Is Asbury Park, New Jersey Good for Airbnb Investment?

To start an Airbnb in Asbury Park, New Jersey, begin by researching local regulations as the city requires short term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on minimum stay requirements (often 3 to 7 days).

Launch checklist

• Contact Asbury Park's Planning and Zoning Department to confirm your property's eligibility and obtain necessary permits including a Certificate of Occupancy for short term rentals, which may require safety inspections and compliance with fire codes.
• Find a suitable property by purchasing or leasing in neighborhoods like the West Side or areas near the boardwalk, ensuring the lease allows short term rentals if renting.
• Furnish the space with quality furniture, linens, kitchen essentials, and beach themed decor appropriate for the coastal location, budgeting approximately $5,000 to $15,000 for a complete setup.
• Create listings on Airbnb, VRBO, and Booking.com with professional photos highlighting proximity to the beach, Stone Pony, and Convention Hall, setting competitive rates of $150 to $400 per night depending on season and property size.
• Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, providing local guidebooks featuring Asbury Park attractions.

To identify profitable short term rental properties in Asbury Park, New Jersey, focus on locations within 0.5 miles of the boardwalk, Convention Hall, and Stone Pony, as these areas command premium rates year round with properties averaging $200 to 400 per night during peak summer season.

What to prioritize

• Target 2 to 4 bedroom properties built after 1950 with parking, outdoor space, and modern amenities, as walkability to beach attractions is crucial for guest satisfaction and repeat bookings.
• Analyze pricing using AirDNA and Mashvisor to identify properties generating $40,000 to 80,000 annually, comparing cap rates of 8 to 12% typical for the market, while monitoring seasonal fluctuations where summer months can generate 60% of annual revenue.
• Research competition by studying similar properties within a 10 block radius of your target location, noting occupancy rates typically range 65 to 85% for well positioned properties, and identify gaps in amenities or pricing strategies.
• Utilize Zillow, Realtor.com, and local MLS data through Monmouth County resources, while connecting with Asbury Park specific Facebook groups and consulting with local property managers familiar with city regulations.

To obtain an Airbnb/STR permit in Asbury Park, New Jersey, you must first apply through the City of Asbury Park's Planning and Zoning Department located at City Hall, 1 Municipal Plaza, by submitting a Short Term Rental License application which requires a completed application form, proof of property ownership or lease agreement. The process typically takes 4 to 6 weeks for approval, during which the city will conduct inspections to ensure compliance with local zoning laws, fire safety codes, and occupancy limits of no more than 2 guests per bedroom with a maximum of 8 guests total per property.

Documents and approvals

• Asbury Park requires that all STR properties maintain a local contact person available 24/7, display the license number in all advertisements, collect and remit local occupancy taxes, and renew the license annually by December 31st.

Short term rentals (STRs) are legal in Asbury Park, New Jersey, but operate under specific municipal regulations that were updated around 2019 to 2020.

Core operating requirements

• The city requires STR operators to obtain a business license and comply with zoning restrictions, with rentals primarily permitted in certain residential and mixed use zones while being prohibited in some historic districts and areas with deed restrictions.
• Properties must meet safety requirements including smoke detectors, carbon monoxide detectors, and fire extinguishers, and operators are subject to occupancy limits typically based on bedroom count plus additional guests.
• The city has implemented noise ordinances and parking requirements, with violations potentially resulting in license revocation.
• Recent changes have included stricter enforcement mechanisms and clearer application processes, with the city balancing tourism revenue against neighborhood character preservation.
• Property owners must also comply with New Jersey state tax requirements and may face additional restrictions from homeowners associations or condo boards in certain developments.

The best areas for Airbnb investment in Asbury Park, New Jersey are the Oceanfront District near the boardwalk and beach, which attracts summer tourists and beachgoers year round; the Downtown/Cookman Avenue corridor, popular for its vibrant nightlife, restaurants. These districts are attractive because Asbury Park has experienced significant revitalization since the early 2000s, transforming from a declining shore town into a hip destination that combines beach tourism with a thriving arts and music scene.

In Asbury Park, New Jersey, Airbnb hosts are subject to multiple lodging taxes including the state's 6.625% sales tax on accommodations, New Jersey's 5% occupancy tax, and Asbury Park's local occupancy tax of approximately 3 to 5%.

Taxes and filing responsibilities

• These taxes apply to short term rentals under 90 days and are typically collected by Airbnb directly from guests at the time of booking through their automated tax collection system, which began around 2018 to 2019.
• Airbnb remits these taxes quarterly to the New Jersey Division of Taxation and local municipalities on behalf of hosts, though hosts should verify their registration status and may need to file additional paperwork.
• The state sales tax and occupancy tax are collected together, while the local municipal tax is handled separately.
• Exemptions are limited and generally apply only to stays exceeding 90 consecutive days, certain government employees on official business, or guests with valid tax exempt certificates.
• Hosts should maintain records of all bookings and tax collections, and properties must be properly registered with both state and local authorities.

Starting an Airbnb in Asbury Park, New Jersey requires significant upfront investment across multiple categories.

Cost breakdown

• Property purchase costs average $450,000 for a median 2 bedroom home suitable for short term rental in the area as of 2024.
• Furnishing costs typically range $15,000 to 25,000 including beds, sofas, dining sets, appliances, linens, and décor to create an attractive rental space.
• Initial setup expenses include $2,000 to 3,000 for professional photography, listing creation, smart locks, and basic technology upgrades.
• Permits and fees in Asbury Park include a short term rental license ($200), business registration ($50), and potential zoning compliance costs ($500 to 1,000).
• Insurance premiums for short term rental coverage average $2,400 annually, or $1,200 for six months.
• Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $800 to 1,200 initially.
• First six months operating costs include utilities ($1,800), cleaning services ($3,600 assuming $150 per turnover), maintenance reserves ($2,000), platform fees to Airbnb and VRBO ($4,800 based on $8,000 monthly revenue), and marketing expenses ($1,200).
• The total estimated startup cost ranges from $485,350 to $495,450, with ongoing operational expenses of approximately $13,400 for the first six months.

Airbnb properties in Asbury Park, New Jersey, demonstrate strong profitability potential with average annual revenues ranging from $35,000 to $65,000 for well positioned properties, particularly those within walking distance of the boardwalk and music venues like The Stone Pony.

Profitability indicators

• Operating expenses typically run 40 to 50% of gross revenue, including cleaning fees ($75 to $125 per turnover), property management (15 to 25%), utilities ($200 to $400 monthly), insurance ($1,500 to $3,000 annually), and maintenance costs.
• Properties near Convention Hall and the beach command premium rates of $150 to $350 per night during peak summer months (June September), while off season rates drop to $80 to $180, with occupancy rates averaging 65 to 75% annually for top performing listings.
• Success factors include proximity to attractions like the Asbury Park Boardwalk, professional photography, responsive host communication, and strategic pricing during major events such as Sea.Hear.Now Festival.
• The market benefits from Asbury Park's renaissance as a cultural destination, strong weekend demand from New York City visitors, and year round appeal due to music venues and dining establishments.

Airbnb investments in Asbury Park, New Jersey typically generate annual ROI of 12 to 18% with cash on cash returns ranging from 8 to 15%, driven by the city's strong summer tourism season and year round music venue attractions.

Return planning figures

• Properties within walking distance of the boardwalk and Stone Pony venue command premium rates of $150 to 300 per night during peak season (May September) and $80 to 150 during off season, with average occupancy rates of 65 to 75%.
• Initial investment costs average $400,000 to 600,000 for suitable 2 to 3 bedroom properties, with renovation costs of $30,000 to 50,000 to meet short term rental standards.
• Most investors achieve profitability within 18 to 24 months, factoring in New Jersey's property taxes averaging 2.4% annually and Asbury Park's 3% hotel tax on short term rentals.
• The market has shown consistent 6 to 8% annual appreciation since 2018, supported by ongoing downtown redevelopment projects and proximity to New York City, making it attractive for both cash flow and long term appreciation strategies.

STRSearch is a national platform that specializes in identifying profitable short term rental investment opportunities including in Asbury Park, New Jersey.

Companies and resources

• Local real estate agents who focus on Airbnb investments in the area include Keller Williams Shore Properties agents like Sarah Mitchell and Century 21 agents such as Michael Rodriguez who have experience with vacation rental properties since 2018.
• National services include BiggerPockets for investor networking, Mashvisor for property analysis and market data, AirDNA for short term rental analytics, and Roofstock which expanded into the New Jersey market in 2020.
• Local property management companies that assist investors include Shore Property Management and Jersey Shore Vacation Rentals, while national companies like RedAwning and Vacasa provide turnkey Airbnb management services.
• Real estate investment firms such as Meridian Capital Group and local brokerages like Diane Turton Realtors have agents specializing in investment properties along the Jersey Shore.