Is Somerset County, NJ good for real estate investing?

Somerset County has an investment score of 46/100, rated as "Hold". The county ranks #667 nationally among 1000 counties analyzed.

What is the rent-to-price ratio in Somerset?

The rent-to-price ratio in Somerset County is 4.88% annually, which ranks in the 21th percentile nationally. Higher ratios indicate better cash flow potential.

What is the median home price in Somerset?

The median home price in Somerset County is $672,427. This ranks #972 in affordability among all US counties.

Can you cash flow on rental properties in Somerset?

Based on median values with 20% down at current rates, a typical rental in Somerset County would generate negative cash flow of $1,748/month. Individual property performance varies based on purchase price, rent, and operating expenses.

Somerset County

New JerseyPopulation: 344,978

/100

Hold

#667 of 1,000 counties

#20 in New Jersey (21 counties)

Analysis by RentalCalcs ResearchIndependent data + algorithm-driven scoring

Updated August 31, 2026Sources: Zillow ZHVI, Zillow ZORI, US Census ACS, Tax Foundation

Market Snapshot

$672,427

Median Home Price

193% above national median

$2,734/mo

Median Rent

89% above national median

4.88%

Rent-to-Price Ratio

Top 79% nationally

-$1,748

Est. Monthly Cash Flow

With 20% down at 6.9% rate

Scenario comparison

Same $2,734/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	$504,320	-$867/mo	4.2%	-9.0%
Median typical MLS deal	$672,427	-$1,748/mo	3.2%	-13.6%
125% of median newer / premium	$840,534	-$2,630/mo	2.5%	-16.3%

Price History

Median Home Price

Median Rent

Historical data from Zillow ZHVI/ZORI

Quick Investment Calculator

Down Payment20%

5%50%100%

Purchase

Purchase Price$672,427

Down Payment (20%)$134,485

Loan Amount$537,942

Interest Rate6.85%

Monthly Cash Flow

Gross Rent+$2,734

Monthly P&I-$3,525

Est. Expenses (35%)-$957

Net Cash Flow-$1,748/mo

3.2%

Cap Rate (all cash)

-13.6%

Cash-on-Cash Return

4.88%

Rent-to-Price Ratio

Negative leverage: At 6.85% rates, borrowing costs exceed the 3.2% 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

46/100

Cash Flow(30%)

43/100

Based on 4.88% rent-to-price ratio. Higher ratios indicate stronger cash flow potential.

Appreciation(25%)

71/100

Based on 2.1% YoY price growth. Moderate growth (3-8%) scores highest.

Stability(25%)

50/100

Population data not available.

Affordability(20%)

12/100

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

+Complete rent data available

Challenges

-Below-average rent-to-price ratio (4.88%)
-Negative cash flow at typical financing (-$1,748/mo)
-Negative leverage (cap rate 3.2% < mortgage rate 6.9%)
-High price-to-income ratio makes financing challenging

Economic Indicators

Population

344,978

Median Income

—

Data pending

Unemployment Rate

—

Data pending

Price-to-Income

—

Data pending

Who this market fits

Best for

+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

Compare to Nearby Counties

County					Verdict
UnionNJ	51	$614,241	$2,590	5.06%	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
CurrentSomersetNJ	46	$672,427	$2,734	4.88%	Hold
Cape MayNJ	41	$754,410	$2,100	3.34%	Avoid	View

The Bottom Line

HoldSomerset is a neutral market. Consider house hacking or targeting below-market deals.

Somerset County in New Jersey scores 46/100, ranking #667 of 1,000 US counties (top 85%). At 20% down and current rates, a median-priced rental loses about $1748/month; the 4.88% 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

$-1,748/mo

Cap Rate

3.2%

Cash-on-Cash

-13.6%