Real Estate Investing in Paterson, New Jersey (07502)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 07502 (Paterson, NJ)? Our answer, based on the numbers below.
Mixed — home prices are stretched relative to local incomes. Run the math on your specific situation.
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: 21.2% poverty rate — can affect rent collection.
- Higher unemployment: 10.8% unemployment — tenant risk signal.
What’s happening in Paterson, NJ (07502)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 07502 Paterson
Not every below-median market is a bargain. Paterson's 07502 ZIP sits at signals that favor experienced operators who can absorb the risk $547K pricing implies.
Rent of $2,367/mo on a $547K basis reads well until vacancy, delinquency, and capex enter the model. The honest cap rate in 07502 sits below the stated 0.0% once reality is priced in.
The gap between 07502 and stronger Paterson ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
In practical terms, 17,488 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 07502 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 07502
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $450,368 | $1,990 | 3.2% | +9.4% | $225,184 |
| 3BR | $514,418 | $2,430 | 3.4% | +9.2% | $171,473 |
| 4BR | $548,496 | $3,100 | 4.1% | +8.8% | $137,124 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 07502 Compare?
| Metric | 07502 | Paterson | New Jersey |
|---|---|---|---|
| Home Value | $547,196 | $483,794 | $559,826 |
| 5-Year CAGR | 6.6% | 6.6% | 8.4% |
| Avg Rent | $2,367 | $2,025 | - |
| Cap Rate | 3.4% | 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 07502 (Paterson, NJ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $547,196 |
| Monthly Rent | $2,367 |
| Price-to-Rent | 19.3:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 5.2% |
| Cap Rate | 3.4% |
| 5-Year IRR | 10.0% |
📈 Home Appreciation
| 1-Year | +5.4% ▲ |
| 3-Year CAGR | +6.0% ▲ |
| 5-Year CAGR | +6.6% ▲ |
| 10-Year CAGR | +9.2% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (3.4%). 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 07502
Population: 17,488
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 07502
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Beatrice Gilmore School
Charles J. Riley/ School 9
Dr. Hani Awadallah School
Dr. Martin Luther King Jr. Educational Complex
Edward W. Kilpatrick
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 do rentals go for in Paterson, NJ?
Rents in Paterson, NJ run near $2,367/mo. Compared with median home prices of $547K that produces solid gross yields for typical rentals.
How deep is the rental pool in Paterson, NJ?
Paterson, NJ draws a even-keeled base of working renters. Demand at the $2,367/mo rent level is reasonable for standard single-family and small multi rentals.
How do home values compare in Paterson, NJ?
The median home value in Paterson, NJ is roughly $547K. That puts it reasonable relative to the NJ statewide average.
Is Paterson, NJ landlord-friendly?
The landlord environment in Paterson, NJ is tenant-protective. Statewide rules shape most day-to-day operations for rental owners.
How viable is house hacking in Paterson, NJ?
Paterson, NJ is a a challenging market for house hackers. FHA or conventional owner-occupant buyers find the $547K price point reasonable to enter.
You know 07502 now. You don’t know where it ranks.
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How 07502 ranks in New York-Newark-Jersey City, NY-NJ-PA
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