BRRRR · Market playbook

How to BRRRR in Newark, NJ

BRRRR in Newark is a 5.32% gross yield play — $2,138/mo rent on a $483k median. Whether that cash-flows depends on your debt cost.

DATA · Zillow Research (via scrape.do) · AS OF APRIL 2026

Workable 66/100

Newark is a workable BRRRR market — tight but bankable math on disciplined deals.

TL;DR — data signals
  • Gross yield 5.32% — at national baseline
  • Rent $2,138/mo vs. national $1,930 — rent-strong
  • DSCR expectation at 75% LTV / 7.5%: 1.10-1.20 tight
  • Appreciation risk to refi: flat — neutral

Start with the gross math. Newark's typical home value is $482,675; ZORI (Zillow's rent index) sits at $2,138/mo. That's 5.32% gross annual yield. That's right at the national 4-5% baseline — workable for BRRRR, but only on disciplined underwriting and a clean refi appraisal.

Run the DSCR sanity check. Assume 75% LTV refi at 7.5% interest, 30-year, plus taxes + insurance + 8% PM + 8% vacancy/capex reserve. On these inputs you'll likely clear DSCR 1.10-1.20 in Newark — tight but bankable. Don't fall in love with marginal deals; reject anything that doesn't pencil at 1.15 minimum.

Rent demand color: Newark rents ($2,138) sit 11% above the national median ($1,930). Above-average rent + below-average prices is the BRRRR sweet spot — that's why the gross yield is healthy.

Refi appraisal risk: Newark home values are flat YoY — refi appraisals should support your renovated comp on a properly scoped rehab. No softening tailwind to worry about, no appreciation tailwind to lean on.

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Newark at a glance

The numbers behind the analysis.

$483k
Median value
-1.3%
YoY
$2,138
Median rent
5.32%
Gross yield
Full Newark market report
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