10 New Jersey cities ranked by estimated cap rate. The average cap rate across New Jersey markets is 2.5%, with median home prices averaging $574K and rents averaging $2,667/mo. Vineland leads with a 3.9% cap rate at a $270K median price. Note that New Jersey's average property tax rate of 2.18% is above the national average — factor this into your underwriting.
New Jersey offers 10 investable rental markets tracked by CapRateCity. The state average cap rate of 2.5% is near the 3.81% national average. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: New Jersey home prices average $574K, which is 72% above the national average of $333K. Rents average $2,667/mo.
Taxes and costs: Property taxes average 2.18% across New Jersey, above the 1.08% national average — investors should model tax expense carefully. Jersey City has the lowest rate at 2.08%.Vacancy averages 5.8%, in line with national norms.
Growth outlook: Population growth across New Jersey averages 0.28% per year, led by Jersey City at 0.8%. Home values are appreciating at 2.5% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: New Jersey is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.