Trenton is home to the best residential real estate investment market in New Jersey.
The 08609 zip code in Trenton presents the greatest opportunity for the best real estate investments among the 2,884 individual real estate markets in New Jersey we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.
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Data sources
Most of the data in this article comes from the Zillow Home Value Index and the U.S. Census American Community Survey.
We update our data when the original sources update their data, usually monthly. Sometimes we'll update data more frequently.
Clever also performs regular quality checks to identify outdated data, broken data connections, and other data issues that may arise.
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5 best places to invest in New Jersey
| Rank | City | InvestScore | Affordability | Property value appreciation |
|---|---|---|---|---|
| 1 | Trenton | 100 | 3.1 | 91% |
| 2 | Camden | 96.4 | 3.3 | 96% |
| 3 | West Deptford Township | 95.5 | 3.5 | 72% |
| 4 | Wenonah | 95.2 | 3.1 | 58% |
| 5 | Vernon | 94.5 | 3.2 | 55% |
🚨 This article is for informational purposes only. It isn't intended to convey financial or legal advice. We recommend you talk to a real estate agent or real estate attorney when buying a home in New Jersey.
1. Trenton
We've identified the 08609 zip code in Trenton as New Jersey's best real estate investment market. Here's why.
🔎 Key data about Trenton (08609)
| Data point | Value | Rank in state (of 2,884 markets) |
|---|---|---|
| InvestScore | 100 | Highest |
| Typical property value | $208,843[1] | 6th lowest |
| Five-year appreciation | 91%[2] | 3rd highest |
| Household income | $68,238[3] | 374th highest |
| Affordability ratio | 3.1 | 6th most affordable |
| Five-year population growth | 23%[4] | highest |
| Unemployment rate | 4.5%[5] | 3rd lowest |
| Property taxes | $2,715[6] | 5th lowest |
| Educational attainment | 8.2%[7] | 320th highest |
Trenton (zip code 08609) is the best residential real estate investment market in New Jersey. It has the 3rd highest property value appreciation among markets we evaluated, with a 91% appreciation of the typical property over the last five years.
Trenton is the 6th most affordable market among the 2,884 New Jersey markets we evaluated, with an affordability ratio of 3.1.
2. Camden
The 08104 zip code in Camden is the runner-up spot for the best real estate investments in New Jersey.
🔎 Key data about Camden (08104)
| Data point | Value | Rank in state (of 2,884 markets) |
|---|---|---|
| InvestScore | 96.4 | 2nd highest |
| Typical property value | $126,365[1] | 2nd lowest |
| Five-year appreciation | 96%[2] | highest |
| Household income | $38,170[3] | 414th highest |
| Affordability ratio | 3.3 | 17th most affordable |
| Five-year population growth | 3%[4] | 46th highest |
| Unemployment rate | 4%[5] | 2nd lowest |
| Property taxes | $2,159[6] | 2nd lowest |
| Educational attainment | 9.5%[7] | 316th highest |
The 08104 zip code in Camden features a typical property value of $126,365, the 2nd lowest in the state.
Property values have appreciated 96% over the past five years, the highest increase among evaluated markets in the state. Camden homes have an affordability ratio of 3.3, the 17th most affordable in the state.
3. West Deptford Township
The 08066 zip code in West Deptford Township comes in at No. 3 in our ranking of the best residential real estate investment markets in New Jersey.
🔎 Key data about West Deptford Township (08066)
| Data point | Value | Rank in state (of 2,884 markets) |
|---|---|---|
| InvestScore | 95.5 | 3rd highest |
| Typical property value | $230,895[1] | 9th lowest |
| Five-year appreciation | 72%[2] | 7th highest |
| Household income | $65,070[3] | 382nd highest |
| Affordability ratio | 3.5 | 44th most affordable |
| Five-year population growth | 4.7%[4] | 23rd highest |
| Unemployment rate | 4%[5] | 2nd lowest |
| Property taxes | $5,823[6] | 26th lowest |
| Educational attainment | 22%[7] | 283rd highest |
With a typical property value of $230,895, West Deptford Township's 08066 zip code features the 9th lowest property values in the state.
West Deptford Township homes have an affordability ratio of 3.5, the 44th most affordable among the markets we evaluated.
4. Wenonah
The 08090 zip code in Wenonah ranks No. 4 among New Jersey's residential real estate investment markets.
🔎 Key data about Wenonah (08090)
| Data point | Value | Rank in state (of 2,884 markets) |
|---|---|---|
| InvestScore | 95.2 | 4th highest |
| Typical property value | $353,391[1] | 60th lowest |
| Five-year appreciation | 58%[2] | 56th highest |
| Household income | $115,701[3] | 56th highest |
| Affordability ratio | 3.1 | 4th most affordable |
| Five-year population growth | 2.5%[4] | 57th highest |
| Unemployment rate | 4%[5] | 2nd lowest |
| Property taxes | $7,010[6] | 73rd lowest |
| Educational attainment | 33%[7] | 229th highest |
Property values in Wenonah's 08090 zip code have seen the 56th highest increase among evaluated markets in the state, with an appreciation of 58% over the past five years.
Wenonah's affordability ratio of 3.1 makes it the 4th most affordable among the 2,884 markets we evaluated.
5. Vernon
The 07462 zip code in Vernon rounds out our top five residential real estate investment markets in New Jersey.
🔎 Key data about Vernon (07462)
| Data point | Value | Rank in state (of 2,884 markets) |
|---|---|---|
| InvestScore | 94.5 | 5th highest |
| Typical property value | $303,554[1] | 24th lowest |
| Five-year appreciation | 55%[2] | 78th highest |
| Household income | $95,945[3] | 78th highest |
| Affordability ratio | 3.2 | 9th most affordable |
| Five-year population growth | 4.4%[4] | 25th highest |
| Unemployment rate | 4.5%[5] | 3rd lowest |
| Property taxes | $6,413[6] | 43rd lowest |
| Educational attainment | 33%[7] | 229th highest |
Property values in Vernon's 07462 zip code rose 55% over the last five years, ranking the city 78th highest among evaluated markets in New Jersey.
Vernon homes have an affordability ratio of 3.2, the 9th most affordable among the markets we evaluated.
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Frequently asked questions
See our article Steps to Buying Your First Rental Property to learn the basics of real estate investing for beginners.
You'll learn the importance of setting goals, picking the right market, and more.
Cash investors often use what's called the 70% rule, which suggests they should pay around 70% of a house's after-repair value minus the cost of renovations.
By buying for about 70% of the after-repair value, they're positioning themselves to pay for repairs and other costs, and to lock in a profit.
The 70% rule isn’t a hard-and-fast formula, but a quick guideline investors use to evaluate potential deals.
Investing in residential real estate can be one of the best passive real estate investments in New Jersey.
Residential real estate offers accessible passive income and the potential to compound your original investment.
Renting out residential units is the top way to invest in real estate. House hacking also offers a great opportunity for passive real estate investment income.
How we rank residential real estate markets in New Jersey
To determine the best real estate investments in New Jersey we evaluated 2,884 markets on eight metrics, and then assigned an InvestScore based on a proprietary weighting framework. Each market corresponds to a specific zip code in New Jersey.
What is InvestScore?
InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.
- Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase.
- Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results.
- Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing.
- Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand.
- Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip.
- Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes.
- Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates.
- Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates local residents who have higher earning potential and thus should be able to afford homes.
