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 | $2,360 |
| 1 Bedroom | $2,650 |
| 2 Bedrooms | $3,040 |
| 3 Bedrooms | $3,690 |
| 4 Bedrooms | $4,660 |
| 5 Bedrooms | $5,406 |
| 6 Bedrooms | $6,055 |
| 7 Bedrooms | $6,539 |
| 8 Bedrooms | $6,866 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $3,040 | $643,522 | 0.47% | F |
| 3BR | $3,690 | $856,383 | 0.43% | F |
| 4BR | $4,660 | $1,061,911 | 0.44% | F |
| 5BR | $5,406 | $1,531,864 | 0.35% | F |
U.S. Census Bureau data (2024)
ZIP 07675, located in River Vale, NJ, within the Bergen-Passaic, NJ HUD Metro FMR Area, presents an opportunity for a specific type of investment within a Section 8 portfolio strategy. This area should be considered a cash-flow anchor. The Fair Market Rent (FMR) for ZIP 07675 in fiscal year 2024 is set at $2400, while the average market rent stands at $3,587. This significant spread of $1187 between the FMR and market rent indicates that landlords can secure a steady, predictable income stream through Section 8 tenants.
The median home value in ZIP 07675 is $898,964, which suggests a high-end housing market. Despite this, the 0.1% price-cut share and the lack of a specified day on the market (DOM) indicate that the rental market is robust and less sensitive to fluctuations in the overall real estate market. This makes ZIP 07675 a reliable cash flow generator, as landlords are less likely to need to reduce rents or offer discounts to attract tenants.
Furthermore, with a renter share of 20.7%, there is a notable portion of the population already accustomed to renting, reducing the risk of vacancy. The median income of $183,154 in the area also supports the notion that ZIP 07675 can serve as a cash-flow anchor, as higher incomes generally correlate with lower default rates among tenants. Landlords can expect a stable and affluent tenant base, which will help maintain property values and minimize maintenance costs over time.
In conclusion, ZIP 07675 is best suited as a cash-flow anchor in a Section 8 portfolio due to its substantial difference between FMR and market rent, high median home value, and the presence of a stable and affluent tenant pool. These factors contribute to a reliable income source with minimal risk of vacancy or rent reduction.
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.