Paterson, NJ Real Estate Guide: Buy, Sell & Rent

Paterson is the Passaic County seat, with 159,732 residents in the 2020 Census on about 8.4 square miles of land. Alexander Hamilton founded it in 1792 around the 77-foot Great Falls of the Passaic River. Today the falls, the historic mill district, a downtown train station and a deep rental market make Paterson worth a close look whether you plan to buy, sell, rent or invest. Here's what to know before you make a move.

Why People Choose Paterson

The first draw is history you can live next to. The National Park Service calls Paterson America's first planned industrial city, built by the Society for Establishing Useful Manufactures to harness the falls. Its mills turned out silk, cotton, locomotives and firearms. Paterson Great Falls National Historical Park now protects the falls and raceways. Hinchliffe Stadium, a 1932 stadium set on the escarpment above the falls, was named a National Historic Landmark and reopened after restoration for games, concerts and events.

The second draw is access. Paterson has its own NJ Transit train station, a downtown bus terminal with direct routes to Manhattan, and Interstate 80 running straight through the city. It is also home to the main campus of Passaic County Community College.

Getting Around: Commuting from Paterson

• Train: Paterson station, at Market and Ward Streets downtown, is on NJ Transit's Main Line. Trains run to Hoboken Terminal, with a transfer at Secaucus Junction for New York Penn Station. The station is accessible, with an elevator from Ward Street.
• Bus: The Broadway Bus Terminal downtown is the hub for many NJ Transit routes, including the 161 and 190 to the Port Authority Bus Terminal in Midtown, the 171 to the George Washington Bridge Bus Station and the 72 to Newark.
• Car: I-80 crosses the city. Route 19 links downtown to the Garden State Parkway and Route 46, Route 20 (McLean Boulevard) follows the Passaic River, and Route 4 begins in Paterson and heads east into Bergen County.

Neighborhoods and Housing Types

Paterson is a renter-heavy city. Census figures show about 27 percent of occupied homes are owner-occupied, so most households rent. The housing mix reflects that:

• Two-to-four family homes: Multi-unit houses are a common path to ownership, either as a home with rental income or as a pure investment.
• Apartment buildings: Rental buildings downtown and across the city.
• Single-family homes: Detached houses in the city's residential sections.
• Condominiums: Condo units give buyers another way in.

Paterson also has four local historic districts: Great Falls, Downtown Commercial, Eastside Park and Court House. In a local historic district, exterior changes such as new windows, doors, roofs, signs or additions need review by the city's Historic Preservation Commission and a Certificate of Appropriateness before work begins, even when no building permit is required.

Buying a Home in Paterson

A few things we help buyers check:

• Two-to-four family homes and FHA: An FHA loan lets you buy a two-to-four family property with a low down payment as long as you live in one of the units. Rent from the other units can help carry the mortgage.
• Rent leveling: Paterson has a Rent Leveling ordinance (Chapter 381 of the City Code), run by the Division of Rent Leveling at 125 Ellison Street. As written, it covers rental dwellings of two or more units that are not owner-occupied, and three or more units when the owner lives there. It exempts buildings where only one unit is rented, and certain multiple dwellings built after December 23, 1999 for a limited period. We'll help you review the rent roll and how the ordinance applies before you buy.
• Historic district rules: We'll flag any home in a local historic district so you can plan renovations around commission review.
• Older-home inspections: For older homes, a thorough inspection of the roof, heating, electrical and plumbing is a must, and lead paint is worth asking about.
• Flood zones: Areas along the Passaic River have a history of flooding. We check FEMA flood maps and insurance requirements for every property before you make an offer.
• Property taxes: Taxes are a major part of any New Jersey budget. We pull the current tax figure for every home you're considering.

Need financing? We can connect you with a lender for pre-approval before you start touring.

Selling Your Paterson Home

Paterson sellers market to several buyer pools at once: owner-occupants using FHA financing on two-to-four family homes, commuters who want the train or the bus to Midtown, and investors focused on rental income. A two-family is often judged on its rents, a three- or four-family on its rents and rent leveling status, and a single-family on condition and location. We'll prepare a free comparative market analysis using recent sales of homes like yours, then market your property across the MLS and every major online channel.

Renting and Investing in Paterson

With roughly three in four households renting, Paterson has a deep rental market. We help renters compare units and commutes, and we help landlords price, market and screen tenants. For investors, we'll go through realistic rents, taxes, insurance, flood exposure, rent leveling and condition with you before you buy, so the numbers work from day one.

Local Landmarks and Amenities

• Paterson Great Falls National Historical Park, plus Mary Ellen Kramer Park and its observation deck beside the falls
• Hinchliffe Stadium, a National Historic Landmark overlooking the Great Falls
• Paterson Museum, focused on the city's industrial history
• Lambert Castle at 3 Valley Road, an 1892 mansion in Garret Mountain Reservation, now under restoration by Passaic County
• Garret Mountain Reservation, with hiking, biking and overlooks of Paterson and the New York City skyline
• Eastside Park, with sports fields, monuments and a gazebo
• Westside Park, with fishing access, sports fields and the historic Van Houten House
• Passaic County Community College, Paterson main campus at Broadway and Memorial Drive
• Public schools: Paterson Public Schools, including Eastside High School and John F. Kennedy High School

Nearby Town Guides

Comparing Paterson with nearby towns? Read our guides to Clifton, Haledon, Hawthorne and Totowa, or browse all of our North Jersey town guides.

Talk to a Local Broker

The Thompson Realty Group is a licensed New Jersey real estate brokerage based at 20 MacArthur Ave in Garfield, serving buyers, sellers, renters and investors across Bergen, Essex, Hudson, Passaic and Union counties. Whether you're a first-time FHA buyer, a cash investor, or a homeowner wondering what your place is worth, we'll give you straight answers about Paterson.

Call or text 201-928-5562 or book a free 15-minute consultation. You can also search every active New Jersey listing on our website.

Information on this page is provided for general guidance and is believed accurate as of October 2026. Programs, ordinances, taxes and transit schedules change, so please verify details for any specific property. Equal Housing Opportunity.