Rent or buy in Newark? Renting is $1,769 a month cheaper.
Renting the typical home in Newark costs $1,769 less a month than owning it. Even counting equity and price growth, buying does not come out ahead of renting and investing the difference within 30 years under our baseline assumptions.
Updated September 26, 2026 · Zillow data for August 2026 · 7.03% mortgage rate (Freddie Mac, September 24, 2026) · Rank 225 of 340 (1 = owning closest to renting) · Part of our 2026 rent vs. buy study
Monthly cost to own$3,883typical home, 20% down
Typical monthly rent$2,114Zillow, August 2026
Buying breaks even30+ years3.5% price growth
Cash needed to buy$110,826$481,850 home · 20% down + 3% closing
Income needed to own$155,339vs. $84,560 to rent · 30% rule
Where the monthly money goes.
The first-month cost of owning the typical Newark home, split into its parts, against the typical rent. About $314 of the first mortgage payment is principal, which you keep as equity.
The median household income in Newark is $52,060 (Census ACS 2020–2024). Owning the typical home would take 90% of it; renting would take 49%.
As a check with a larger rental, HUD's FY2027 Fair Market Rent for a three-bedroom home in the Newark, NJ HUD Metro FMR Area area is $2,785 a month, still $1,098 below the cost of owning.
Own
$3,883
Rent
$2,114
Mortgage principal & interest $2,572
Property tax $780
Home insurance $129
Maintenance $402
How long you would need to stay.
Net worth of a buyer compared with a renter who invests the down payment, closing costs and any monthly savings at 6% a year. Home values and rents grow 3.5% a year; selling costs 6%.
Price is the Zillow Home Value Index and rent the Zillow Observed Rent Index for Newark. The cost of owning includes principal and interest at 7.03% with 20% down, property tax at the city's 1.94% effective rate (Census ACS), the New Jersey average homeowners premium (NAIC 2023) and 1% yearly maintenance. It leaves out income-tax effects, HOA dues and utilities. The typical rental may be smaller than the typical home for sale. Full methodology. This is a citywide estimate, not advice about a specific home.