Rent vs buy in Passaic, NJ
In Passaic, New Jersey, typical rent is $2,055 /mo and the typical home is $555,039.
Over 7 years, renting comes out ahead by $135k
Using Passaic's typical rent and home value, 20% down and today's mortgage rate. No break-even within 30 years.
Clearly labeled opinion, with the math shown. These are estimates, not quotes. Adjust one figure and the stamp updates.
- Renting leads by
- $135k after 7 years
- Break even point
- 30+ years owning never catches up sooner
- What owning really costs
- $5,453 /mo year 1, against $2,055 rent
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Is renting or buying cheaper in Passaic?
Counting the money you get back when you sell, renting is cheaper by $135,434 over 7 years. In every year shown, renting's net cost sits below owning's, and owning never catches up within 30 years.
Rent. Buy. Net cost to date, by year.
Average rent compared with the mortgage payment in Passaic
Rent and the mortgage payment don't tell the whole story. Here are all monthly costs for year 1, based on Passaic's typical price.
| Each month, year 1 | Amount | What it is |
|---|---|---|
| Rent | $2,055 | All of it, every month |
| Mortgage payment | $3,026 | $2,667 of it is interest in year 1 |
| Property tax | $1,078 | 2.33% of the value a year |
| Insurance | $112 | Census median for the city |
| Upkeep | $463 | 1% of the value a year |
| Owning, cash out | $4,678 | $359 of it builds equity |
| Lost return on the down payment | $902 | What your cash would earn yearly at 8.3% |
| Buying costs, spread out | $231 | 3.5% of the price over 7 years |
| True cost of owning | $5,453 | Cash out minus the equity share, plus the two lines above it. |
The Passaic verdict, by the numbers
- Typical home value Zillow ZHVI, September 2026
- $555,039
- Typical rent Zillow ZORI, September 2026
- $2,055 /mo
- Down payment: 20% means no private mortgage insurance, and the engine doesn't model that.
- 20%
- Mortgage rate: The Freddie Mac Primary Mortgage Market Survey (FRED MORTGAGE30US)
- 7.24%
- How home prices have grown: FHFA house price index covering New Jersey, 1995 to 2025
- 4.7% per year
- Rent growth: the CPI primary residence rent series, yearly growth 2006 to 2026
- 3.5% per year
- Savings return: 60% S&P 500 with dividends, plus 40% 10-year Treasuries, rebalanced each year, 1928 to 2025
- 8.3% per year
- Property tax: the Census ACS 2020-2024, Passaic data
- 2.33% of home value
- Home insurance: the Census ACS 2020-2024, Passaic data
- $112 per month
- Maintenance: Fannie Mae, lower end of the 1% to 4% range
- Each year, 1% of the value
- Buying costs: Freddie Mac, midpoint of the 2% to 5% range
- 3.5% of the price
- Selling costsAgent commission and closing costs
- 6% of the price
What would change the verdict in Passaic?
Each line marks the 7-year verdict in Passaic flipping, with everything else left as it is.
When renting wins
- Home prices grow at under 7.6% a year (4.7% is New Jersey's long-run rate, the one we use).
- The mortgage rate remains above 2.83%.
- Renting a home like this costs less than $3,510 a month. Here the typical rent is $2,055.
- Owning never catches up at these numbers, regardless of when you move during the next 30 years.
When buying wins
- Home prices grow at more than 7.6% a year.
- You lock in a mortgage rate under 2.83% (today's 7.24%).
- Renting that home would run more than $3,510 a month.
Passaic compared with the other 812 cities
| Measure | Passaic | Median city |
|---|---|---|
| Typical home value | $555,039 | $422,451 |
| Typical rent | $2,055 /mo | $1,837 /mo |
| Price-to-rent ratio | 22.5 (#223 of 813) | 18.5 |
| Home prices, last 10 years | 7.2% a year | 6.2% a year |
| Property tax | 2.33% | 0.87% |
| Households that rent | 76% | 42% |
Sources used: Zillow ZHVI and ZORI, Census ACS 2020-2024.
Cities elsewhere in New Jersey
- Renting comes out ahead in Newark, NJ, by $74k.
- Rent. Jersey City, NJ. Renting is ahead by $53k.
- Rent. Paterson, NJ. Renting is ahead by $163k.
- Rent. Elizabeth, NJ. Renting is ahead by $114k.
- Rent. Trenton, NJ. Renting is ahead by $26k.
- Rent. Clifton, NJ. Renting is ahead by $106k.
- Rent. Bayonne, NJ. Renting is ahead by $122k.
- Rent. East Orange, NJ. Renting is ahead by $114k.
- Buy. Camden, NJ. Buying is ahead by $77k.
- Rent. Union City, NJ. Renting is ahead by $98k.
- Renting comes out ahead in Vineland, NJ, by $13k.
- Renting comes out ahead in Hoboken, NJ, by $57k.