Real Estate Investing in Madison, New Jersey (07940)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 07940 (Madison, 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.
- High price-to-rent: Price-to-rent ratio 25.8 — hard to cash-flow at these prices.
What’s happening in Madison, NJ (07940)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 07940 Madison
The 07940 ZIP covers a section of Madison that demands careful diligence. Prices near $1.1M look accessible, but the work to make a deal cash flow is real.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 07940 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
Stepping back, 07940 offers a low basis, the region around Madison has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
The 07940 ZIP's population of 17,675 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that clocks in at the need for careful underwriting.
tilts toward the ZIP is not uninvestable, but it is unforgiving. Section 8 landlords, local operators, and specialized value-add funds are the investor types that tend to succeed.
Here's what matters if you're considering buying a home in Madison:
Property Strategy for 07940
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 2BR | $659,754 | $3,040 | 3.3% | +6.5% | $329,877 |
| 3BR | $870,830 | $3,810 | 3.2% | +7.6% | $290,277 |
| 4BR | $1,161,819 | $4,320 | 2.7% | +9.0% | $290,455 |
| 5BR | $1,975,912 | — | — | +9.9% | $395,182 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 07940 Compare?
| Metric | 07940 | Madison | New Jersey |
|---|---|---|---|
| Home Value | $1,079,886 | $1,079,886 | $559,826 |
| 5-Year CAGR | 7.2% | 7.2% | 8.4% |
| Avg Rent | $3,485 | $3,485 | - |
| Cap Rate | 2.5% | 2.5% | - |
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 07940 (Madison, NJ). Anonymous, moderated, never written by AI.
Do you own or manage rentals in ZIP 07940 (Madison, NJ)?
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Property managers serving Morris County
Manage rentals here? List your business →Denali Property Management New Jersey specializes in condo management. summary from their website
PMI Prime Property Services offers residential, association, and commercial property management in Northern New Jersey, including marketing, tenant screening, and maintenance. summary from their website
Alliance Property Management LLC provides property management services. summary from their website
Listings are shown for convenience — Repit doesn’t endorse or vet these companies. Ratings shown come only from email-verified visitors.
📊 Market Snapshot
| Home Value | $1,079,886 |
| Monthly Rent | $3,485 |
| Price-to-Rent | 25.8:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 3.9% |
| Cap Rate | 2.5% |
| 5-Year IRR | 9.7% |
📈 Home Appreciation
| 1-Year | +11.3% ▲ |
| 3-Year CAGR | +7.7% ▲ |
| 5-Year CAGR | +7.2% ▲ |
| 10-Year CAGR | +4.7% ▲ |
🏠 Rent Trends
| 1-Year | +2.0% ▲ |
| 3-Year CAGR | +4.1% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.5%). 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 07940
Population: 17,675
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 07940
Schools in This ZIP Code
Nearby Schools (5 more)
Schools in adjacent ZIP codes that may serve this area
Briarwood School
Brooklake School
Lafayette Avenue School
Southern Boulevard School
Chatham Middle School
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 1,034 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How do home values compare in Madison, NJ?
In Madison, NJ the median home value sits at $1.1M. Against the broader NJ market, that reads as reasonable for most investors.
Do landlords face vacancy issues in Madison, NJ?
Expect elevated vacancy in Madison, NJ. Rents at $3,485/mo are absorbed by the tenant base without meaningful lag.
How strong is Madison, NJ for real estate investors?
Madison, NJ rates 3.0/5 for investability. With median values at $1.1M and rents near $3,485/mo, the market offers reasonable fundamentals for rental investors.
Are landlord laws favorable in Madison, NJ?
Rental owners in Madison, NJ deal with a tenant-protective legal framework. Most standard eviction processes run on reasonable timelines.
How deep is the rental pool in Madison, NJ?
The tenant pool in Madison, NJ is solid, supported by local employment and population fundamentals. Rents of $3,485/mo are well-absorbed by the market.
You know 07940 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 07940 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 07940 ranks in New York-Newark-Jersey City, NY-NJ-PA
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