Is Hackensack, New Jersey Good for Airbnb Investment?

To start an Airbnb in Hackensack, New Jersey, begin by researching local zoning laws and regulations through the Hackensack Planning and Zoning Department, as the city requires short-term rental operators to obtain a business license and comply with residential zoning restrictions that may limit rentals to primary residences only. Contact Hackensack City Hall at 65 Central Avenue to apply for necessary permits including a Certificate of Occupancy for short-term rentals, business registration, and ensure compliance with fire safety codes which typically require smoke detectors, carbon monoxide detectors, and fire extinguishers. Find a suitable property in residential zones like the area near Hackensack River or near Route 4 corridor, ensuring it meets the city's requirement for adequate parking and doesn't violate HOA restrictions. Furnish the space with quality basics including comfortable bedding, kitchen essentials, WiFi, and local amenities information, while ensuring compliance with Bergen County health department standards for cleanliness and safety. Create your Airbnb listing with professional photos highlighting proximity to New York City (15 minutes by bus), MetLife Stadium, and local attractions like Hackensack River County Park. For ongoing management, establish relationships with local cleaning services, maintain 24/7 guest communication, implement keyless entry systems, and stay current with Hackensack's evolving short-term rental ordinances which may require annual renewals and neighbor notification procedures, while collecting and remitting New Jersey's 6.625% sales tax plus Bergen County's additional hotel tax to the state Division of Taxation.

To identify profitable short-term rental properties in Hackensack, New Jersey, focus on locations within walking distance of major employers like Hackensack University Medical Center and close to NYC transportation hubs such as the Anderson Street NJ Transit station, as business travelers comprise a significant portion of demand in this market. Target 2-3 bedroom properties built after 1980 with modern amenities, parking spaces, and updated kitchens, as these features command premium rates of $120-180 per night compared to older units averaging $80-120. Conduct pricing analysis using AirDNA and Mashvisor to identify properties where potential STR revenue exceeds long-term rental income by at least 40%, typically requiring purchase prices under $400,000 for optimal ROI in Hackensack's market. Research competition by analyzing existing Airbnb and VRBO listings within a 1-mile radius, identifying gaps in amenities or pricing strategies, particularly targeting the underserved corporate housing segment near medical facilities and the Hackensack River waterfront area. Utilize tools like Rabbu, STR Helper, and local MLS data through Realtor.com, while consulting Bergen County zoning regulations and Hackensack's municipal codes regarding short-term rentals, and consider partnering with local property management companies like RedAwning or Awning who specialize in the North Jersey STR market.

To obtain an Airbnb/STR permit in Hackensack, New Jersey, you must first apply through the City of Hackensack's Building Department located at 65 Central Avenue, as the city requires short-term rental operators to obtain a Certificate of Occupancy and business license. Required documents include a completed application form, proof of property ownership or lease agreement, floor plans, certificate of insurance with minimum $1 million liability coverage, fire safety inspection certificate, and a notarized affidavit from neighbors within 200 feet acknowledging the short-term rental use. The application fee is approximately $150 for the initial permit plus $75 for the annual renewal, with additional inspection fees of around $100. The timeline typically takes 4-6 weeks for processing once all documents are submitted and inspections are completed. Hackensack-specific requirements include limiting occupancy to no more than 2 guests per bedroom plus 2 additional guests, maintaining a 24-hour contact person available to address any issues, providing adequate parking spaces (minimum 1 space per rental unit), ensuring compliance with the city's noise ordinance, and registering with the New Jersey Division of Taxation for hotel/motel tax collection. Properties must also pass fire safety inspections and meet all zoning requirements, with some residential zones potentially restricting short-term rentals entirely.

Short-term rentals (STRs) in Hackensack, New Jersey operate in a complex legal environment as the city has not established comprehensive STR-specific regulations as of 2023. While not explicitly prohibited, STRs must comply with existing zoning ordinances that typically restrict commercial activities in residential zones, effectively limiting most short-term rental operations in single-family residential areas. The city's zoning code generally permits transient accommodations only in commercial and mixed-use districts, making many residential STRs potentially non-compliant. Property owners must also adhere to state regulations including tax collection requirements and safety standards, while ensuring compliance with homeowners association rules and lease agreements that may prohibit short-term rentals. Recent trends in New Jersey municipalities show increasing regulation of STRs, and Hackensack may develop specific ordinances in the future to address registration, licensing, occupancy limits, and operational standards, similar to neighboring communities that have implemented STR frameworks in response to growing concerns about housing availability and neighborhood impacts.

The best areas for Airbnb investment in Hackensack, New Jersey include the Main Street Historic District, which attracts visitors interested in the city's colonial history and proximity to antique shops and restaurants, and the areas near Hackensack University Medical Center, which generate consistent demand from medical professionals, patients' families, and healthcare-related business travelers. The neighborhoods around Bergen County Courthouse draw legal professionals and court visitors, while properties near the Hackensack River waterfront appeal to leisure travelers seeking scenic views and recreational activities. The residential areas close to Route 4 and Interstate 80 are attractive due to easy access to New York City (approximately 12 miles away), making them ideal for business travelers and tourists who want affordable accommodation while visiting Manhattan. Additionally, the vicinity around Fairleigh Dickinson University's campus creates demand from visiting academics, prospective students, and families during university events, while the areas near major shopping centers like The Shops at Riverside attract visitors during peak retail seasons and holiday shopping periods.

In Hackensack, New Jersey, Airbnb hosts are subject to multiple lodging taxes including the state's 6.625% sales tax on transient accommodations and Bergen County's 5% hotel/motel occupancy tax, totaling approximately 11.625% in combined taxes on short-term rental bookings. The New Jersey Division of Taxation requires hosts to register for a Certificate of Authority and collect state sales tax on all bookings under 90 days, with quarterly remittance due by the 20th of the month following each quarter (April 20, July 20, October 20, and January 20). Bergen County's occupancy tax must be collected separately and remitted monthly to the county tax administrator by the 20th of the following month, with hosts required to obtain a county tax registration certificate. Airbnb may collect and remit these taxes automatically for hosts who opt into their tax collection service, which began around 2018-2019 for New Jersey properties, though hosts remain ultimately responsible for compliance. Exemptions typically apply to stays of 90 days or longer, which are considered long-term rentals rather than transient accommodations, and some exemptions may exist for certain government employees or tax-exempt organizations, though documentation is required to claim such exemptions.

To start an Airbnb in Hackensack, New Jersey, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$600,000 based on median home prices in the area as of 2023-2024. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run $1,500-$3,000. Permits and fees vary but budget $500-$1,500 for business registration, short-term rental permits, and potential homeowner association approvals. Insurance costs increase significantly for short-term rentals, expect $3,000-$5,000 annually compared to standard homeowner's insurance. Monthly utilities including electricity, gas, water, internet, and cable average $300-$500 depending on property size and season. First six months operating costs including utilities ($1,800-$3,000), cleaning services between guests ($2,400-$4,800 assuming bi-weekly turnover), maintenance and supplies ($1,200-$2,000), platform fees to Airbnb and VRBO (3% of bookings, estimated $3,000-$6,000), and property management if outsourced ($4,000-$8,000) total approximately $12,400-$23,800.

Airbnb properties in Hackensack, New Jersey typically generate annual revenues between $18,000-$35,000 for entire home listings, with average daily rates ranging from $85-$140 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (10-20% of revenue), utilities ($150-250 monthly), insurance ($800-1,200 annually), and maintenance costs averaging $2,000-4,000 yearly. Successful properties in desirable neighborhoods near the Hackensack River or with easy NYC transit access achieve occupancy rates of 65-75%, resulting in net profit margins of 15-25% after expenses. Properties within walking distance of Hackensack University Medical Center or featuring modern amenities like parking, WiFi, and updated kitchens command premium rates and higher occupancy. A typical 2-bedroom property generating $28,000 annually might incur $16,000 in total expenses (including mortgage interest, taxes, utilities, cleaning, and maintenance), yielding approximately $12,000 in net profit or a 43% profit margin, though success heavily depends on property condition, location proximity to transportation hubs, and host responsiveness to guest needs.

Airbnb investments in Hackensack, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in desirable neighborhoods near the Hackensack River or close to NYC transportation hubs can achieve higher returns of 12-15% annually. The average timeframe to profitability is 18-24 months, considering initial setup costs, furnishing expenses, and market penetration. Short-term rental properties in Hackensack benefit from proximity to Manhattan (20 miles), with average daily rates of $85-120 and occupancy rates of 65-75% throughout the year. Cash-on-cash returns are optimized when investors purchase properties in the $300,000-450,000 range with 20-25% down payments, generating monthly gross revenues of $2,200-3,500 after accounting for Airbnb fees, cleaning costs, utilities, and property management expenses of approximately 35-40% of gross income.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Hackensack, New Jersey. Local real estate agents like those at Keller Williams Realty in Bergen County and Coldwell Banker Residential Brokerage have developed expertise in investment properties suitable for Airbnb conversions in the Hackensack area since around 2018. National services including Mashvisor, BiggerPockets, and AirDNA provide market analysis and property identification tools specifically for short-term rental investments in New Jersey markets. Regional companies such as New Jersey Real Estate Network and Garden State MLS offer specialized investor services, while platforms like Roofstock and HomeUnion have expanded their short-term rental investment offerings to include Bergen County properties since 2019. Local investment groups including North Jersey Real Estate Investors Association provide networking and deal flow opportunities, and specialized consultants like STR Wealth and AirbnbAutomated offer turnkey services for property acquisition and management setup in the Hackensack market.