Real Estate Investing in Middletown, New York (10940)
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Should you buy in 10940 (Middletown, NY)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
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.
What’s happening in Middletown, NY (10940)?
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Market Analysis: 10940 Middletown
ZIP 10940 inside Orange County looks affordable on the surface — median value of $404K — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 10940 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
The gap between 10940 and stronger Middletown ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
Employment concentration in 10940 leans toward sectors with higher volatility. The demographic consequence is income fluctuation that investors need to factor into their pro forma.
Experienced landlords with local relationships tend to find 10940 workable. Turnkey investors from out of state usually find the numbers do not hold up in practice.
Here's what matters if you're considering buying a home in Middletown:
Property Strategy for 10940
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $206,836 | $1,600 | 5.6% | +12.1% | $206,836 |
| 2BR | $301,545 | $2,050 | 4.9% | +9.6% | $150,773 |
| 3BR | $388,321 | $2,600 | 4.8% | +9.1% | $129,440 |
| 4BR | $479,683 | $2,790 | 4.2% | +9.4% | $119,921 |
| 5BR | $471,787 | — | — | +9.3% | $94,357 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 10940 Compare?
| Metric | 10940 | Middletown | Poughkeepsie-Newburgh-Middletown, NY | New York |
|---|---|---|---|---|
| Home Value | $403,572 | $432,665 | N/A | $505,608 |
| 5-Year CAGR | 6.7% | 7.0% | N/A | 6.6% |
| Avg Rent | $2,364 | $2,294 | N/A | - |
| Cap Rate | 4.6% | 4.2% | - | - |
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 10940 (Middletown, NY). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $403,572 |
| Monthly Rent | $2,364 |
| Price-to-Rent | 14.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 7.0% |
| Cap Rate | 4.6% |
| 5-Year IRR | 11.3% |
📈 Home Appreciation
| 1-Year | +5.0% ▲ |
| 3-Year CAGR | +5.7% ▲ |
| 5-Year CAGR | +6.7% ▲ |
| 10-Year CAGR | +8.2% ▲ |
🏠 Rent Trends
| 1-Year | -0.3% ▼ |
| 3-Year CAGR | +2.8% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (4.6%). 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 10940
Population: 53,099
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 10940
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 1,348 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Does Middletown, NY favor landlords or tenants?
For rental operators, Middletown, NY rates as tenant-protective. The regulatory environment standard buy-and-hold operations.
What is the tenant pool like in Middletown, NY?
Middletown, NY draws a measured base of working renters. Demand at the $2,364/mo rent level is reasonable for standard single-family and small multi rentals.
How much should I expect to pay for a home in Middletown, NY?
Middletown, NY median home values land near $404K. That is reasonable territory for investors looking at $2,364/mo-per-month rentals.
What does house hacking look like in Middletown, NY?
House hacking in Middletown, NY is reasonable to execute. Prices around $404K and rents of $2,364/mo solid owner-occupant economics.
How should investors approach Middletown, NY?
A careful cash-flow rentals with hands-on management strategy Middletown, NY best. The market produces predictable results for that approach at the $404K price point.
You know 10940 now. You don’t know where it ranks.
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How 10940 ranks in Poughkeepsie-Newburgh-Middletown, NY
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