Section 8 Fair Market Rent (FMR) for ZIP 07853 - 2027

Location: Newark, NJ | Metro: Newark, NJ HUD Metro FMR Area

Investment Score for ZIP 07853

N/A

Monthly Rent (2BR)

$2,310

Median Price (2BR)

$N/A

1% Rule

Annual Yield

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	$1,690
1 Bedroom	$1,910
2 Bedrooms	$2,310
3 Bedrooms	$2,880
4 Bedrooms	$3,300
5 Bedrooms	$3,828
6 Bedrooms	$4,287
7 Bedrooms	$4,630
8 Bedrooms	$4,862

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
3BR	$2,880	$619,928	0.46%	F
4BR	$3,300	$806,660	0.41%	F
5BR	$3,828	$976,574	0.39%	F

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

Population

12,339

Median Household Income

$175,792

Housing Units

4,343

Renter Percentage

3.9%

Occupancy Rate

97.8%

Renter Occupied

167

The ZIP code 07853, located in Montvale, New Jersey, is a part of the affluent Bergen County. This area is characterized by its high median income levels and relatively low renter population, making it an interesting market for real estate investors, particularly those considering rental properties.

The Fair Market Rent (FMR) for a two-bedroom apartment in ZIP 07853 for fiscal year 2024 is set at $2,170. This figure represents the government's benchmark for what is considered affordable for low-income families, but it also indicates the rental price range for the area.
According to Census ACS data, the average market rent for a property in ZIP 07853 is $1,677. This suggests that while rents can be higher, they typically fall below the FMR, indicating a potentially competitive rental market.
The median home value in ZIP 07853 stands at $727,490. This high median value reflects the overall wealth of the community and could correlate with higher-end rental properties commanding premium prices.
Renters make up only 3.9% of the total population in this ZIP code, which means the majority of residents own their homes. This low percentage of renters might indicate a challenging market for landlords, as there is less demand relative to owner-occupied housing.
The median income for households in ZIP 07853 is $175,792. This high income level suggests that potential tenants could afford higher rents, but it also implies that many residents have the financial capability to purchase rather than rent.

The data points indicate that while the median income supports the possibility of tenants affording higher rents, the low percentage of renters and competitive market conditions may pose challenges for landlords. The high median home values suggest that any rental properties in this area should be priced to reflect the local standards, potentially offering luxury amenities to attract tenants willing to pay above average market rates. For small-portfolio investors, focusing on high-quality, well-priced units could be a strategy to succeed in this niche market. However, the limited number of potential tenants due to the low renter share means that thorough tenant screening and maintaining a high occupancy rate will be critical for profitability.

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.