What are the difference in rent rates in New Jersey vs PA

Question

Hey guys,

I'm located in NJ and I'm looking into PA as an alternative to invest in due to the extreme taxes in my area, I figure it would benefit me more to invest in a not so tax dominate state.

I am wondering what would be the average rent that can be set for a multi-family property located in PA vs NJ, I'm assuming that the closer you are to PAs major cities it would yield a better rents?

Also, does anyone currently live in NJ and own investments in PA or other states?

I would really like to get your input on this and how it is working for you.

Thank you !

Jean Lee · Answer

I’m a local realtor for the Poconos as well. East Stroudsburg, PA made the list for top 20 cities nationally for ROI on rentals. This is a college town with hospitals, close to route 80 where many commuters commute to NY and NJ. we can see 3 bedroom units near the college being rented for 1.3k a month, with decent taxes. These duplexes are running between 130k-180k, which is not bad at all.

Michael Knaus · Answer

I agree it really does depend on where in PA. There are some areas of central/northeast PA that were former coal mining communities that are loaded with cheap houses compared to market rent. This tends to attract out of state buyers thinking it's too good to be true. I would stay away from these areas. The trouble is, most people are trying to leave these towns. The ones that stay have tons of rent options because there are so many available. Stick to medium sized communities with great demographics. Look for towns with great employers, a college and hospitals. Then scoop up 2-4 unit properties in these areas.

Joseph Scorese · Answer

Hi @Cody Jensen

Welcome to BP!

I am from Central/North Jersey like yourself and understand the debate. You are up against a few things when up in your area and in a great area to consider other markets as well. Your buy in is much higher and taxes of course are higher in comparison of the Greater Philadelphia Market or even Delaware. All the benefits to build a team in both markets offer a Landlord Association which is more direct to assist you comparing to a REIA which is real estate broadened education. Wilmington has a Landlord Association and Philadelphia has HAPCO. Where New Jersey has no concentrated Landlord Association by Area.

Let me know if you have any questions.

Regards

Joe Scorese

Account Closed · Answer

Hi Cody, go to Rentometer.com and put in some addresses. Rents vary so much by state, city, neighborhood etc that you really have to look street by street to answer your question.

Patrick Liska · Answer

Cody,

I agree with Account Closed on that, you can not compare, it can vary depending on where you live in the state. I have property in central PA, and what you can get in rent is relative to where you are, just like in NJ. Pick an area of PA that you would like to invest in and get to know the area and what you can get for rent vs. how much the property costs and what your expenses will be. keep in mind that in most of PA that taxes do not cover everything, like in NJ, and they are split up. you will have county tax, school tax, you may have one or two more to pay depending on where you are ( all paid separate) you will have to pay for garbage separate.

Brian Adzadi · Answer

@Cody Jensen

As our collegues are saying. It purely depends what part of pennsylvania you are looking at. Some areas see a population growth while others see a loss. I have chosen to live and invest in the Lehigh valley area. Mainly Allentown. Houses are cheaper, property taxes are cheaper and it's less tenant friendly than N.Y. or NJ. Lehigh valley has seen some growth. Both in population and job market. The downtown Allentown area is seeing new businesses transfer or set up there. There are multiple universities and colleges in lehigh valley. Depending on what kind of rentals you want to go into, either MF or SF. Either way you will get a good ROI. Lehigh valley would be good for you because its only about an  1 hour 30 minutes from you.

Kelley Gabany · Answer

I'm a Realtor/Investor in the Pocono's and Lehigh Valley.  I have a lot of investors/ buyers and renters commuting from NJ and NY because PA is so much cheaper in both rent/investing or even primary residence buying.  Depends on the area in PA but Lehigh Valley and some locations in the Pocono's are great spots to invest in.

Alex Malyarovich · Answer

Hey @Cody Jensen, I'm in the same boat as you and am looking around the East Stroudsburg area.  It's close enough for me to take a drive out to and check it out.  I don't want to invest in my first property that I can't get to in less than 2 hours of driving. Gotta run the numbers and see if they make sense for you.

What are the difference in rent rates in New Jersey vs PA

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