How accurate are "Zestimates" on Zillow?

[Parth Patel]

Hey everyone,

I'm currently educating myself about Rental properties before I go and purchase one myself. I'm practicing doing rental analysis, but some of the homes on Zillow are priced REALLY low yet look like they're in decent condition. I was wondering how accurate some of the home estimates are.

For example, the home i'm currently looking at is $100,000 yet the Zestimate is showing $283,145. (New Jersey). Homes around the area are prices between 230k-400k. 

3 Bed 2 Bath 

Rent Zestimate is $2,000 per month. 

Would really appreciate some insight on this. 

Thanks.