental market is strong, the limited ability to attract voucher holders due to the high price-to-FMR ratio could reduce the pool of potential tenants and increase vacancy risks. #### Specific Actionable Insights 1. **Target Non-Voucher Tenants**: Given the high price-to-FMR ratio, investors should focus on attracting non-voucher tenants who can pay the market rate. This would ensure better cash flow and lower vacancy rates. For example, targeting middle to upper-middle class professionals who can afford the $2115 monthly rent for a two-bedroom unit. 2. **Consider Smaller Units**: Since the FMR for smaller units (like one-bedroom apartments) is lower ($2090), investors might want to consider developing or purchasing smaller units that are more affordable for voucher holders. This could help tap into the Section 8 market while still maintaining reasonable cash flow. 3. **Explore Subsidies and Programs**: Investors should look into additional subsidies and programs that can complement Section 8 vouchers. For instance, some local governments offer additional rental assistance for low-income families. Understanding these programs could help bridge the gap between FMR and market rates, making the investment more viable. #### Bottom Line For Section 8-focused investors, the recommendation for ZIP code 07666 is to **skip** this market. The high price-to-FMR ratio makes it difficult to attract voucher holders, and the tight rental market suggests that there is little room for error. Investors who are not specifically targeting the Section 8 market might find this ZIP code more attractive, but for those focused on affordable housing, the constraints are too significant to overcome. In conclusion, while Teaneck offers a robust rental market with strong demand, the mismatch between FMR and actual market rents poses a significant challenge for Section 8 voucher holders and investors aiming to serve this demographic.

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.