Average capitalization rate in New Jersey, United States

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Capitalization rate description

A percentage that shows the potential annual return on a real estate investment based on the property's income.

The cap rate helps investors quickly assess and compare the profitability of different property investments.

\(\text{Cap Rate} = \frac{\text{Annual Rental Income} - \text{Annual Expenses}}{\text{Total Purchase Price}}\)

A higher cap rate suggests a potentially more profitable investment, though it should be considered alongside other financial metrics.

Average capitalization rate for residential properties in New Jersey

MedianMeanMode
8.7%
From 3,305,297 homes
9.0%
From 3,305,297 homes
-

Data updated November 14, 2026

Average capitalization rate for residential for cities in New Jersey

LocationMedianMeanMode
Aberdeen
9.2%
From 3,544 homes
9.3%
From 3,544 homes
-
Absecon
10.8%
From 3,982 homes
11.7%
From 3,982 homes
-
Absecon Highlands
11.5%
From 929 homes
11.3%
From 929 homes
-
Alexandria
8.5%
From 1,944 homes
8.6%
From 1,944 homes
-
Allamuchy
9.4%
From 407 homes
9.6%
From 407 homes
-
Allendale
6.2%
From 2,508 homes
6.2%
From 2,508 homes
-
Allenhurst
1.1%
From 216 homes
1.4%
From 216 homes
-
Allentown
8.8%
From 750 homes
8.7%
From 750 homes
-
Allenwood
4.9%
From 472 homes
5.0%
From 472 homes
-
Alloway
10.5%
From 1,251 homes
11.4%
From 1,251 homes
-

All cities in New Jersey