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 | $2,660 |
| 1 Bedroom | $2,980 |
| 2 Bedrooms | $3,420 |
| 3 Bedrooms | $4,150 |
| 4 Bedrooms | $5,240 |
| 5 Bedrooms | $6,078 |
| 6 Bedrooms | $6,807 |
| 7 Bedrooms | $7,352 |
| 8 Bedrooms | $7,720 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,420 | $642,761 | 0.53% | F |
| 3BR | $4,150 | $1,023,888 | 0.41% | F |
| 4BR | $5,240 | $1,414,000 | 0.37% | F |
| 5BR | $6,078 | $2,312,987 | 0.26% | F |
U.S. Census Bureau data (2024)
The Section 8 program in ZIP code 07670, which encompasses Tenafly, New Jersey, presents a significant opportunity for landlords and small-portfolio investors due to the substantial gap between the Fair Market Rent (FMR) and the actual market rent. For fiscal year 2024, the FMR is set at $2840, while the Zillow Rent Index (ZORI) indicates that the average market rent stands at $6100. This means that the FMR is approximately $3260 lower than the market rent, representing a 53.4% discount.
The disparity between these figures suggests that landlords can achieve higher yields by accepting Section 8 vouchers compared to renting to open-market tenants. However, it's important to note that the cost of housing voucher tenants below open-market rates also comes with considerations. Landlords must adhere to HUD standards, which can sometimes necessitate additional maintenance costs and limit the ability to raise rents as freely as in the open market.
Tenafly, NJ, has a rental population of 28.3%, indicating a moderate demand for rental properties. The median home value in the area is $1,260,435, and the median household income is $208,200. These figures highlight the affluent nature of Tenafly, where homeownership is prevalent but still leaves room for rental opportunities, especially for those who may not qualify for market-rate rentals due to income constraints.
In summary, the $3260 difference between the FMR and market rent in ZIP 07670 provides a compelling case for landlords to consider Section 8 tenants as a way to maximize their investment returns. While the initial rent may be lower, the stability and government backing of these leases can offer a reliable income stream, particularly in a region with high property values and incomes.
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.