What's a good cap rate in Paterson?

In Paterson, 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 Paterson deal lands versus this benchmark.

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

A typical rental in Paterson runs about $1,700–$2,200/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 Paterson deals. You can override it with the exact local rate.

Paterson, NJ

Paterson rental property analysis

Paterson is a dense, affordable northern-New-Jersey market with NYC-commuter demand and abundant multi-family stock.

Paterson 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

$1,700–$2,200/mo

est., SFR / small multi

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 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 Paterson a good place to buy rentals?

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 Jerseyinvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Paterson

Eastside Paterson

Family renters, steady demand.

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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