Is Cape May County, NJ good for real estate investing?

Cape May County has an investment score of 43/100, rated as "Avoid". The county ranks #719 nationally among 1000 counties analyzed.

What is the rent-to-price ratio in Cape May?

The rent-to-price ratio in Cape May County is 3.25% annually, which ranks in the 1th percentile nationally. Higher ratios indicate better cash flow potential.

What is the median home price in Cape May?

The median home price in Cape May County is $804,637. This ranks #984 in affordability among all US counties.

Can you cash flow on rental properties in Cape May?

Based on median values with 20% down at current rates, a typical rental in Cape May County would generate negative cash flow of $2,802/month. Individual property performance varies based on purchase price, rent, and operating expenses.

Cape May County

New JerseyPopulation: 95,456

/100

Avoid

#719 of 1,000 counties

#20 in New Jersey (21 counties)

Analysis by RentalCalcs ResearchIndependent data + algorithm-driven scoring

Updated July 20, 2026Sources: Zillow ZHVI, Zillow ZORI, US Census ACS, Tax Foundation

Market Snapshot

$804,637

Median Home Price

251% above national median

$2,179/mo

Median Rent

50% above national median

3.25%

Rent-to-Price Ratio

Top 99% nationally

-$2,802

Est. Monthly Cash Flow

With 20% down at 6.9% rate

Scenario comparison

Same $2,179/mo rent assumption, 20% down, 6.85% rate. What changes is the acquisition price.

Scenario	Purchase price	Monthly cash flow	Cap rate	Cash-on-cash
75% of median value-add or distressed	$603,478	-$1,747/mo	2.8%	-15.1%
Median typical MLS deal	$804,637	-$2,802/mo	2.1%	-18.2%
125% of median newer / premium	$1,005,796	-$3,856/mo	1.7%	-20.0%

Price History

Median Home Price

Median Rent

Historical data from Zillow ZHVI/ZORI

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$804,637

Down Payment (20%)$160,927

Loan Amount$643,710

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$2,179

Monthly P&I-$4,218

Est. Expenses (35%)-$763

Net Cash Flow-$2,802/mo

2.1%

Cap Rate (all cash)

-18.2%

Cash-on-Cash Return

3.25%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 2.1% 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

43/100

Cash Flow(30%)

19/100

Based on 3.25% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

95/100

Based on 8.0% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

7/100

Based on price relative to estimated local incomes.

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

+Strong price appreciation (+8.0% YoY)
+Complete rent data available

Challenges

-Below-average rent-to-price ratio (3.25%)
-Negative cash flow at typical financing (-$2,802/mo)
-Negative leverage (cap rate 2.1% < mortgage rate 6.9%)
-High price-to-income ratio makes financing challenging

Economic Indicators

Population

95,456

Median Income

—

Data pending

Unemployment Rate

—

Data pending

Price-to-Income

—

Data pending

Who this market fits

Best for

+Appreciation buyers: YoY growth is meaningfully above the long-run average
+Patient holders willing to accept negative carry for equity gains
+All-cash buyers: removing debt service flips the cap rate to actual yield

Skip if

−You need positive cash flow on day one at typical leverage
−You can't tolerate negative leverage (cap rate below mortgage rate today)
−You rely on FHA-style financing: prices are stretched relative to local incomes
−You want a market with broad institutional consensus on fundamentals

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
EssexNJ	47	$635,686	$2,305	4.35%	Hold	View
CurrentCape MayNJ	43	$804,637	$2,179	3.25%	Avoid

The Bottom Line

AvoidCape May may be challenging for traditional rentals. High prices or low rents make cash flow difficult.

Cape May County in New Jersey scores 43/100, ranking #719 of 1,000 US counties (top 92%). At 20% down and current rates, a median-priced rental loses about $2802/month; the 3.25% gross rent-to-price ratio doesn't survive debt service. The thesis here is appreciation, value-add, house hacking, or all-cash.

Monthly Cash Flow

$-2,802/mo

Cap Rate

2.1%

Cash-on-Cash

-18.2%

Related markets

Markets like Cape May with stronger cash flow

Cheaper alternatives to Cape May

Head-to-head comparisons

All counties in New Jersey →

Rent vs buy in New Jersey cities

Rent vs buy in Newark, NJMedian $635,686 · rent $2,305/mo Rent vs buy in Jersey City, NJMedian $617,352 · rent $2,912/mo Rent vs buy in Paterson, NJMedian $574,942 · rent $2,282/mo Rent vs buy in Elizabeth, NJMedian $614,241 · rent $2,590/mo Rent vs buy in Lakewood, NJMedian $527,692 · rent $2,735/mo All New Jersey citiesFull rent-vs-buy directory for the state

Ready to Analyze a Deal in Cape May?

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

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

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Scenario comparison

Same $2,179/mo rent assumption, 20% down, 6.85% rate. What changes is the acquisition price.

Scenario	Purchase price	Monthly cash flow	Cap rate	Cash-on-cash
75% of median value-add or distressed	$603,478	-$1,747/mo	2.8%	-15.1%
Median typical MLS deal	$804,637	-$2,802/mo	2.1%	-18.2%
125% of median newer / premium	$1,005,796	-$3,856/mo	1.7%	-20.0%

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$804,637

Down Payment (20%)$160,927

Loan Amount$643,710

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$2,179

Monthly P&I-$4,218

Est. Expenses (35%)-$763

Net Cash Flow-$2,802/mo

2.1%

Cap Rate (all cash)

-18.2%

Cash-on-Cash Return

3.25%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 2.1% 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

43/100

Cash Flow(30%)

19/100

Based on 3.25% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

95/100

Based on 8.0% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

7/100

Based on price relative to estimated local incomes.

Who this market fits

Best for

+Appreciation buyers: YoY growth is meaningfully above the long-run average
+Patient holders willing to accept negative carry for equity gains
+All-cash buyers: removing debt service flips the cap rate to actual yield

Skip if

−You need positive cash flow on day one at typical leverage
−You can't tolerate negative leverage (cap rate below mortgage rate today)
−You rely on FHA-style financing: prices are stretched relative to local incomes
−You want a market with broad institutional consensus on fundamentals

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

EssexNJ

$635,686

$2,305

4.35%

Hold

View

CurrentCape MayNJ

$804,637

$2,179

3.25%

Avoid

The Bottom Line

AvoidCape May may be challenging for traditional rentals. High prices or low rents make cash flow difficult.

Monthly Cash Flow

$-2,802/mo

Cap Rate

2.1%

Cash-on-Cash

-18.2%