New Jersey Rental Portfolio Guide
What you need to know before building or growing a rental portfolio in New Jersey — property tax burden, state income tax, security-deposit rule, source-of-income law, and the metros that actually cash-flow after accounting for local taxes.
Tax burden on New Jersey rentals
Property tax
2.23%
effective rate on median home value
At 2.23% effective, this is one of the highest property tax burdens in the country (rank 51 of 51). Every underwrite needs to account for the full carrying cost — even a strong rent-to-price ratio can go negative once property tax is properly modeled.
State income tax
10.75%
top marginal rate
A top marginal rate of 10.75% is high nationally. Rental portfolio income at scale takes a significant state hit on top of federal, so serious operators lean hard on depreciation, cost segregation and 1031 deferral. Long-term hold economics reward staying under the top bracket where possible.
Security deposit rule
State law caps security deposits at 1.5 months' rent. Charging above the cap exposes the landlord to statutory damages in most states, so build lease templates that respect this ceiling from day one.
Deposit rules change; verify current statute before drafting a lease.
Best cash-flow markets in New Jersey
Modeled monthly cash flow on a median-priced single-family purchase at 20% down, 30-year fixed, using New Jersey’s 2.23% effective property tax rate plus 25% of rent for insurance, maintenance, vacancy and management.
| Market | Median price | Median rent | Annual property tax | CF / month |
|---|---|---|---|---|
| Vineland, NJ | $278,723 | $1,604 | $6,216 | $-776 |
| Atlantic City, NJ | $384,211 | $2,151 | $8,568 | $-1,115 |
| Trenton, NJ | $446,377 | $2,623 | $9,954 | $-1,202 |
| Ocean City, NJ | $802,506 | $2,254 | $17,896 | $-4,007 |
State median across these metros: $415,294 home, $2,203 rent, $-1,158/mo modeled cash flow.
Track your New Jersey rental portfolio
The Pro Portfolio Tracker rolls up every property in your portfolio, auto-revalues them monthly against local price data, and flags DSCR risk and equity milestones. Each New Jersey property carries the state-specific tax burden shown above through to the cash flow calculation.
Property tax rate: Tax Foundation. Security deposit rule: state statute. Verify current law before making decisions — statutes change and this page is a planning reference, not legal or tax advice.