Investment metrics, interactive calculators, and data-driven analysis for Paterson rental properties.
Pre-filled with Paterson medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Paterson.
Paterson, NJ has a population of 157,929 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $345,000 paired with median rents of $1,620/mo produces an estimated cap rate of 2.33%.
Property taxes at 2.18% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 9.4x, homes cost about 9.4 times the local median income of $36,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: At current median prices, Paterson is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.