Invest In Apartment Buildings In Passaic, NJ

Who Rents In Passaic

About 76.2% of households in Passaic, NJ rent their home. That's 16,123 renter households, according to the Census Bureau's ACS 2020–2024 estimates. The renter count grew 4.6% from the 2015–2019 survey, faster than the population's 0% gain. That means part of the new demand came from people who already lived here and chose to rent.

The typical Passaic household earns $55,371 a year, 35.5% more than in the 2015–2019 survey. The number of employed residents rose 1.7% over the same period, and unemployment stood at 12.5%. Income growth of 35.5% has outrun rent growth of 23.8%, so rents here are more affordable relative to earnings than they were.

In a renter-majority market like Passaic, apartments house people across most ages and income levels. That broad tenant base is one reason we follow it.

Rents, Vacancy And Supply In Passaic

Median gross rent in Passaic, NJ is $1,465 a month, up 23.8% from $1,183 in the 2015–2019 survey (U.S. Census ACS 2020–2024). That's solid growth, broadly in line with many U.S. markets over the same years.

The rental vacancy rate is just 1.1%, a tight market by most standards. Census vacancy estimates for smaller places carry wide margins of error, so we check them against current local listings. 57.8% of renters spend 30% or more of their income on housing. That limits how hard rents can be pushed, so renewals and retention matter more than big increases.

About 44.8% of homes in Passaic are in buildings with 5 or more units, roughly 9,724 homes. That count was down 2.8% over five years, so new apartment supply has been limited. The median home was built in 1938. Much of the stock is old enough that roofs, plumbing and electrical systems need a close look, and older buildings are where value-add renovation plans start. For comparison, HUD's fiscal year 2027 Fair Market Rent for a two-bedroom unit in the Bergen-Passaic, NJ HUD Metro FMR Area is $2,282 a month.

Where Passaic Stands Among Its Peers

Out of 45 New Jersey cities in our data, Passaic comes in 37th for median gross rent, 4th for renter share and 32nd for five-year rent growth. Its rents sit near the bottom of the group, which keeps it affordable for tenants but also caps what renovations can earn. In raw numbers, Passaic has about 17 fewer residents, 709 more renter households and 280 fewer homes in buildings with 5 or more units than in the 2015–2019 survey.

Passaic Compared With Passaic County

Passaic's median gross rent of $1,465 is below the New Jersey median of $1,720, and its renter share is 76.2% compared with 36.2% statewide.

Can Tenants Afford Passaic Rents?

At $1,465 a month, the median Passaic rent adds up to $17,580 a year, or roughly 31.7% of what the median household earns. Under the common 30% guideline, a household needs about $58,600 a year to cover that rent comfortably. That's a heavier load than the New Jersey average of 19.9%. Renters usually earn less than the all-household median, so the real burden for tenants is higher than this simple ratio shows.

In dollars, Passaic rent climbed $282 a month over five years and household income climbed $14,507 a year. Income has outpaced rent, which means tenants have a bit more room in their budgets than they did five years ago. HUD's FY2027 Fair Market Rent for a two-bedroom unit, $2,282, is 55.8% above the median gross rent for all unit sizes. That gap matters for buildings that accept Housing Choice Vouchers, since local housing authorities base voucher payment standards on it.

Quick Facts: Passaic Rental Market

Here's the Passaic rental market in short form, with the source on every figure.

• Passaic, NJ has 70,002 residents, about flat from the 2015–2019 survey (U.S. Census ACS 2020–2024).
• Median household income in Passaic, NJ is $55,371, up 35.5% over five years (U.S. Census ACS 2020–2024).
• Median gross rent in Passaic, NJ is $1,465 a month, up 23.8% over five years (U.S. Census ACS 2020–2024).
• 76.2% of households in Passaic, NJ rent, about 16,123 renter households (U.S. Census ACS 2020–2024).
• 44.8% of homes in Passaic, NJ are in buildings with 5 or more units (U.S. Census ACS 2020–2024).
• The rental vacancy rate in Passaic, NJ is 1.1%, and 57.8% of renters spend 30% or more of income on rent (U.S. Census ACS 2020–2024).
• The median home in Passaic, NJ was built in 1938 (U.S. Census ACS 2020–2024).

What We Look For In A Passaic Apartment Building

Our buy box in Passaic is the same one we use nationwide: 5+ unit apartment buildings, stabilized or in need of work, priced on today's rents. Then we test the property against the local data on this page and a full inspection of its major systems.

Property taxes are a big line item for any New Jersey apartment building. We underwrite the tax bill after purchase, not the seller's current bill, since a sale often resets the assessment. Many New Jersey towns have their own rent control ordinances, and the rules differ from one municipality to the next. Our rent-control guides explain how these rules work. We get an insurance quote before we make an offer, because premiums have risen in most states.

We use modest rent growth assumptions, realistic repair budgets and financing that can carry the property through a slower year.

Questions To Ask About An Apartment Syndication In Passaic

The data on this page turns into a short checklist for evaluating an apartment syndication in Passaic.

• What vacancy does the plan assume? Rental vacancy in Passaic is 1.1%. A plan that assumes much lower vacancy than the market should explain why.
• What rent growth is underwritten? Rents here rose 23.8% over five years. Ask whether the plan assumes that pace continues, and what happens to the deal if rents stay flat.
• How was the property tax bill estimated? A sale often triggers a reassessment, so the bill after purchase can be well above what the seller pays today.
• What capital work is budgeted? The median home in Passaic was built in 1938, so roofs, plumbing and electrical systems deserve their own line items.
• How and when does capital come back? Ask what the plan is for a refinance or sale, and what happens if that takes longer than expected.

How Passive Investing In A Passaic Apartment Syndication Works

Here's the short version. The general partner, in this case Skyline, finds an apartment building in Passaic, buys it with a loan and investor capital, and runs it. Limited partners supply part of that capital and hold an ownership share, without landlord duties or personal liability for the loan.

Expect your money to be tied up for years, with no easy way to sell your share early, and remember that any investment can lose money. Most deals are open only to accredited investors under Rule 506(b) or 506(c). See investing with Skyline Capital for how we work with limited partners.

Getting Started

The first step is the investor network. It's free, and it's how we share market notes and get to know investors. If we buy in Passaic or elsewhere and you're eligible, we'll reach out privately with the details.