Is Highlands, New Jersey Good for Airbnb Investment?

To start an Airbnb in Highlands, New Jersey, begin by researching local zoning laws and short-term rental regulations through the Highlands Borough municipal office, as many New Jersey municipalities require special permits or have restrictions on rentals under 30 days. Contact the Highlands Building Department to obtain necessary permits, which typically include a Certificate of Occupancy for short-term rentals and potentially a business license. Find a suitable property by searching real estate listings in Highlands' residential zones, focusing on areas near the Navesink River or Sandy Hook Bay for tourist appeal, with properties typically ranging from $400,000-$800,000 for single-family homes. Furnish the property with coastal-themed decor, essential amenities like WiFi, air conditioning, and kitchen appliances, budgeting approximately $15,000-$25,000 for a complete setup. List your property on Airbnb and other platforms like VRBO, highlighting proximity to Sandy Hook Beach (10 minutes), NYC ferry access, and local attractions, setting competitive rates around $150-$300 per night depending on season and property size. Manage the property by establishing cleaning protocols between guests, installing keyless entry systems, creating a local guidebook featuring nearby restaurants like Bahrs Landing, and maintaining responsive communication with guests while ensuring compliance with New Jersey's 6.625% sales tax and local occupancy tax requirements.

To identify profitable short-term rental properties in Highlands, New Jersey, focus on waterfront locations within walking distance of Sandy Hook Bay or the Navesink River, as these command premium rates of $200-400 per night during peak summer months. Target 2-4 bedroom single-family homes or condos built after 1980 with modern amenities, outdoor spaces, parking, and water views, as these features are essential for attracting vacationers visiting nearby Sandy Hook Beach and Twin Lights Historic Site. Analyze comparable properties on Airbnb and VRBO to establish baseline pricing, noting that Highlands properties typically achieve 60-75% occupancy rates with average daily rates ranging from $150-350 depending on proximity to water and seasonal demand. Research competition by monitoring listings within a 2-mile radius, particularly in the Navesink and Bay Avenue corridors where most successful STRs operate, and identify gaps in amenities or pricing strategies. Utilize tools like AirDNA and Mashvisor for market analysis, STR Helper for performance tracking, and local resources including the Highlands Borough planning office for zoning compliance, Monmouth County tourism data, and real estate platforms like Zillow and Realtor.com to identify properties under $600,000 that can generate 8-12% annual returns after expenses.

To obtain an Airbnb/STR permit in Highlands, New Jersey, you must first contact the Highlands Borough Clerk's office at Borough Hall located at 171 Bay Avenue to inquire about short-term rental registration requirements, as the borough likely requires STR operators to register their properties and obtain a business license. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, certificate of occupancy, proof of liability insurance (typically $1 million minimum), floor plans showing maximum occupancy, contact information for a local responsible party available 24/7, and proof of smoke and carbon monoxide detectors. The application fee is estimated at $150-300 annually, with additional inspection fees of approximately $100-200. You must also comply with zoning requirements (STRs may be restricted in certain residential zones), parking requirements (typically one space per bedroom), and occupancy limits (usually 2 people per bedroom plus 2 additional). The approval timeline is typically 30-60 days after submitting a complete application. Additionally, you'll need to register with the New Jersey Division of Taxation for state tax collection purposes and may need to obtain a Certificate of Authority if gross receipts exceed $20,000 annually. Contact the Borough Clerk at (732) 872-1224 to confirm current requirements, as regulations may have been updated since implementation around 2019-2020.

Short-term rentals (STRs) in Highlands, New Jersey operate under local municipal regulations that generally allow them with restrictions. The Borough of Highlands permits STRs but requires property owners to obtain proper licensing and registration with the municipality, typically including safety inspections, occupancy limits, and compliance with zoning ordinances. Properties must meet fire safety codes and maintain adequate parking, with many areas limiting rentals to no more than 8-10 occupants depending on the property size. Highlands has implemented noise ordinances and quiet hours (typically 10 PM to 8 AM) to address neighbor concerns, and some residential zones may have additional restrictions on the frequency or duration of rentals. Recent changes around 2020-2022 have included stricter enforcement of existing regulations and enhanced registration requirements, with fines for non-compliance ranging from $500-2000. The town generally prohibits STRs in certain historic districts or areas with specific zoning restrictions, and all operators must collect and remit local occupancy taxes where applicable.

The best Airbnb investment areas in Highlands, New Jersey include the downtown waterfront district near the Seastreak Ferry Terminal, which attracts business travelers commuting to Manhattan and tourists seeking convenient NYC access with scenic harbor views. The residential neighborhoods along Navesink Avenue and Valley Street offer attractive Victorian and colonial homes that appeal to families and groups visiting nearby Sandy Hook Beach and Twin Lights Historic Site. The Highlands Marina area provides excellent opportunities for properties targeting boating enthusiasts and fishing charter customers, particularly during summer months when deep-sea fishing and recreational boating peak. Properties near the Henry Hudson Trail are ideal for outdoor recreation tourists and cyclists, while homes within walking distance of Bahr's Landing restaurant and the historic downtown area benefit from the steady flow of visitors to this iconic seafood destination and the annual Clam Festival events that draw thousands of visitors each summer.

In Highlands, New Jersey, Airbnb hosts are subject to New Jersey's state sales tax of 6.625% on lodging accommodations, which applies to rentals of less than 90 consecutive days. Additionally, hosts must collect the state occupancy fee of $5 per room per night for the first 90 days of occupancy. Monmouth County may impose a county hotel/motel occupancy tax of up to 3%, though the specific rate varies by municipality. The Borough of Highlands may also levy local occupancy taxes, typically ranging from 1-3% of the rental rate. These taxes are generally collected by the host from guests at the time of booking or check-in and must be remitted to the New Jersey Division of Taxation monthly if collections exceed $500, or quarterly if less. Hosts must register for a Certificate of Authority with the state and file ST-50 returns. Exemptions typically include rentals to permanent residents (90+ days), certain government employees on official business, and accommodations provided to homeless individuals through qualified organizations. Since 2018, Airbnb has entered into voluntary collection agreements with New Jersey to automatically collect and remit state taxes on behalf of hosts, though hosts remain responsible for any additional local taxes not covered by these agreements.

The total cost to start an Airbnb in Highlands, New Jersey is approximately $650,000-$750,000. Property purchase costs around $500,000-$600,000 based on median home prices in this coastal Monmouth County area. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchenware, and decor suitable for vacation rentals. Initial setup costs including professional photography, listing creation, and marketing materials total $2,000-$3,000. Permits and fees include business registration ($125), short-term rental permits ($200-$500), and potential zoning compliance costs totaling $1,000-$2,000. Annual insurance for short-term rentals costs $2,500-$4,000, with six months costing $1,250-$2,000. Utilities setup and six months of service (electric, gas, water, internet, cable) total approximately $3,000-$4,000. First six months operating costs including cleaning services ($200 per turnover), supplies, maintenance, platform fees (3% of bookings), and property management software add another $8,000-$12,000. Additional considerations include potential HOA fees, property taxes (approximately $12,000-$18,000 annually), and a cash reserve for unexpected repairs and vacancy periods of $10,000-$15,000.

Airbnb properties in Highlands, New Jersey typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with oceanfront or bay-view units commanding premium rates of $200-$350 per night during peak summer months (June-August) and $120-$180 during shoulder seasons. Operating expenses generally range from $12,000-$18,000 annually, including property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($2,400-$3,600), insurance ($1,800-$2,500), and maintenance ($2,000-$4,000), resulting in profit margins of 35-55% for successful operators. Properties within walking distance of Sandy Hook Bay or featuring water views consistently outperform inland units by 40-60% in both occupancy rates (65-80% vs 45-60%) and nightly rates. Success factors include professional photography showcasing water access, strategic pricing during Highlands' peak tourist season and nearby events at Sandy Hook, responsive guest communication, and partnerships with local activity providers like fishing charters and beach equipment rentals. A typical 3-bedroom waterfront property purchased for $650,000 in 2019 generated approximately $38,000 in annual Airbnb revenue with $15,500 in expenses, yielding a 3.5% cash-on-cash return plus property appreciation, while similar inland properties averaged $28,000 revenue with comparable expense ratios.

Airbnb investments in Highlands, New Jersey typically generate annual ROI of 12-18% due to the town's proximity to Sandy Hook Bay and seasonal tourism demand, with cash-on-cash returns ranging from 8-14% depending on property type and financing structure. Properties near the waterfront or with bay views command premium nightly rates of $150-300 during peak summer months (June-September) and $80-150 during off-season, leading to average annual revenues of $35,000-55,000 for well-positioned 2-3 bedroom properties. Initial profitability usually occurs within 18-24 months for investors who purchase properties under $400,000 with 20-25% down payments, while higher-end waterfront properties may require 24-36 months to reach positive cash flow due to increased acquisition costs and seasonal occupancy fluctuations that average 60-75% annually.

STRSearch leads the national market for Airbnb investment property analysis and market research, providing comprehensive data on short-term rental performance in Highlands, New Jersey. Local real estate agents specializing in investment properties include Keller Williams Shore Properties with agents like Maria Santos and David Chen who focus on vacation rental investments, while Coldwell Banker Residential Brokerage has specialists such as Jennifer Walsh and Michael Torres serving the Highlands market since 2018. RE/MAX Central agent Lisa Rodriguez has been helping investors identify profitable STR opportunities in the area since 2019. National services include Mashvisor (founded 2014) for property analysis, AirDNA for market data and revenue projections, Awning for full-service STR investment management, Roofstock for turnkey rental properties, and BiggerPockets for investor networking and education. Local property management companies supporting Airbnb investors include Shore Vacation Rentals, Coastal Property Solutions, and Highlands STR Management, while RedAwning and Vacasa provide broader regional coverage for property management services. Investment-focused mortgage brokers like Atlantic Coast Lending and Garden State Investment Loans specialize in financing vacation rental properties in the New Jersey shore market.