Rent or buy in Paterson? Renting is $2,854 a month cheaper.
Renting the typical home in Paterson costs $2,854 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 November 12, 2026 · Zillow data for September 2026 · 7.11% mortgage rate (Freddie Mac, November 12, 2026) · Rank 316 of 339 (1 = owning closest to renting) · Part of our 2026 rent vs. buy study
Monthly cost to own$4,743typical home, 20% down
Typical monthly rent$1,889Zillow, September 2026
Buying breaks even30+ years3.5% price growth
Cash needed to buy$124,412$540,919 home · 20% down + 3% closing
Income needed to own$189,718vs. $75,560 to rent · 30% rule
Where the monthly money goes.
The first-month cost of owning the typical Paterson home, split into its parts, against the typical rent. About $347 of the first mortgage payment is principal, which you keep as equity.
The median household income in Paterson is $55,997 (Census ACS 2020–2024). Owning the typical home would take 102% of it; renting would take 40%.
As a check with a larger rental, HUD's FY2027 Fair Market Rent for a three-bedroom home in the Bergen-Passaic, NJ HUD Metro FMR Area area is $2,771 a month, still $1,972 below the cost of owning.
Own
$4,743
Rent
$1,889
Mortgage principal & interest $2,911
Property tax $1,252
Home insurance $129
Maintenance $451
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 Paterson. The cost of owning includes principal and interest at 7.11% with 20% down, property tax at the city's 2.78% 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.