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 | $2,240 |
| 1 Bedroom | $2,520 |
| 2 Bedrooms | $2,890 |
| 3 Bedrooms | $3,510 |
| 4 Bedrooms | $4,430 |
| 5 Bedrooms | $5,139 |
| 6 Bedrooms | $5,756 |
| 7 Bedrooms | $6,216 |
| 8 Bedrooms | $6,527 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $2,890 | $683,289 | 0.42% | F |
| 3BR | $3,510 | $806,386 | 0.44% | F |
| 4BR | $4,430 | $938,444 | 0.47% | F |
| 5BR | $5,139 | $1,175,819 | 0.44% | F |
U.S. Census Bureau data (2024)
The Section 8 cap rate analysis for ZIP code 07676, located in the Township of Washington, NJ, reveals some interesting dynamics when comparing federal market rent (FMR) to actual market rent. For a two-bedroom unit, the FMR for fiscal year 2024 is set at $2450 per month, while the Census ACS reports an average market rent of $2,357 per month.
To calculate the gross yield, we annualize these figures and compare them to the median home value of $813,155. The annualized FMR comes to $29,400 ($2450 x 12 months), while the annualized market rent totals $28,284 ($2,357 x 12 months).
Dividing the annualized rents by the median home value gives us the implied gross yields. For the FMR scenario, the gross yield is approximately 3.61% ($29,400 / $813,155). In the case of market rent, the gross yield drops slightly to 3.48% ($28,284 / $813,155).
Given that only 3.0% of the population in ZIP 07676 are renters, it's important to consider how realistic these yields are. The FMR-based yield suggests a marginally higher potential income, but the low renter density indicates that finding qualified tenants might be challenging. Additionally, the N/A-day days on market (DOM) data implies either a lack of recent sales activity or that rental listings are not consistently tracked, making it difficult to assess turnover rates.
In conclusion, while the FMR provides a slightly better gross yield, the actual market rent figure is more likely to reflect the true rental environment in ZIP 07676. Landlords and small-portfolio investors should factor in the local rental demand and the difficulty in securing long-term Section 8 tenants before making investment decisions.
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.