Stanhope's housing stock reflects its long history, mixing late-19th and early-20th-century homes near the center of town with mid-century and newer single-family houses on the surrounding streets. Lake Musconetcong adds a layer of waterfront and lake-view properties that are a distinctive part of the local market. As a small, fully developed borough, Stanhope has limited room for large new subdivisions, so the inventory skews toward established homes on modest lots, many within walking distance of downtown and the borough's schools.

Stanhope is a compact borough organized around its downtown and the I-80/Route 206 junction. Residential streets radiate from the historic center, and a stretch of homes lines the shore of Lake Musconetcong, the natural lake that borders the borough and nearby Byram Township. The Waterloo Village area and the canal corridor form the historic edge of town. There are no large master-planned developments; instead, Stanhope's neighborhoods are defined by their era of construction and their proximity to the lake, the downtown, and the highway.

Life in Stanhope blends a small borough's close-knit feel with easy access to Sussex County's outdoor lifestyle. The borough's history is visible in its older streets, the canal-era surroundings, and the nearby Waterloo Village, a restored Morris Canal settlement that hosts events and living-history programs. Residents enjoy lakefront recreation on Lake Musconetcong and quick trips to Kittatinny Valley State Park, while the county's farms, orchards, and seasonal attractions—from the Sussex County fair to winter skiing—sit just up Route 206 or 23. Commuters, outdoor enthusiasts, and families all find a foothold in Stanhope's compact, walkable center.

Stanhope operates its own public schools for elementary and middle grades, keeping younger students close to home within the borough. High school students attend Lenape Valley Regional High School, located in Stanhope at 28 Sparta Road, which serves Stanhope together with the neighboring communities of Byram and Netcong. The regional high school offers a full academic program plus athletics and activities, giving the three small sending towns a shared secondary campus while each retains its own local elementary and middle schools.

Stanhope's location is defined by transportation. Interstate 80 runs through the borough, providing a direct east-west link toward Morristown, Newark, and New York City to the east and the Delaware Water Gap and Pennsylvania to the west. Route 206 passes through town on a north-south axis, connecting to the rest of Sussex County and toward I-287. Commuter rail service is available at nearby Netcong, and the combination of the interstate, the state route, and the rail option makes Stanhope one of the most accessible towns in the county.

Outdoor recreation anchors Stanhope's appeal. Lake Musconetcong, a natural lake straddling the Stanhope-Byram area, offers boating and fishing, and Kittatinny Valley State Park sits just north of town with trails, lakes, and open space. Waterloo Village, a restored 19th-century canal town along the Musconetcong River, hosts concerts, festivals, and living-history events. Farther up Route 206, Sussex County's state parks, the Delaware Water Gap, and the region's ski areas extend the outdoor season year-round.