Newark, NJ — Rental Investment Analysis

🔴WEAK— appreciation play only

Cap Rate

2.5%

Below average

Monthly Cash Flow

-$1,527

After all expenses

Price-to-Rent

19.3

Overpriced for rent

DSCR

0.40

Fails

📊 Key Metrics

Median Home Price: $489,838
Average Rent (3BR): $2,100/mo
Price-to-Rent Ratio: 19.3(high)
1% Rule: 0.43%(fails — need 1%+)
Cash-on-Cash Return: -16.7%
Vacancy Rate: 8.0%

📈 Market Strength

Unemployment Rate: 4.8%(+0.5% vs national)
Rent Growth (YoY): +2.9%(national avg)
Population Growth: +0.4% YoY

Assumptions Used

20% down, 7.000000000000001% rate, 30yr, 8% vacancy, 10% maintenance

Customize these numbers →

Property Tax Rate

2.23%

of assessed value (NJ avg)

Median Income

$89,296

household (NJ avg)

Rent-to-Income

28.2%

Affordable

Section 8 Max Rent

$2,100/mo

3BR voucher payment

🏛️ NJ Investor Climate

Landlord Friendly

4/10

State Income Tax

Has state tax

Property Tax

2.23% effective

Population Trend

+0.4% (3yr)

🏘️ Best Zip Codes in Newark for Investors

07102

Cap Rate: 3.4%Cash Flow: -$1,009/mo$405,287

07103

Cap Rate: 3.3%Cash Flow: -$1,045/mo$399,610

07114

Cap Rate: 2.8%Cash Flow: -$1,389/mo$467,687

All Zip Codes in Newark

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
07102	3.4%	-$1,009	$405,287	$2,100/mo	0.53
07103	3.3%	-$1,045	$399,610	$2,010/mo	0.51
07114	2.8%	-$1,389	$467,687	$2,150/mo	0.44
07108	2.7%	-$1,527	$495,469	$2,210/mo	0.42
07112	2.5%	-$1,571	$489,838	$2,110/mo	0.40
07106	2.5%	-$1,525	$464,818	$1,960/mo	0.38
07104	2.4%	-$1,676	$504,197	$2,100/mo	0.38
07107	2.2%	-$1,805	$512,442	$2,010/mo	0.34
07105	1.9%	-$2,112	$567,741	$2,090/mo	0.30