Is Eatontown, New Jersey Good for Airbnb Investment?

To start an Airbnb in Eatontown, New Jersey, begin by researching local zoning laws and regulations through the Eatontown Borough Hall, as the township requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to primary residences or specific zones. Contact the Monmouth County Health Department for any required health permits and ensure compliance with New Jersey state tax requirements including registering for sales tax collection. Find a suitable property by searching residential areas near Fort Monmouth or close to the Jersey Shore attractions, considering proximity to NYC transportation links which attract many visitors. Once you secure a property, furnish it with quality basics including comfortable bedding, kitchen essentials, WiFi, and safety equipment like smoke detectors and fire extinguishers as required by New Jersey fire codes. Create your listing on Airbnb with professional photos highlighting the property's proximity to beaches, Red Bank, and NYC accessibility via NJ Transit. Set competitive pricing by researching similar properties in Eatontown and nearby areas like Red Bank or Long Branch. For ongoing management, establish check-in procedures, maintain regular cleaning schedules, respond promptly to guest communications, and keep detailed records for tax purposes including the required New Jersey sales tax remittance and local business license renewals which typically occur annually in Eatontown.

To identify profitable short-term rental properties in Eatontown, New Jersey, focus on locations within 2-3 miles of major attractions like Monmouth Park Racetrack, Fort Monmouth redevelopment area, and proximity to beaches (15-20 minutes to shore points). Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, parking spaces, outdoor areas, and updated kitchens/bathrooms that can accommodate 4-8 guests. Analyze pricing by researching comparable Airbnb listings in Eatontown, Red Bank, and Tinton Falls, aiming for properties that can generate $150-250 per night during peak summer months and $100-150 off-season. Conduct competition research using AirDNA and Mashvisor to identify supply gaps, with particular attention to corporate housing demand from Fort Monmouth's ongoing development and seasonal beach traffic. Utilize tools like Zillow and Realtor.com for property searches, STR Helper for rental analysis, and local resources including Monmouth County tourism data and Eatontown's zoning regulations to ensure compliance with municipal short-term rental ordinances before investing.

To obtain an Airbnb/STR permit in Eatontown, New Jersey, you must first contact the Eatontown Borough Clerk's office at Borough Hall located at 47 Broad Street to inquire about short-term rental regulations, as the borough may require a business license or special use permit. Submit an application to the Planning and Zoning Department including required documents such as proof of property ownership or lease agreement, certificate of occupancy, floor plans, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate from the Eatontown Fire Department, and a completed short-term rental registration form. Pay applicable fees which typically range from $100-300 for the initial permit plus inspection fees of approximately $75-150. Schedule required inspections with the Building Department and Fire Department to ensure compliance with safety codes, occupancy limits, and fire safety requirements. The timeline is generally 4-6 weeks from complete application submission to permit approval, depending on inspection scheduling and any required corrections. Eatontown specific requirements likely include adherence to residential zoning restrictions, maximum occupancy limits based on bedrooms and square footage, designated parking spaces, noise ordinance compliance, and potentially a requirement to have a local contact person available 24/7 for emergencies, though you should verify current regulations directly with the borough as requirements may have been updated since 2024.

Short-term rentals (STRs) in Eatontown, New Jersey operate in a legal gray area as the borough has not enacted specific comprehensive regulations governing platforms like Airbnb and VRBO as of 2023. While not explicitly prohibited, STR operators must comply with existing zoning ordinances that typically restrict commercial activities in residential zones, and properties must meet health and safety codes, obtain proper business licenses, and pay applicable taxes including the state's 6.625% sales tax and local occupancy taxes. The borough's zoning code generally limits residential properties to long-term residential use, which could potentially conflict with frequent short-term rental activity, and operators may face enforcement action if neighbors complain about noise, parking, or other nuisances. Recent trends in New Jersey municipalities show increasing regulation of STRs, with some towns requiring special permits, limiting the number of rental days per year, or restricting STRs in certain residential districts, though Eatontown has not yet followed suit with specific STR legislation, leaving operators to navigate existing municipal codes and state regulations.

The best areas for Airbnb investment in Eatontown, New Jersey are the neighborhoods near Fort Monmouth and the Monmouth Park area, the residential districts close to Route 35 and Highway 18 corridors, and properties within walking distance of the NJ Transit train station. The Fort Monmouth vicinity attracts business travelers and contractors working on the ongoing redevelopment projects at the former military base, while the Monmouth Park area benefits from seasonal horse racing events and gambling tourism from April through October. The Route 35/Highway 18 corridor areas are ideal due to proximity to major shopping centers like Monmouth Mall and easy access to both New York City commuters and visitors to nearby Asbury Park and the Jersey Shore beaches. Properties near the train station capture demand from business travelers needing quick access to Manhattan and tourists using public transit to explore the region, while the established residential neighborhoods between Newman Springs Road and Route 36 offer quiet, family-friendly accommodations for longer stays and relocating professionals working at nearby corporate offices and the expanding Fort Monmouth technology hub.

In Eatontown, New Jersey, Airbnb hosts are subject to New Jersey's 6.625% state sales tax on lodging accommodations, which applies to rentals of less than 90 consecutive days. Additionally, hosts must collect and remit the state's 5% occupancy tax that funds tourism promotion activities. Monmouth County may impose an additional local occupancy tax of approximately 3%, though this varies by municipality and Eatontown's specific rate may differ. These taxes are typically collected from guests at the time of booking and must be remitted to the New Jersey Division of Taxation on a monthly or quarterly basis depending on the volume of transactions, with hosts required to register for a tax permit before beginning operations. Airbnb may collect and remit these taxes automatically in some cases through their platform, but hosts remain ultimately responsible for compliance. Exemptions generally apply to rentals exceeding 90 consecutive days to the same guest, certain government employees on official business, and stays by permanent residents, though documentation is required to substantiate exempt transactions.

To start an Airbnb in Eatontown, New Jersey, expect total costs around $485,000-$520,000. Property purchase represents the largest expense at approximately $400,000-$425,000 based on median home prices in Monmouth County. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom setup including furniture, appliances, linens, and décor from retailers like IKEA, Wayfair, and local suppliers. Initial setup costs including professional photography, listing creation, and marketing materials run $2,000-$3,000. Permits and fees vary but budget $1,500-$2,500 for business registration, short-term rental permits, and potential township licensing requirements. Insurance premiums for short-term rental coverage average $2,500-$4,000 annually, with companies like Proper Insurance and CBIZ offering specialized Airbnb policies. Utility setup and deposits for electricity, gas, water, internet, and cable total approximately $1,000-$1,500. First six months operating costs including utilities ($1,200), cleaning services ($2,400), supplies and maintenance ($1,500), platform fees to Airbnb ($3,000 estimated), and marketing ($800) total around $8,900. Additional considerations include property taxes averaging $12,000-$15,000 annually and potential HOA fees if applicable, though these ongoing costs extend beyond the initial startup investment.

Airbnb properties in Eatontown, New Jersey typically generate annual revenues between $18,000-$35,000 for entire home listings, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$80 per turnover), property management (15-25% of revenue), utilities ($150-$300 monthly), insurance ($1,200-$2,000 annually), and maintenance costs averaging $2,000-$4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving higher margins through strategic pricing during peak summer months when proximity to Jersey Shore beaches drives demand up 40-60%. Properties within 2 miles of Fort Monmouth or near major highways like Route 35 and Garden State Parkway command premium rates due to business traveler demand. A typical 3-bedroom home purchased for $400,000 in 2022 with a $2,800 monthly mortgage can generate $2,500-$3,200 monthly gross revenue during peak season (May-September) and $1,800-$2,400 during off-season, resulting in annual net profits of $8,000-$15,000 after all expenses. Success factors include professional photography, rapid guest communication, maintaining 4.8+ star ratings, and leveraging Eatontown's strategic location between New York City (45 minutes) and Atlantic City beaches, with the most profitable properties being those that cater to both business travelers and weekend leisure guests.

Airbnb investments in Eatontown, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, primarily driven by the area's proximity to the Jersey Shore and Fort Monmouth redevelopment attracting both leisure and business travelers. Properties within 2-3 miles of the beach command premium rates of $150-250 per night during peak summer months (June-August), while shoulder seasons maintain $80-120 nightly rates, resulting in average annual revenues of $35,000-55,000 for well-positioned 2-3 bedroom properties. Initial profitability typically occurs within 18-24 months, with properties purchased in the $300,000-450,000 range requiring $60,000-90,000 down payments and generating monthly cash flows of $800-1,500 after expenses including property management (10-15%), cleaning fees, utilities, and maintenance. The market benefits from year-round demand due to corporate housing needs from nearby tech companies and defense contractors, with occupancy rates averaging 65-75% annually, though investors should factor in New Jersey's higher property taxes averaging 2.5-3% of property value and potential municipal short-term rental regulations that may impact future operations.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking in Eatontown, New Jersey. Local real estate agents like those at Keller Williams Shore Properties and Coldwell Banker Residential Brokerage have experience with investment properties in the Monmouth County area and understand Airbnb regulations. National services include Mashvisor, which provides rental property analytics and market data, AirDNA for short-term rental market insights, and Awning for turnkey Airbnb investment opportunities. Regional companies like Jersey Shore Real Estate Partners and Monmouth County Investment Properties focus on rental property acquisitions in the area. Additional services include BiggerPockets for investor networking and education, Roofstock for online real estate investing, and local property management companies like Shore Property Management and Coastal Rental Management that can help maximize Airbnb returns in Eatontown's proximity to beaches and Fort Monmouth redevelopment areas.