Real Estate Investing in Cape May, New Jersey (08204)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 08204 (Cape May, NJ)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 39.6% of homes vacant — above national norms.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 41.7 — 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 Cape May, NJ (08204)?
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Market Analysis: 08204 Cape May
On balance, ZIP 08204 has challenges — vacancy pressure, softer price growth, and tenant stability concerns sit alongside the $734K median. It rewards specialists, not generalists.
The investment case in 08204 is robust only for operators who understand what they are buying. A $734K median suggests accessibility, but management intensity, vacancy drift, and capex surprises are real.
Nearby ZIPs in Cape May have seen price recovery that 08204 has not matched. Cape May County data supports the view that the spread is structural rather than temporary.
Employment concentration in 08204 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
looks to 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 Cape May:
Property Strategy for 08204
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $553,524 | $1,240 | 1.6% | +8.9% | $553,524 |
| 2BR | $609,200 | $1,630 | 1.9% | +11.7% | $304,600 |
| 3BR | $635,120 | $2,180 | 2.5% | +11.6% | $211,707 |
| 4BR | $1,031,815 | $2,190 | 1.5% | +11.4% | $257,954 |
| 5BR | $1,917,738 | — | — | +11.3% | $383,548 |
Market Trends
Home Value History (with trend line)
📊 How Does 08204 Compare?
| Metric | 08204 | Cape May | Ocean City, NJ | New Jersey |
|---|---|---|---|---|
| Home Value | $733,771 | $122,295 | N/A | $559,826 |
| 5-Year CAGR | 6.9% | 6.9% | N/A | 8.4% |
| Avg Rent | $1,467 | $1,467 | N/A | - |
| Cap Rate | 1.6% | 1.6% | - | - |
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 08204 (Cape May, NJ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $733,771 |
| Monthly Rent | $1,467 |
| Price-to-Rent | 41.7:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.4% |
| Cap Rate | 1.6% |
| 5-Year IRR | 8.4% |
📈 Home Appreciation
| 1-Year | +8.0% ▲ |
| 3-Year CAGR | +5.2% ▲ |
| 5-Year CAGR | +6.9% ▲ |
| 10-Year CAGR | +8.0% ▲ |
🏠 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 (1.6%). 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 08204
Population: 16,890
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 08204
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.
Frequently Asked Questions
Which investment style suits Cape May, NJ?
A careful cash-flow rentals with hands-on management strategy Cape May, NJ best. The market produces even-keeled results for that approach at the $734K price point.
Is Cape May, NJ a friendly market for rental owners?
For rental operators, Cape May, NJ rates as tenant-protective. The regulatory environment standard buy-and-hold operations.
What is the typical home price in Cape May, NJ?
Homes in Cape May, NJ typically sell near $734K. Prices have moved at a 0.0% 5-year CAGR, which predictable long-term demand.
Is Cape May, NJ a good market for FHA house hackers?
Cape May, NJ offers a challenging house-hacking opportunity. Small multifamily or rent-by-the-room plays can pair well with the $1,467/mo rent level.
How qualified is the tenant pool in Cape May, NJ?
The tenant pool in Cape May, NJ is solid, supported by local employment and population fundamentals. Rents of $1,467/mo are well-absorbed by the market.
You know 08204 now. You don’t know where it ranks.
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How 08204 ranks in Ocean City, NJ
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