Is Kearny, New Jersey Good for Airbnb Investment?

To start an Airbnb in Kearny, New Jersey, begin by researching local zoning laws and regulations through the Kearny Planning and Zoning Department, as the town may require special permits or have restrictions on short-term rentals in residential areas. Contact Kearny's municipal offices at 402 Kearny Avenue to inquire about business licenses, occupancy permits, and any specific short-term rental ordinances that may have been enacted since 2020-2022 when many New Jersey municipalities began regulating Airbnb properties. Obtain necessary permits including a Certificate of Occupancy, business registration with the State of New Jersey, and ensure compliance with fire safety codes through the Kearny Fire Department. Find a suitable property by focusing on areas near transportation hubs like the PATH train stations or properties with easy access to Newark and New York City, considering Kearny's average home prices of $300,000-$500,000 as of recent years. Furnish the property with essential amenities including WiFi, basic kitchen supplies, linens, and safety equipment like smoke detectors and carbon monoxide alarms as required by New Jersey state law. Create your Airbnb listing with competitive pricing based on nearby markets in Jersey City and Newark, typically ranging $75-150 per night depending on property size and location. Manage the property by establishing cleaning protocols, guest communication systems, and consider hiring local property management companies like RedAwning or Vacasa if you prefer hands-off management, while maintaining compliance with New Jersey's 6.625% sales tax requirements for short-term rentals.

To identify profitable short-term rental properties in Kearny, New Jersey, focus on locations within walking distance of PATH train stations connecting to Manhattan, particularly near Kearny Station and Harrison PATH stops, as business travelers and tourists prefer easy NYC access. Target 2-3 bedroom properties built after 1950 with parking spaces, updated kitchens, and reliable WiFi infrastructure, as corporate housing demand is strong in this area due to proximity to pharmaceutical companies like Merck and financial firms in nearby Jersey City. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties in Harrison, Newark, and Jersey City, aiming for nightly rates between $80-150 depending on size and amenities. Research competition by monitoring active Airbnb and VRBO listings within a 2-mile radius, noting occupancy rates and guest reviews to identify service gaps. Utilize tools like Rabbu for market analysis, STR Helper for performance tracking, and connect with local real estate agents familiar with Kearny's zoning laws, as some areas may have restrictions on short-term rentals that could impact profitability.

To obtain an Airbnb/STR permit in Kearny, New Jersey, you must first contact the Kearny Building Department at Town Hall located at 402 Kearny Avenue to inquire about short-term rental licensing requirements, as the town likely requires a Certificate of Occupancy inspection and business registration. You'll need to submit an application form along with required documents including proof of property ownership or lease agreement, Certificate of Insurance with minimum $1 million liability coverage naming the town as additional insured, floor plans of the rental unit, contact information for a local property manager if you're not local, and payment of estimated fees ranging from $150-300 for initial permits plus annual renewal fees of approximately $100-200. The process typically takes 4-6 weeks and requires scheduling a fire safety and building code inspection with the Fire Prevention Bureau and Building Department. Kearny specifically requires STR operators to maintain a guest registry, limit occupancy to posted maximums, provide smoke and carbon monoxide detectors in all sleeping areas, ensure adequate parking without impacting neighbors, and comply with noise ordinances with quiet hours typically from 10 PM to 8 AM. You must also register with the New Jersey Division of Taxation for sales tax collection and remit the state's 6.625% sales tax plus any local occupancy taxes, and maintain all permits in good standing with annual renewals required by December 31st each year.

Short-term rentals (STRs) in Kearny, New Jersey operate in a legal gray area as the town 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 standard rental housing codes and safety requirements. The town requires rental properties to be registered and inspected, and operators must obtain proper business licenses and pay applicable taxes. Kearny's proximity to New York City has created demand for short-term accommodations, but the lack of specific STR regulations means enforcement relies on existing housing and zoning codes, with potential violations addressed through code enforcement rather than STR-specific penalties. Recent discussions at the municipal level have considered implementing clearer guidelines, but no major legislative changes have been enacted, leaving operators to navigate compliance through traditional rental and business licensing requirements while monitoring potential future regulatory developments.

The best areas for Airbnb investment in Kearny, New Jersey include the Kearny Point waterfront district, which offers proximity to Manhattan with stunning skyline views and attracts business travelers working at the redeveloped industrial complex that houses companies like Tesla and Amazon logistics facilities. The West Kearny residential area near the PATH train stations is highly attractive due to its direct 15-minute connection to Manhattan, making it ideal for tourists and business travelers seeking affordable alternatives to expensive NYC hotels. The Arlington neighborhood benefits from its proximity to Newark Liberty International Airport (10 minutes away) and attracts airline crews, business travelers, and tourists needing convenient airport access. The Schuyler Avenue corridor is appealing for its walkability to local restaurants, shops, and the Passaic River waterfront parks, drawing visitors interested in outdoor activities and local culture. The area near Kearny High School and municipal buildings attracts families visiting for school events, sports tournaments, and local government business, while the proximity to MetLife Stadium (20 minutes) makes these neighborhoods popular during Giants and Jets games, concerts, and major events.

In Kearny, New Jersey, Airbnb hosts are subject to New Jersey's state sales tax of 6.625% on short-term rental accommodations, which applies to stays of less than 90 consecutive days. Additionally, hosts must collect the state occupancy tax of 5% on rental charges. Hudson County, where Kearny is located, may impose an additional county occupancy tax of approximately 3%, bringing the total tax burden to around 14.625%. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system for participating jurisdictions, though hosts remain ultimately responsible for ensuring proper remittance to the New Jersey Division of Taxation on a quarterly basis using Form ST-50. Hosts must register for a New Jersey tax identification number and file returns even if Airbnb collects taxes on their behalf. Exemptions may apply for rentals to permanent residents or stays exceeding 90 days, and certain nonprofit or government-related bookings may qualify for tax exemptions with proper documentation.

To start an Airbnb in Kearny, New Jersey, the total costs would be approximately $485,000-$535,000. Property purchase represents the largest expense at $400,000-$450,000 based on median home prices in the area. Furnishing costs typically range $15,000-$25,000 for a complete setup including furniture, appliances, linens, and decor. Initial setup costs including professional photography, listing creation, and basic renovations average $3,000-$5,000. Permits and fees in New Jersey including business registration, short-term rental permits, and local licensing total approximately $500-$1,500. Insurance costs for short-term rental coverage run $2,000-$3,000 annually. Utilities setup and deposits for electricity, gas, water, internet, and cable average $500-$800. First six months operating costs including utilities ($1,200), cleaning supplies ($300), maintenance reserves ($1,000), marketing ($500), and platform fees on estimated bookings ($2,000) total approximately $5,000. Additional considerations include potential HOA fees, property taxes, and emergency repair funds which could add another $8,000-$12,000 to the initial investment depending on the specific property and location within Kearny.

Airbnb properties in Kearny, 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 proximity to NYC transportation hubs. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($40-80 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,500 annually), and maintenance costs ($2,000-4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved by hosts who self-manage and maintain high occupancy rates of 60-75%. Success factors in Kearny include proximity to PATH train stations connecting to Manhattan, competitive pricing below Newark and Jersey City rates, professional photography, rapid guest communication, and maintaining superhost status. Properties within walking distance of Kearny's PATH station command premium rates and achieve occupancy rates 15-20% higher than those requiring car transportation. A typical 2-bedroom property generating $28,000 annually might net $6,000-$9,000 in profit after expenses, representing a 21-32% profit margin, though performance varies significantly based on property condition, host responsiveness, and seasonal demand fluctuations driven by NYC business travel and tourism patterns.

Airbnb investments in Kearny, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on the area's proximity to New York City and moderate property values averaging $350,000-$450,000. Properties generally achieve profitability within 18-24 months, with average daily rates of $85-$120 and occupancy rates of 65-75% annually. The market benefits from business travelers and tourists visiting nearby Newark and Manhattan, with monthly gross rental yields averaging $2,800-$4,200 for 2-3 bedroom properties. Initial investment recovery typically occurs within 10-12 years, while cash flow positive operations usually begin within 6-8 months after accounting for startup costs, furnishing, and local regulations. Properties within walking distance of NJ Transit stations command premium rates and achieve the higher end of these ROI ranges due to increased demand from commuters and short-term visitors.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Kearny, New Jersey, offering market analysis and property recommendations. Local real estate agents specializing in investment properties include Keller Williams Realty agents in nearby Newark and Jersey City who focus on Airbnb investments, as well as RE/MAX agents in Hudson County who understand the short-term rental market. Century 21 offices in the area also have agents experienced with investment properties. National services include Mashvisor, which provides Airbnb analytics and property search tools for the Kearny market, AirDNA for market data and revenue projections, and Awning which offers end-to-end Airbnb investment services including property acquisition. RedAwning and Vacasa also provide investment property identification services in the New Jersey market. Local property management companies like Hudson County Property Management and North Jersey Vacation Rentals can assist with both finding properties and managing them post-purchase. Real estate investment firms such as Roofstock and Fundrise have expanded into the New Jersey market around 2020-2022, offering turnkey Airbnb investment opportunities in the greater New York metropolitan area including Kearny.