What's a good cap rate in Newark?

In Newark, cap rates typically run around 5.5% (New Jersey state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Newark deal lands versus this benchmark.

What's the average rent for a rental in Newark?

A typical rental in Newark runs about $1,800–$2,400/mo (estimate; varies by neighborhood, size, and condition). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in New Jersey?

New Jersey's effective property tax rate is about 2.23% of value per year — the figure TrueCap applies by default for Newark deals. You can override it with the exact local rate.

Newark, NJ

Newark rental property analysis

Newark anchors northern New Jersey with NYC-adjacent demand, transit, and major redevelopment — strong, dense rental demand below NYC prices.

Newark market snapshot

Appreciation market

Compressed cap rates — the play here is long-term price growth over day-one cash flow.

Typical cap rate

5.5%

New Jersey state median

Typical rent

$1,800–$2,400/mo

est., SFR / small multi

Typical price

$360,000–$470,000

est., all-in

Property tax

2.23%

New Jersey effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Newark a good place to buy rentals?

NYC-overflow demand and transit keep occupancy high; New Jersey taxes and tenant rules need careful modeling. Multi-family-heavy.

See the full New Jerseyinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Newark

Ironbound

Desirable, walkable, steady demand.

Forest Hill

Historic, family renters.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Newark deal in 60 seconds

Paste a Newark address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with New Jersey tax and HUD rent so you start from the right assumptions.

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