Eastside Paterson
Family renters, steady demand.
Paterson, NJ
Is Paterson a good place to buy rental property in 2026?
Short answer: it depends on your strategy. Paterson is an appreciation-first market — its ~5.5% median cap rate (New Jersey state) sits below the ~6.5% national median, so the play is long-term price growth more than day-one cash flow. Typical rent runs $2,324–$2,835/mo; New Jersey property tax is about 2.23%.
Paterson is a dense, affordable northern-New-Jersey market with NYC-commuter demand and abundant multi-family stock.
Paterson market snapshot
Appreciation marketCompressed 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
$2,324–$2,835/mo
HUD FMR · 2–3BR · 2026
Typical price
$320,000–$430,000
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 July 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.
What rents actually look like in Paterson
One number never tells the story — HUD publishes ZIP-level Small Area Fair Market Rents for the Bergen-Passaic, NJ metro area, the metro-wide FMR region that includes Paterson, and the spread across its ZIP codes is where deals are won or lost. Same purchase price, different ZIP, very different rent.
| ZIP code | 2BR rent | 3BR rent |
|---|---|---|
| 07020 | $3,490/mo | $4,260/mo |
| 07620 | $3,280/mo | $4,000/mo |
| 07458 | $3,000/mo | $3,670/mo |
| 07630 | $2,770/mo | $3,380/mo |
| 07014 | $2,620/mo | $3,200/mo |
| 07403 | $2,480/mo | $3,020/mo |
| 07073 | $2,410/mo | $2,940/mo |
| 07436 | $2,340/mo | $2,850/mo |
| 07011 | $2,250/mo | $2,740/mo |
| 07026 | $2,130/mo | $2,600/mo |
| 07480 | $2,020/mo | $2,460/mo |
| 07074 | $1,490/mo | $1,820/mo |
Showing 12 of 114 ZIP codes in the Bergen-Passaic, NJ metro area — the HUD FMR region that includes Paterson — sampled highest to lowest across the rent range. Source: HUD FY2026 Small Area Fair Market Rents. TrueCap auto-fills the exact ZIP-level figure when you enter a Paterson address.
Why Paterson works for rental investors
Strong rental demand and multi-family supply support cash flow; New Jersey taxes are high and tenant rules strict — model both.
See the full New Jersey investing guide — taxes, landlord law & top metros →
Neighborhoods to look at in Paterson
Near downtown
Transit, dense rental demand.
Neighborhood notes are starting points, not recommendations — always underwrite the specific property.
Run a Paterson deal in 60 seconds
Paste a Paterson 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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