What is the cap rate in Trenton, NJ?

The median cap rate in Trenton, NJ is 4.1%. This is based on HUD Fair Market Rents and current home values.

Is Trenton a good place to buy rental property?

Trenton has a cap rate of 4.1% and estimated cash flow of -$816/month. Returns are moderate — consider the appreciation potential. Median home price is $431,331 with average 3BR rent of $2,160/month.

What is the average rent in Trenton, NJ?

The HUD Fair Market Rent for a 3-bedroom in Trenton, NJ is $2,160/month. This represents the estimated rent for standard-quality housing in the area.

Trenton, NJ — Rental Investment Analysis

🟡MODERATE— average returns

Data: HUD FMR FY2024 + Zillow ZHVI April 2026 + Freddie Mac rates. Last updated June 2026.

Investment Summary

As of 2026, rental properties in Trenton, NJ yield a 4.1% cap rate. Median home price is $431,331 with 3-bedroom rents at $2,160/month.

Trenton is a moderate market — workable but not exceptional for cash flow. At $431,331 median home price, Trenton requires significant capital. A 20% down payment alone is $86,266. With 3-bedroom rents around $2,160/month, the 4.1% cap rate tells the story. Cash flow is deeply negative at -$816/month with standard assumptions. This market requires appreciation to justify the investment.

At 0.59% on the 1% rule, rents are low relative to purchase prices. You'd need a significant discount from asking price to make the numbers work. DSCR of 0.64 is below 1.0, meaning rental income doesn't cover the mortgage. DSCR lenders will likely decline this market at current prices.

Bottom line: Consider Trenton only if you believe in long-term appreciation. The numbers don't support cash flow at today's prices and rates.

Data sources: HUD Fair Market Rents (FY2024), Zillow Home Value Index (April 2026), Freddie Mac Primary Mortgage Market Survey.

Cap Rate

4.1%

Below average

Monthly Cash Flow

-$816

After all expenses

Price-to-Rent

14.1

Investor-friendly

DSCR

0.64

Fails

Key Metrics

Median Home Price: $431,331
Average Rent (3BR): $2,160/mo
Price-to-Rent Ratio: 14.1(good)
1% Rule: 0.59%(fails — need 1%+)
Cash-on-Cash Return: -9.9%
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, 6.52% 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

29%

Affordable

Section 8 Max Rent

$2,160/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 Trenton for Investors

08611

Cap Rate: 9.1%Cash Flow: +$442/mo$197,259

08609

Cap Rate: 8.2%Cash Flow: +$312/mo$211,648

08629

Cap Rate: 6.3%Cash Flow: -$26/mo$259,413

All Zip Codes in Trenton

Zip	Cap Rate	Cash Flow	Home Price	Rent (3BR)	DSCR
08611	9.1%	+$442	$197,259	$2,160/mo	1.42
08609	8.2%	+$312	$211,648	$2,120/mo	1.28
08629	6.3%	-$26	$259,413	$2,100/mo	0.98
08618	5.7%	-$167	$270,551	$2,020/mo	0.88
08610	4.4%	-$572	$352,628	$2,200/mo	0.70
08610	4.4%	-$572	$352,628	$2,200/mo	0.70
08619	4.1%	-$816	$431,331	$2,550/mo	0.64
08690	3.5%	-$1,172	$485,382	$2,560/mo	0.55
08691	3.2%	-$1,716	$641,597	$3,180/mo	0.50
08691	3.2%	-$1,716	$641,597	$3,180/mo	0.50
08620	2.5%	-$1,520	$465,245	$1,970/mo	0.39
08620	2.5%	-$1,520	$465,245	$1,970/mo	0.39
08620	2.5%	-$1,520	$465,245	$1,970/mo	0.39