Magnetic properties of nanoparticle composites, consisting of aligned ferromagnetic nanoparticles embedded in a nonmagnetic matrix, have been determined using a model based on phenomenological approaches. Input materials parameters for this model include the saturation magnetization (Ms), the crystal anisotropy field (Hk), a damping parameter (α) that describes the magnetic losses in the particles, and the conductivity (σ) of the particles; all particles are assumed to have identical properties. Control of the physical characteristics of the composite system—such as the particle size, shape, volume fraction, and orientation—is necessary in order to achieve optimal magnetic properties (e.g., the magnetic permeability) at GHz frequencies. The degree to which the physical attributes need to be controlled has been determined by analysis of the ferromagnetic resonance (FMR) and eddy current losses at varying particle volume fractions. Composites with approximately spherical particles with radii smaller than 100 nm (for the materials parameters chosen here), packed to achieve a thin film geometry (with the easy magnetization axes of all particles aligned parallel to each other and to the surface of the thin film) are expected to have low eddy current losses, and optimal magnetic permeability and FMR behavior.