Is Essex County, NJ good for real estate investing?

Essex County has an investment score of 46/100, rated as "Hold". The county ranks #623 nationally among 1000 counties analyzed.

What is the rent-to-price ratio in Essex?

The rent-to-price ratio in Essex County is 4.14% annually, which ranks in the 9th percentile nationally. Higher ratios indicate better cash flow potential.

What is the median home price in Essex?

The median home price in Essex County is $643,745. This ranks #958 in affordability among all US counties.

Can you cash flow on rental properties in Essex?

Based on median values with 20% down at current rates, a typical rental in Essex County would generate negative cash flow of $1,933/month. Individual property performance varies based on purchase price, rent, and operating expenses.

Essex County

New JerseyPopulation: 853,374New York, NY Metro

/100

Hold

#623 of 1,000 counties

#20 in New Jersey (21 counties)

Market Snapshot

$643,745

Median Home Price

176% above national median

$2,219/mo

Median Rent

47% above national median

4.14%

Rent-to-Price Ratio

Top 91% nationally

-$1,933

Est. Monthly Cash Flow

With 20% down at 6.9% rate

Price History

Historical data from Zillow ZHVI/ZORI

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$643,745

Down Payment (20%)$128,749

Loan Amount$514,996

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$2,219

Monthly P&I-$3,375

Est. Expenses (35%)-$777

Net Cash Flow-$1,933/mo

2.7%

Cap Rate (all cash)

-15.7%

Cash-on-Cash Return

4.14%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 2.7% cap rate. All-cash buyers may see better returns.

* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.

Run Full Analysis Try House Hack Strategy

Score Breakdown

Overall Investment Score

46/100

Cash Flow(30%)

32/100

Based on 4.14% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

82/100

Based on 3.7% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

16/100

Price-to-income ratio of 8.7x. Lower ratios indicate more affordable markets.

Scores are calculated using real Zillow home value and rent data, Census population data, and economic indicators. The weighted average produces the overall investment score. Markets with missing rent data use estimated values based on regional averages.

Investment Outlook

Strengths

+Complete rent data available

Challenges

-Below-average rent-to-price ratio (4.14%)
-Negative cash flow at typical financing (-$1,933/mo)
-Negative leverage (cap rate 2.7% < mortgage rate 6.9%)
-High price-to-income ratio makes financing challenging

Economic Indicators

Population

853,374

Median Income

$73,785

vs $57,018 national est.

Unemployment Rate

—

Data pending

Price-to-Income

8.7x

Less affordable

Compare to Nearby Counties

County					Verdict
UnionNJ	51	$614,241	$2,590	5.06%	Hold	View
PassaicNJ	51	$574,942	$2,282	4.76%	Hold	View
MonmouthNJ	50	$733,160	$2,833	4.64%	Hold	View
HudsonNJ	48	$617,352	$2,912	5.66%	Hold	View
CurrentEssexNJ	46	$643,745	$2,219	4.14%	Hold
Cape MayNJ	41	$754,410	$2,100	3.34%	Avoid	View

The Bottom Line

HoldEssex is a neutral market. Consider house hacking or targeting below-market deals.

Essex County in New Jersey scores 46/100, ranking #623 of 1,000 US counties (top 82%). The 4.14% rent-to-price ratio may require creative strategies or below-market purchases for positive cash flow. Current market conditions make traditional buy-and-hold investing challenging. Consider house hacking, value-add strategies, or all-cash purchases.

Monthly Cash Flow

$-1,933/mo

Cap Rate

2.7%

Cash-on-Cash

-15.7%

Ready to Analyze a Deal in Essex?

Use our investment calculators to run detailed numbers on specific properties.

Single Family1-4 unit rentals, BRRRR House HackOwner-occupied strategy Multifamily5+ unit properties

Explore Other Markets

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$643,745

Down Payment (20%)$128,749

Loan Amount$514,996

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$2,219

Monthly P&I-$3,375

Est. Expenses (35%)-$777

Net Cash Flow-$1,933/mo

2.7%

Cap Rate (all cash)

-15.7%

Cash-on-Cash Return

4.14%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 2.7% cap rate. All-cash buyers may see better returns.

* Based on county median values. 35% expenses include taxes, insurance, maintenance, vacancy, and property management. Actual results vary by property.

Run Full Analysis Try House Hack Strategy

Score Breakdown

Overall Investment Score

46/100

Cash Flow(30%)

32/100

Based on 4.14% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

82/100

Based on 3.7% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

16/100

Price-to-income ratio of 8.7x. Lower ratios indicate more affordable markets.

County

Verdict

UnionNJ

$614,241

$2,590

5.06%

Hold

View

PassaicNJ

$574,942

$2,282

4.76%

Hold

View

MonmouthNJ

$733,160

$2,833

4.64%

Hold

View

HudsonNJ

$617,352

$2,912

5.66%

Hold

View

CurrentEssexNJ

$643,745

$2,219

4.14%

Hold

Cape MayNJ

$754,410

$2,100

3.34%

Avoid

View

The Bottom Line

HoldEssex is a neutral market. Consider house hacking or targeting below-market deals.

Monthly Cash Flow

$-1,933/mo

Cap Rate

2.7%

Cash-on-Cash

-15.7%