Real Estate Investing in Paterson, New Jersey (07501)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 07501 (Paterson, NJ)? Our answer, based on the numbers below.
Proceed carefully. Weak appreciation or affordability makes this a harder case for most buyers.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- Elevated poverty: 24.8% poverty rate — can affect rent collection.
- Lower household income: $38,776 median — tenant affordability is tighter.
What’s happening in Paterson, NJ (07501)?
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Market Analysis: 07501 Paterson
Investors eyeing 07501 need to respect the fundamentals at play. Home values of $486K come alongside slower price movement and elevated management overhead.
Rent of $1,719/mo on a $486K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 07501 sits below the stated 0.0% once reality is priced in.
Regionally, 07501 sits on the difficult end of the NJ spectrum. The an appealing option for read — for disciplined operators — is that pricing reflects the difficulty.
From a cash-flow lens, 35,321 residents fill the ZIP, renter turnover runs higher than neighboring postal codes and delinquency risk is a real line item rather than a theoretical one.
The right play in 07501 usually involves deep tenant screening, aggressive delinquency response, and a conservative capex buffer. Anything less, and the discount can turn into a trap.
Here's what matters if you're considering buying a home in Paterson:
Property Strategy for 07501
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $384,376 | $1,900 | 3.6% | +10.1% | $192,188 |
| 3BR | $428,689 | $2,320 | 3.9% | +11.5% | $142,896 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 07501 Compare?
| Metric | 07501 | Paterson | New Jersey |
|---|---|---|---|
| Home Value | $485,938 | $483,794 | $559,826 |
| 5-Year CAGR | 5.9% | 6.6% | 8.4% |
| Avg Rent | $1,719 | $2,025 | - |
| Cap Rate | 2.8% | 2.9% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 07501 (Paterson, NJ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $485,938 |
| Monthly Rent | $1,719 |
| Price-to-Rent | 23.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.3% |
| Cap Rate | 2.8% |
| 5-Year IRR | 8.7% |
📈 Home Appreciation
| 1-Year | +6.0% ▲ |
| 3-Year CAGR | +5.2% ▲ |
| 5-Year CAGR | +5.9% ▲ |
| 10-Year CAGR | +8.9% ▲ |
🏠 Rent Trends
| 1-Year | -8.0% ▼ |
| 3-Year CAGR | -0.2% ▼ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.8%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 07501
Population: 35,321
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 07501
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 5,291 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What is the best play in Paterson, NJ?
For Paterson, NJ, careful cash-flow rentals with hands-on management is the standard investor playbook. The market structure makes it a reasonable default approach.
What kind of vacancy should I budget for in Paterson, NJ?
Paterson, NJ vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
Are renters plentiful in Paterson, NJ?
Paterson, NJ draws a reliable base of working renters. Demand at the $1,719/mo rent level is reasonable for standard single-family and small multi rentals.
Are eviction rules reasonable in Paterson, NJ?
For rental operators, Paterson, NJ rates as tenant-protective. The regulatory environment standard buy-and-hold operations.
Is real estate in Paterson, NJ a good investment right now?
Paterson, NJ scores 3.0/5 for investability. Home values sit at $486K and rents near $1,719/mo, which keeps the rent-to-price ratio in reasonable territory for buy-and-hold investors.
You know 07501 now. You don’t know where it ranks.
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How 07501 ranks in New York-Newark-Jersey City, NY-NJ-PA
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