Authorities say several people were arrested after partygoers began breaking bottles and burning furniture in the area of Delafield street.
No serious injuries were reported, but many people said they were pepper sprayed as police worked to clear the scene.
Authorities say most of those arrested were cited for disorderly conduct or simple assault.
Witnesses say a booze and pot-filled party called "Delafest" culminated with students burning a couch in the middle of the street.
Police quickly raided the area and ordered students to move - most did, but not everyone.
That is when the cops sent in a riot squad armed with pepper spray to disburse the crowd of several hundred.
Cell phone video captured the ensuing chaos as police struggled to get the Rutgers students under control.
Police even searched off-campus houses for instigators, and handed out $400 noise citations.
Students took to social media to document what happened, posting on Twitter and Facebook.
"Police were pepper spraying people, there were couches getting burned. There was pretty much chaos," said student Brian MacNiven.
The party, dubbed "Delafest" is in response to "Rutgersfest", a block party that the university had cancelled because it got too rowdy.
There is no comment from Rutgers University yet on the off-campus disturbance.