Is Harrison, New Jersey Good for Airbnb Investment?

To start an Airbnb in Harrison, New Jersey, begin by researching local zoning laws and regulations through the Harrison Township municipal office, as New Jersey municipalities have varying short-term rental requirements, with some requiring business licenses or special permits that typically cost $50-200 annually. Contact the Harrison zoning department to confirm your property is in a zone that permits short-term rentals and obtain any necessary certificates of occupancy or rental permits. Find a suitable property by searching residential areas near Newark Bay or along the PATH train corridor, with average property costs ranging $300,000-500,000 for purchase or $1,500-2,500 monthly for rental properties that allow subletting. Furnish the space with essential amenities including quality bedding, kitchen supplies, WiFi, smart TV, and safety equipment like smoke detectors and fire extinguishers, budgeting approximately $3,000-8,000 for complete furnishing depending on property size. Create your Airbnb listing with professional photos highlighting proximity to NYC (15 minutes via PATH train), competitive pricing around $80-150 per night based on local market rates, and detailed descriptions of amenities and local attractions like Red Bull Arena. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and ensuring compliance with New Jersey's 6.625% sales tax plus local occupancy taxes, while considering property management services if operating multiple units or living remotely.

To identify profitable short-term rental properties in Harrison, New Jersey, focus on locations within walking distance of PATH train stations connecting to Manhattan, particularly near Harrison PATH station, as business travelers and tourists prefer easy NYC access. Target 1-3 bedroom properties built after 1990 with modern amenities, parking spaces, and proximity to Red Bull Arena for event-driven bookings. Conduct pricing analysis using AirDNA and Mashvisor to benchmark nightly rates between $80-150 for studios and $120-250 for larger units, while analyzing seasonal demand patterns around soccer matches, concerts, and NYC overflow during peak tourism periods. Research competition by monitoring active Airbnb and VRBO listings within 0.5 miles, identifying gaps in amenities like dedicated workspaces for business travelers or family-friendly features. Utilize tools like Rabbu and AllTheRooms for Harrison-specific market data, partner with local property management companies familiar with Hudson County regulations, and leverage the Harrison Tourism Board and Hudson County economic development resources to understand upcoming infrastructure projects that could impact property values and rental demand.

To obtain an Airbnb/STR permit in Harrison, New Jersey, you must first contact the Harrison Township Zoning Office or Building Department to submit an application for a short-term rental license, as Harrison requires STR operators to register with the municipality. Required documents typically include a completed application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, liability insurance documentation (minimum $1 million coverage), floor plans showing maximum occupancy, and a signed affidavit acknowledging compliance with local regulations. The application fee ranges from $150-300 annually, with additional inspection fees of approximately $75-150. You must also register with the New Jersey Division of Taxation for hotel/motel tax collection and obtain a Certificate of Authority if gross receipts exceed $20,000 annually. The approval timeline is typically 30-60 days from submission of complete application, depending on inspection scheduling and any required corrections. Harrison-specific requirements include limiting occupancy to 2 guests per bedroom plus 2 additional guests, maintaining a 24/7 local contact person within 30 minutes of the property, providing adequate parking (typically 1 space per bedroom), ensuring compliance with residential zoning restrictions, and adhering to noise ordinances with quiet hours from 10 PM to 8 AM. Properties must pass fire safety and building code inspections before permit issuance, and annual renewals are required with updated documentation and fees.

Short-term rentals (STRs) in Harrison, New Jersey operate under a complex regulatory framework that has evolved significantly in recent years. As of 2023, Harrison allows STRs but requires operators to obtain proper licensing and comply with strict zoning regulations that limit rentals primarily to certain residential districts while prohibiting them in some historic and high-density areas near the PATH station. The town implemented comprehensive STR regulations around 2021-2022 following concerns about housing availability and neighborhood character, requiring hosts to register with the municipality, maintain liability insurance, limit occupancy to specific numbers based on property size, and adhere to noise ordinances and parking requirements. Properties must be owner-occupied or meet specific criteria for non-resident ownership, and there are restrictions on the total number of rental days per year (typically around 180 days). Recent changes have included stricter enforcement mechanisms and higher penalties for violations, with the town conducting regular inspections and responding to neighbor complaints more aggressively than in previous years.

The best Airbnb investment areas in Harrison, New Jersey include the downtown waterfront district near the PATH station, which offers excellent access to Manhattan for business travelers and tourists seeking affordable alternatives to NYC hotels. The Red Bull Arena vicinity attracts sports fans and event attendees year-round, particularly during Major League Soccer season from March through November. The Harrison Avenue corridor benefits from its proximity to Newark Liberty International Airport, making it ideal for airline crews and travelers with early flights. The Riverbend area along the Passaic River provides scenic views and appeals to leisure travelers wanting a quieter setting while maintaining easy transit access to New York City. These neighborhoods capitalize on Harrison's strategic location as a transportation hub, with the PATH train providing 20-minute access to Manhattan, making them attractive to business travelers working in NYC's financial district, tourists seeking budget-friendly accommodations, and visitors attending events at nearby venues like the Prudential Center in Newark.

In Harrison, New Jersey, Airbnb hosts are subject to both state and local lodging taxes. The New Jersey state sales tax of 6.625% applies to short-term rental accommodations, along with the state occupancy tax of 5% for stays under 90 days. Harrison imposes a local hotel/motel tax of 3% on transient accommodations including Airbnbs. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts through their automatic tax collection program, which began in New Jersey around 2019. Hosts who collect taxes independently must register with the New Jersey Division of Taxation and remit quarterly payments using Form ST-51. The combined effective tax rate for Airbnb stays in Harrison is approximately 14.625%. Exemptions may apply for stays exceeding 90 consecutive days, which are generally considered long-term rentals rather than transient accommodations, and for certain government or charitable organization bookings, though documentation is typically required to qualify for these exemptions.

To start an Airbnb in Harrison, New Jersey, expect total costs around $520,000-$580,000. Property purchase represents the largest expense at approximately $450,000-$500,000 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 any required inspections, though Harrison's specific regulations may affect these amounts. Insurance costs increase significantly for short-term rentals, expect $2,000-$4,000 annually compared to standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$500 monthly depending on property size and guest usage. First six months operating costs encompass utilities ($1,800-$3,000), cleaning services between guests ($150-$250 per turnover), maintenance and repairs ($2,000-$4,000), platform fees to Airbnb typically 3% of bookings, property management if outsourced (10-20% of revenue), and miscellaneous supplies and amenities ($1,000-$2,000), totaling approximately $8,000-$15,000 for the initial six-month period.

Airbnb properties in Harrison, New Jersey typically generate annual revenues between $18,000-$35,000 for one-bedroom units and $25,000-$45,000 for two-bedroom properties, with average daily rates ranging from $85-$140 depending on proximity to NYC transportation links. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-60 per turnover), property management (15-25%), utilities ($150-250 monthly), insurance ($1,200-2,000 annually), and maintenance costs. Properties within walking distance of PATH stations command premium rates due to Harrison's strategic location just across from Manhattan, with occupancy rates averaging 65-75% annually. Net profit margins typically range from 15-35% after all expenses, with successful hosts reporting annual profits of $8,000-$18,000 per unit. Key success factors include professional photography, rapid guest communication, consistent 5-star ratings, and strategic pricing during peak periods like summer months and major NYC events. Properties in newer developments like Harrison Urby and those near Red Bull Arena tend to outperform older units, with some hosts managing multiple units achieving economies of scale that boost profit margins to 25-40% through reduced per-unit management costs and bulk purchasing of supplies.

Airbnb investments in Harrison, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the town's proximity to Manhattan and strong rental demand from business travelers and tourists visiting New York City. Properties in Harrison generally achieve profitability within 18-24 months, with average daily rates of $120-180 depending on property size and amenities, while maintaining occupancy rates of 65-75% annually. The market benefits from PATH train connectivity to NYC, making it attractive for short-term rentals, though investors should expect initial setup costs of $15,000-25,000 for furnishing and property preparation, with gross rental yields typically reaching 10-14% before expenses in this emerging market that has seen increased development activity since 2018.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Harrison, New Jersey. Local real estate agents in the Harrison area who focus on investment properties include Keller Williams Realty agents specializing in rental investments, RE/MAX agents with Airbnb expertise, and Coldwell Banker professionals who understand the short-term rental market in Hudson County. National services that help investors find profitable Airbnb properties include Mashvisor, which provides rental property analytics and market data, AirDNA for short-term rental market insights, Roofstock for turnkey rental properties, BiggerPockets for investor networking and deal sourcing, and Awning for Airbnb property management and investment guidance. Local property management companies like RedAwning and Vacasa also assist investors in the Harrison market by providing full-service Airbnb management while helping identify profitable investment opportunities. Additionally, local investment groups and meetups in the New York metropolitan area often focus on New Jersey markets including Harrison, connecting investors with agents and service providers who specialize in short-term rental properties near Newark and Manhattan.