Short answer: In Jersey City, NJ, the median home value is $571,700 and the median 3-bedroom rents for $2,249/mo (Census ACS 2024). That's a rent-to-price ratio of 0.39%, so it misses the 1% rule and ranks #38 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$2,321/mo cash flow).
Key numbers
The 1% rule in Jersey City
Before running a full analysis, many investors check whether rent is at least 1% of price. This is where Jersey City lands.
Across all rentals (not just 3-bedrooms) the ratio is 0.38%. A home renting for the median 3-bedroom rent would need to cost about $225,000 or less to pass.
A typical Jersey City home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $2,249 |
| Property tax ($9,126/yr, local median) | −$760 |
| Insurance ($2,860/yr, assumed) | −$238 |
| Vacancy 5% · Maintenance 5% · Management 8% | −$405 |
| Net operating income | $845 |
| Mortgage (P&I on $457,360 at 7.40%) | −$3,167 |
| Monthly cash flow | −$2,321 |
What price works in Jersey City?
Price is the lever you control. Holding rent at the Jersey City median, these are the price ceilings for each FirstDoor result.
Takeaways
- Jersey City's 0.39% ratio is a long way from the 1% rule (#38 of 50). Most investors here are betting on appreciation, not monthly income.
- A median-priced home here would cost you about $2,321/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $253,000, 56% below the median.
- Rents are outrunning prices: the median 3-bedroom rent rose 5.2% from 2023 to 2024 while values rose 2.7%. That slowly improves the math for buyers.
- The rental market is tight: only 4.5% of rentals sit vacant (US: 5.7%). Good units should lease quickly.
- Property taxes are heavy: the median bill is $9,126, about 1.60% of value versus 0.89% nationally. Confirm the bill after purchase, since it can reset.
Frequently asked questions
Does Jersey City pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $2,249/mo and the median home value is $571,700 (Census ACS 2024 1-year), a ratio of 0.39%. To pass at that rent, a home would need to cost about $225,000 or less.
What is the typical rent for a 3-bedroom in Jersey City?
The median gross rent for a 3-bedroom in Jersey City, NJ is $2,249 a month, and $2,182 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median rose 5.2% from 2023.
Can you cash flow a rental in Jersey City?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $571,700 home renting for $2,249 loses about $2,321/mo. It breaks even at roughly $253,000.
How much cash do you need to buy a typical rental in Jersey City?
About $131,540: a 20% down payment of $114,340 plus closing costs we assume at 3% ($17,200). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Jersey City a good place to buy a first rental?
FirstDoor scores a median-priced home in Jersey City as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
Compare similar markets
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($2,860/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.