Paterson, NJ Rental Market
Paterson — historically known as "Silk City" for its 19th-century textile manufacturing heritage — is one of New Jersey's most diverse cities and an increasingly recognized destination for affordable urban living in the NYC metro. A large and vibrant immigrant community, a growing arts scene centered on the Great Falls National Historical Park area, and NJ Transit bus and train connections to Manhattan make Paterson an accessible and affordable option for tenants priced out of Jersey City and Newark. The market offers some of the strongest gross yields in northern New Jersey.
Get a rent estimate for an address in PatersonAverage Rent in Paterson, NJ
$1,650
per month · 2026-06
Market Score
Key Facts — Paterson, NJ Rental Market
- Average rent in Paterson, NJ:$1,650/mo
- Median rent:$1,518/mo
- Rent range:$825 – $3,650/mo
- Most common rental (2 bedrooms):$1,450/mo
- Active listings:480
- Avg days to lease:30 days
- Year-over-year change:+3.5%
- Median home value:$320,000
- Est. gross annual yield:6.2%
- Data as of:2026-06
Rent by Bedroom in Paterson, NJ
Average monthly rent for each bedroom type based on current active listings in Paterson.
| Bedroom Type | Avg Rent/mo |
|---|---|
1 Bedroom | $1,200/mo |
2 Bedrooms | $1,450/mo |
3 Bedrooms | $1,850/mo |
4 Bedrooms | $2,275/mo |
5 Bedrooms | $2,600/mo |
Paterson Rental Market Statistics
Key indicators from the current Paterson, NJ rental market.
480
Available now in Paterson
30
From list to lease
$1.22
Average across listings
1,350 sq ft
Typical rental size
$825 – $3,650
Min to max active listings
+3.5%
Avg rent vs. prior year
Investing in Paterson, NJ Rental Properties
Estimated returns based on current market rents and median home values. Perform full due diligence before investing.
Median Home Value
$320,000
Typical purchase price in Paterson
Est. Gross Annual Yield
6.2%
Before expenses & vacancy
Avg Monthly Income
$1,650
At average market rent
Gross yield = (avg rent × 12) ÷ median home value. Does not include expenses, financing, vacancies, or management fees. Analyze a specific property in Paterson for a full cash-flow breakdown including all costs.
Paterson, NJ Rental Market FAQ
Common questions about renting and investing in Paterson, NJ.
What is the average rent in Paterson, NJ?
The average rent in Paterson, NJ is $1,650 per month as of 2026. One-bedroom apartments average $1,200/mo, two-bedrooms $1,450/mo, and three-bedroom homes $1,850/mo. Paterson offers meaningfully lower rents than Jersey City and Newark while still providing NJ Transit access to Manhattan and proximity to major northern NJ employers.
Is Paterson, NJ a good place to invest in rental property?
Paterson offers an estimated 6.2% gross annual yield — among the higher yields in the competitive northern NJ market. The city's large renter population, consistent demand from immigrant communities, and proximity to major employment centers in Bergen and Passaic counties provide a stable tenant base. Investors should focus on well-maintained multi-family properties in established residential neighborhoods.
What drives rental demand in Paterson, NJ?
Paterson's rental demand is driven by its large and diverse immigrant community — one of the most concentrated in New Jersey — combined with demand from workers commuting to employers in Bergen County and Manhattan. The city's proximity to major highways (I-80, Route 20) and NJ Transit service, combined with rents well below other northern NJ cities, makes it a practical choice for tenants seeking value in the NYC commuter belt.
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