Paterson, New Jersey Short-Term Rental Market
The Paterson area STR market averaged $230 a night at 67.9% occupancy in June 2026, with revenue up 20%.
Quick Answer: Paterson, New Jersey is an active short-term rental market. average occupancy in the Jersey City/Newark market area is 60%. average monthly revenue in the Jersey City/Newark market area is $3,372. average daily rate in the Jersey City/Newark market area is $189. the top operator in the Jersey City/Newark market area is Hudson Dorms with 121 listings. market score is 77/100 (grade B).
Market data reflects the Jersey City/Newark regional market, which includes Paterson. Regulations, taxes, and permit details below are specific to Paterson.
Market Score Breakdown
Five dimensions StaySTRA evaluates per market.
Market Overview
Paterson, one of New Jersey’s largest and most ethnically diverse cities and a former industrial hub anchored by Paterson Great Falls National Historical Park, has its short-term rental performance tracked as part of a wider regional StaySTRA data series; this profile omits total listing counts, bedroom and channel mix, and property manager rankings since that dimension and property manager data is tracked at a shared regional level rather than uniquely for Paterson.
The Paterson area’s own STR performance averaged $230.09 a night (ADR) at 67.9% occupancy in June 2026, generating an average of $4,049 in monthly revenue per listing. Revenue is up a striking 20.5% year over year and ADR is up 9.4%, while occupancy is down 3.7%, meaning strong rate gains are driving growth even as bookings softened somewhat.
Revenue varies by property type in the Paterson area itself: apartment-style units average $4,263 a month, entire-place units average $5,177, and standalone houses average $3,699, an unusual ordering in which houses actually generate the least of the three categories here.
Paterson’s tourism centers on heritage and history rather than resort or leisure lodging, anchored by the free-admission Paterson Great Falls National Historical Park, Lambert Castle, the Paterson Museum, and the recently restored Hinchliffe Stadium, a historic Negro League ballpark, drawing largely day-trip visitors from the dense New York City and North Jersey metro.
Seasonal Patterns
| Month | Occupancy |
|---|---|
| Jan | 43% |
| Feb | 57% |
| Mar | 63% |
| Apr | 65% |
| May | 69% |
| Jun | 71% |
| Jul | 69% |
| Aug | 68% |
| Sep | 72% |
| Oct | 69% |
| Nov | 61% |
| Dec | 68% |
Month-by-month nightly rates and revenue figures for Paterson are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Top Short-Term Rental Operators in Jersey City/Newark market area
Ranked by total active listings. Useful for understanding the competitive landscape. Operator data is published for the Jersey City/Newark market as a whole, which includes Paterson, so these counts are not Paterson-only figures.
| # | Operator | Listings | Reviews | Rating |
|---|---|---|---|---|
| 1 | Hudson Dorms | 121 | 1,741 | ★ 4.69 |
| 2 | Evonify | 88 | 2,308 | ★ 4.37 |
| 3 | LilyRentals | 76 | 515 | ★ 4.12 |
| 4 | Underpass Properties LLC | 74 | 11,664 | ★ 4.68 |
| 5 | BP Stays | 68 | 2,207 | ★ 4.60 |
What Kind of STR Should I Buy in Paterson?
Revenue and nightly-rate breakdowns by bedroom count, property tier, and dwelling type for Paterson are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Channel Mix
Distribution of bookings across major STR platforms.
| Channel | Share |
|---|---|
| airbnb | 74.7% |
| vrbo | 3% |
| both | 22.3% |
Home Value Trends (Paterson)
Typical home values, median sale prices, and the 10-year price trend for Paterson are available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Booking Insights
Booking-window and length-of-stay analysis for Paterson — how far ahead guests book and how to price around it — is available to StaySTRA Pro members. Unlock with StaySTRA Pro or analyze a specific address free.
Short-Term Rental Regulations
Paterson is one of the more STR-friendly cities in North Jersey because it has no dedicated short-term rental ordinance, no STR license requirement, and no local hotel or motel occupancy tax. This contrasts sharply with nearby Jersey City and Newark, which impose strict STR licensing and local taxes.
That said, no STR rules does not mean no rules at all. Two things still apply. First, all residential rentals in Paterson fall under the city’s rent control and rent leveling ordinance and must file annual property and rent-roll registration with the city. Second, short-term rentals are not explicitly named as a permitted use in residential zoning, so an owner should confirm with the Division of Planning and Zoning whether a specific parcel allows transient rental use; a zoning permit or variance may be needed.
On taxes, Paterson levies no municipal occupancy tax, but state-level taxes apply when a stay is booked through a marketplace like Airbnb or Vrbo: New Jersey’s 6.625% state sales tax plus the 5.0% State Occupancy Fee, roughly 11.6% combined, are collected. Rentals booked directly from a non-professional owner operating fewer than three units are generally exempt from these state taxes, and marketplaces typically collect and remit the state taxes automatically.
Enforcement is rated minimal. Investors should still monitor this market, since several other New Jersey municipalities, including Jersey City and Newark, have tightened STR rules in recent years, and Paterson could follow.
Market Comparison
The Paterson area’s 67.9% occupancy runs well above the national short-term rental median of roughly 55%, about 12.9 percentage points higher, while its $230.09 ADR is roughly 4.6% above a national median ADR of about $220. This above-average occupancy at a near-median rate reflects Paterson’s position as a dense, accessible North Jersey market with steady regional and metro-area demand rather than premium leisure pricing.
Property manager data for this market area is tracked at a shared regional level rather than uniquely for Paterson, so no property manager breakdown is presented here. Buyers researching management options should verify any specific operator’s actual coverage of the North Jersey and greater New York City metro area directly. Paterson’s own housing and regulatory profile, covered elsewhere in this report, remain reliable at the city level regardless of this limitation.
Frequently Asked Questions About Paterson, New Jersey
What is the average Airbnb occupancy rate in Paterson, NJ?
What is the average nightly rate for a vacation rental in Paterson, NJ?
Do I need a permit to run a short-term rental in Paterson?
How much revenue does the average Paterson area short-term rental generate per month?
When is peak season for vacation rentals in Paterson?
What lodging tax applies to short-term rentals in Paterson?
Are Paterson's rules stricter than nearby Jersey City or Newark?
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