Somerset, NJ

Very High · 141

New Jersey · Population 23,851 · Updated March 2026

$2,050
Median Rent / Month
$113,603
Median Income
$408,600
Median Home Value
$2,117
Owner Costs / Month

Affordability

How far your income goes in Somerset

21.7%
Rent-to-Income Ratio
Affordable
Rent takes less than 25% of median income — considered affordable by HUD standards.

Tax Burden in New Jersey

State-level tax rates that affect your costs

10.75%
Income Tax (Top Rate)
6.625%
Sales Tax
2.23%
Property Tax Rate

Estimated Annual Costs

$24,600
Annual Rent
$12,212
State Income Tax
$9,112
Property Tax (est.)

Cost of Living Overview

Somerset has a significantly higher cost of living than most US cities, driven largely by premium housing costs. With a cost index of 141 (where 100 equals the national median), Somerset residents can expect to pay median rent of $2,050/month while earning a median household income of $113,603/year.

The median home value in Somerset, NJ is $408,600, with typical monthly owner costs around $2,117 including mortgage, insurance, and taxes. The median rent-to-income ratio of 21.7% means housing is relatively affordable here — well below the 30% threshold that HUD considers cost-burdened.

New Jersey's top income tax rate of 10.75% is among the highest in the nation, adding to the overall cost burden. Combined with a 6.625% sales tax rate and 2.23% effective property tax rate, the overall tax environment is a factor in the total cost of living in Somerset.

Frequently Asked Questions

Common questions about living costs in Somerset

What is the cost of living in Somerset, NJ?
The cost of living index in Somerset, NJ is 141 (US average = 100). Median monthly rent is $2,050, median household income is $113,603/year, and the median home value is $408,600.
Is Somerset, NJ affordable?
No, Somerset is more expensive than the national average with a cost index of 141. The rent-to-income ratio is 21.7%—below the 30%% threshold considered affordable by HUD.
What is the average rent in Somerset, NJ?
The median gross rent in Somerset, NJ is $2,050 per month according to the US Census Bureau ACS 2023 data. Annual rent costs approximately $24,600.
What is the median household income in Somerset?
The median household income in Somerset, NJ is $113,603 per year. This compares to the national median of approximately $80,000.
What are the taxes like in New Jersey?
New Jersey has a top income tax rate of 10.75%, a sales tax of 6.625%, and an effective property tax rate of 2.23%.