Paterson, NJ Airbnb Market Data, Statistics, and Occupancy Rates

Paterson Short-Term Rental Market Overview

Paterson, NJ is a small, emerging short-term rental market with just 32 active Airbnb listings and an average annual revenue of $14,882 per property. With an ADR of $158—well below the $430 state average—and occupancy running at 27% versus 34% statewide, the market currently presents limited yield for most investors. However, active listings have grown 119% year over year, signaling rising host interest and possibly untapped traveler demand tied to Paterson's proximity to the broader New York metro area.

Key Market Statistics

According to Rabbu market data, the Paterson short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Paterson

Investors may consider Paterson for its low entry-level supply count and favorable supply/demand dynamics relative to other New Jersey markets, though current revenue-to-price ratios warrant careful property-level analysis.

Expert Market Assessment

"Based on current data, Paterson presents limited investment potential with a Rabbu ROI Score of 31 out of 100. Revenue relative to property prices is below average—average home values sit at $617,720 while annual STR revenue averages just $14,882—making cash-flow-positive operation challenging without significant pricing or occupancy outperformance. Seasonality is pronounced: July peaks near $1,844 in average monthly revenue while February dips to just $666, creating meaningful income volatility through the year. Investors who do pursue this market should focus on property-specific advantages, such as superior location or amenity mix, to differentiate from the growing competitive set."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Paterson

Average revenue by month in Paterson

Revenue in Paterson follows a clear seasonal arc, peaking in July at $1,844 and bottoming out in February at $666—a nearly 2.8x spread that investors should account for in cash-flow planning. The May-through-September stretch consistently delivers above-average monthly returns, while the four winter months (December through March) all fall below $1,200.

Active Airbnb listings by property size in Paterson

The market is overwhelmingly composed of one-bedroom listings, which account for 20 of the 32 active properties, with two-bedroom units making up the remaining 8. The absence of larger properties (3+ bedrooms) could represent either a lack of suitable housing stock or an underserved niche for investors willing to offer more space.

Average daily rate (ADR) by property size in Paterson

Two-bedroom listings in Paterson command a significant ADR premium at $244 per night compared to $107 for one-bedrooms—more than double the nightly rate. This steep jump suggests that guests needing additional space have fewer options and are willing to pay substantially more, making two-bedroom configurations potentially attractive from a pricing standpoint.

Average RevPAN by property size in Paterson

Despite their higher ADR, two-bedroom listings actually deliver lower RevPAN at $30 compared to $38 for one-bedrooms, largely due to their much weaker occupancy. This indicates that while two-bedroom nightly rates are appealing, filling those nights consistently remains a challenge in this market.

Average occupancy rates by property size in Paterson

One-bedroom units maintain a 36% occupancy rate—significantly higher than the 13% average for two-bedroom listings—suggesting that budget-conscious or solo travelers drive most of the demand in Paterson. The steep occupancy gap for two-bedrooms signals potential cash-flow risk for investors targeting that segment unless they can meaningfully outperform market averages.

Average monthly revenue by property size in Paterson

Two-bedroom properties edge out one-bedrooms in average monthly revenue at $1,420 versus $934, thanks to their higher nightly rates offsetting lower occupancy. However, the $486 monthly gap may not fully compensate for the additional acquisition and furnishing costs associated with larger units.

Average annual revenue by property size in Paterson

On an annual basis, two-bedroom listings generate roughly $17,042 compared to $11,218 for one-bedrooms, a $5,824 difference that investors should weigh against the higher purchase price and operating costs of larger properties. Given the market's overall limited revenue potential, careful underwriting at the property level is essential regardless of size.

Most common amenities for Airbnb listings in Paterson

Kitchen (94%), parking (91%), and self check-in (81%) dominate the amenity landscape in Paterson, reflecting guest expectations for functional, apartment-style accommodations. The high prevalence of workspace (75%) is notable and suggests a meaningful share of guests may be remote workers or business travelers, which could inform how investors position and market their listings.

Understanding Paterson's ROI Score: 31/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Paterson's ROI Score of 31 out of 100 places it in the "Limited" investment band, driven primarily by a below-average revenue-to-price ratio and below-average occupancy stability—average home values of $617,720 generate only about $14,882 in annual STR revenue. The market does show an above-average supply/demand balance given its small listing count, and its growth trend rates as average. Investors interested in this market should pair these data points with thorough local regulatory research and property-specific financial modeling to determine whether individual deals can outperform market averages.

Short-Term Rental Regulations in Paterson

Understanding local STR regulations is essential before investing in Paterson. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Paterson, NJ may be required to obtain a permit or register their property with the city before listing on platforms like Airbnb. Investors should verify current requirements directly with Paterson's municipal offices and check for any New Jersey state-level registration obligations.

Key Restrictions

Common restrictions in New Jersey markets can include occupancy limits, minimum-stay requirements, noise ordinances, and parking regulations. Additionally, HOA or condo association rules may prohibit or limit short-term rentals in certain buildings, so investors should review all governing documents before purchasing.

Tax Obligations

STR hosts in New Jersey are generally subject to state sales tax and local occupancy or tourism taxes. Platforms like Airbnb often collect and remit some of these taxes automatically, but operators should confirm their full tax obligations with the New Jersey Division of Taxation and local authorities.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Paterson can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Paterson's STR market is likely to remain in an early-stage growth phase. The rapid supply increase (119% YoY listing growth) could put further pressure on already-soft occupancy rates unless traveler demand catches up, so investors should expect occupancy to hover around 25–30% in the near term. Seasonal revenue swings suggest summer months will continue to drive the bulk of annual income, with monthly averages potentially reaching $1,800–$1,900 at peak. ADR may tick up modestly by 1–3% as the market matures, but meaningful improvement hinges on whether demand growth keeps pace with new supply."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Paterson, NJ

What is the average Airbnb occupancy rate in Paterson?

The average Airbnb occupancy rate in Paterson is currently 27%, which trails the New Jersey state average of 34%. One-bedroom listings perform notably better at 36% occupancy, while two-bedroom units average only 13%. These figures reflect the market's early stage and relatively modest demand levels, though individual properties with strong reviews and competitive pricing can outperform these averages.

How much do Airbnb hosts make in Paterson?

On average, Airbnb hosts in Paterson earn approximately $1,240 per month or $14,882 per year based on trailing 12-month booking data. Revenue varies significantly by property size: one-bedroom listings average about $11,218 annually, while two-bedroom properties bring in roughly $17,042 per year. Peak summer months like July can generate around $1,844 in monthly revenue, while winter months may drop below $700.

Is Paterson a good market for Airbnb investment?

Paterson currently carries a Rabbu ROI Score of 31 out of 100, indicating limited investment potential based on available data. The revenue-to-price ratio is below average given average home values of $617,720 and annual STR revenue of $14,882. That said, the market's small listing count (32) and 119% year-over-year supply growth suggest it's still in an early phase. Investors willing to conduct deep, property-specific due diligence and who can secure properties at below-average prices may still find workable opportunities.

What is the average daily rate (ADR) for Airbnb in Paterson?

The average daily rate for Airbnb listings in Paterson is $158, which is significantly below the New Jersey state average of $430. One-bedroom properties average $107 per night, while two-bedroom listings command a much higher $244 per night. The lower ADR partly reflects Paterson's positioning as a more affordable alternative within the broader northern New Jersey and New York metro region.

Are short-term rentals legal in Paterson?

Short-term rentals can be operated in Paterson, NJ, but hosts should verify current local permit and registration requirements with the city. New Jersey municipalities have varying rules regarding STR operations, including potential zoning restrictions, occupancy limits, and tax obligations. We recommend consulting with Paterson's municipal government and a local real estate attorney to ensure full compliance before listing a property.

When is peak season for Airbnb in Paterson?

Peak season for Airbnb in Paterson runs from May through September, with July being the strongest month at an average revenue of $1,844. June and August also perform well, averaging $1,662 and $1,759 respectively. The slowest months are January and February, when average revenues drop to $736 and $666—representing roughly a 2.8x swing between peak and off-peak performance.

How many Airbnbs are there in Paterson?

As of late April 2026, there are 32 active Airbnb listings in Paterson. The supply is concentrated in smaller properties: 20 listings are one-bedroom units and 8 are two-bedroom properties. Notably, the market has experienced 119% year-over-year growth in active listings, suggesting increasing host interest in the area.

How is Airbnb revenue calculated in Paterson?

The annual and monthly revenue figures for Paterson are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market—not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll up the remaining data to a market-level historical average. Because each month uses its own historical performance, seasonal peaks (like July's $1,844) and slower months (like February's $666) are naturally reflected in the numbers. Individual results can vary based on property quality, pricing strategy, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Paterson, NJ market
• Average daily rate, occupancy, and RevPAN metrics across property sizes
• Monthly and annual revenue trends based on trailing 12-month booking data
• Home value benchmarks sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to inform property setup decisions

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages as of April 2026 and may not capture very recent market shifts. Local regulations, HOA restrictions, and tax obligations vary and should be independently verified before making any investment decisions.