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Cap Rate Analysis: Clifton, NJ

Investment metrics, interactive calculators, and data-driven analysis for Clifton rental properties.

Challenging for pure cash flow
Based on $420,000 median price and $1,850/mo median rent
Est. Cap Rate
2.10%
1% Rule
0.44%
Fails
GRM
18.9x
Price / Income
6.7x

Market Data

Median Home Price$420,000
Median Monthly Rent$1,850
Property Tax Rate2.12%
Population90,000
Population Growth0.2% / yr
Median Household Income$62,400
Vacancy Rate5%
Annual Appreciation2.5%

Cap Rate Calculator — Clifton

Pre-filled with Clifton medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
2.12% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
1.55%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$6,510
net operating income
Gross Rent Multiplier
18.9x
High (>15)
1% Rule
0.44%
✗ Fails
Monthly Cash Flow
$543
before debt service
Annual Breakdown
Gross Rental Income$22,200
Less Vacancy−$1,110
Effective Income$21,090
Less Operating Expenses−$14,580
Net Operating Income$6,510

Cash-on-Cash Return — Clifton

Factor in financing to see your actual return on invested capital in Clifton.

$
$105,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-10.01%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$117,600
$105,000 down + $12,600 closing
Monthly Mortgage
$2,054
on $315K loan
Monthly Cash Flow
$-981
after all expenses
Annual Cash Flow
$-11,767
before taxes
Cash Flow Breakdown
Monthly Rent$1,850
Less Expenses−$777
Less Mortgage−$2,054
Monthly Cash Flow$-981

Is Clifton a Good Place to Invest in Rental Property?

Clifton, NJ has a population of 90,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $420,000 paired with median rents of $1,850/mo produces an estimated cap rate of 2.10%.

Property taxes at 2.12% are notably high and represent a significant drag on cash flow — model this expense carefully, as it can make or break a deal. The vacancy rate of 5% is moderate and within normal parameters for a healthy rental market.

At a price-to-income ratio of 6.7x, homes cost about 6.7 times the local median income of $62,400. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.5% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: At current median prices, Clifton is challenging for pure cash flow investing. Consider BRRRR strategies with below-market purchases, or look at neighboring metros with stronger price-to-rent ratios.

Run a BRRRR analysis for Clifton
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