Real Estate Investing in Paterson, New Jersey (07504)
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Should you buy in 07504 (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.
- High price-to-rent: Price-to-rent ratio 27.6 — hard to cash-flow at these prices.
• Modeled rent — no observed market rent for this ZIP; the figure is estimated from HUD fair-market rent.
What’s happening in Paterson, NJ (07504)?
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Market Analysis: 07504 Paterson
The 07504 ZIP covers a section of Paterson that demands careful diligence. Prices near $594K look accessible, but the work to make a deal cash flow is real.
The 07504 ZIP can work — but only with a tight operating hand. Remote landlords and passive investors tend to struggle here more than the underwriting suggests.
Statewide comparisons place 07504 among NJ's softer markets. That context does not make the ZIP uninvestable, but it does raise the bar for due diligence.
The 07504 ZIP's population of 13,485 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that reports the need for careful underwriting.
The 07504 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Paterson:
Market Trends
Home Value History (with trend line)
📊 How Does 07504 Compare?
| Metric | 07504 | Paterson | New Jersey |
|---|---|---|---|
| Home Value | $593,508 | $483,794 | $559,826 |
| 5-Year CAGR | 7.0% | 6.6% | 8.4% |
| Avg Rent | $1,791 | $2,025 | - |
| Cap Rate | 2.4% | 2.9% | - |
Similar ZIPs Within 25 Miles
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Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 07504 (Paterson, NJ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $593,508 |
| Monthly Rent | $1,791 |
| Price-to-Rent | 27.6:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.6% |
| Cap Rate | 2.4% |
| 5-Year IRR | 9.3% |
📈 Home Appreciation
| 1-Year | +5.7% ▲ |
| 3-Year CAGR | +6.0% ▲ |
| 5-Year CAGR | +7.0% ▲ |
| 10-Year CAGR | +8.8% ▲ |
🏠 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 (2.4%). 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 07504
Population: 13,485
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 07504
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Abraham Lincoln School #6
Charles J. Riley/ School 9
Christopher Columbus School #8
Dr. Hani Awadallah School
Dr. Martin Luther King Jr. Educational Complex
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 6,904 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
What are rental rates like in Paterson, NJ?
The typical rental in Paterson, NJ commands about $1,791/mo monthly. That rent profile even-keeled cash flow against the $594K purchase basis.
What are vacancy rates like in Paterson, NJ?
Paterson, NJ vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
Does Paterson, NJ make sense for an investment property?
Paterson, NJ rates 3.0/5 for investability. With median values at $594K and rents near $1,791/mo, the market offers reasonable fundamentals for rental investors.
How do experienced investors play Paterson, NJ?
Investors usually favor careful cash-flow rentals with hands-on management in Paterson, NJ. With home values at $594K and rents near $1,791/mo, other strategies can work but produce reliable rather than outsized returns.
Where do home prices stand in Paterson, NJ?
Median home price in Paterson, NJ is near $594K, with a 5-year CAGR of 0.0%. Prices have been consistent and supportive of buy-and-hold strategies.
You know 07504 now. You don’t know where it ranks.
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How 07504 ranks in New York-Newark-Jersey City, NY-NJ-PA
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