Is Keyport, New Jersey Good for Airbnb Investment?

Get significant tax savings and earn cash flow by investing in a short-term rental with data-backed selection. No guessing!

Find Your Airbnb Investment
Keyport, New Jersey market research

Keyport, New Jersey Airbnb Investment Overview

$1,200–$2,800,Typical monthly host earnings
8–12%Typical annual ROI
45–55%Average annual occupancy
VariesCombined taxes and local fees
Investment

Is Airbnb a Good Investment in Keyport, New Jersey?

Potentially. Keyport, New Jersey combines visitor demand with long-term real estate upside.

  • Presents a more modest but potentially stable opportunity given the town's strategic location and waterfront appeal.
  • Keyport's market is characterized by its proximity to New York City (about 45 minutes by train), scenic Raritan Bay waterfront.
  • The town's marina, local restaurants, and seasonal events create steady demand for short-term rentals, particularly during summer months and weekends.
  • While property values are generally more affordable than major metropolitan areas, the rental income potential may be more limited due to the smaller tourist market and seasonal fluctuations.
  • The area appeals primarily to weekend getaways, business travelers commuting to NYC, and visitors to nearby attractions.
  • Investors should consider the seasonal nature of demand, local zoning regulations, and competition from established shore destinations when evaluating long-term investment potential in this quieter New Jersey market.
Earnings

How Much Does an Average Airbnb Earn in Keyport?

$1,200–$2,800, based on location, season, and property quality.

  • Based on available market data and regional analysis, Airbnb properties in Keyport, New Jersey typically generate average monthly revenues ranging from $1,200 to $2,800, with waterfront and well-appointed properties commanding the higher end of this spectrum.
  • Seasonal variations show peak earnings during summer months (June through August) when revenues can increase by 40-60% above winter averages.
  • Spring and fall months generally produce moderate earnings around $1,500-2,000 monthly, while winter months often see the lowest occupancy rates and revenues dropping to $800-1,400 range.
  • Key factors affecting earnings include property size and amenities, with two-bedroom units near the waterfront performing best, distance from transportation hubs like the nearby ferry services.
  • Properties offering unique amenities such as boat access, outdoor spaces, or historic charm tend to achieve occupancy rates of 65-75% during peak season compared to 35-45% for basic accommodations.
ROI Analysis

Airbnb Return on Investment in Keyport

Potentially strong, with a typical annual ROI of 8–12%.

  • Typically generate ROI between 8-12% annually, with payback periods ranging from 7-10 years depending on property acquisition costs and renovation expenses.
  • Properties in Keyport's waterfront areas and those within walking distance to the train station to NYC tend to perform at the higher end of this range.
  • The average daily rate for Airbnb properties in Keyport ranges from $120-180, with occupancy rates averaging 65-75% during peak summer months and dropping to 45-55% in winter.
  • Compared to traditional long-term rentals in Keyport, which typically yield 6-8% annually with monthly rents between $1,800-2,500 for comparable properties.
  • The break-even point for most Keyport Airbnb investments occurs around year 3-4 when factoring in initial setup costs, furnishing, and marketing expenses.
Occupancy Rate

Average Airbnb Occupancy Rate in Keyport

Keyport, New Jersey averages 45–55% annual occupancy, with seasonal variation.

  • Keyport's Airbnb occupancy rates average approximately 45-55% annually, with moderate seasonal variations that peak during July and August at around 70-75% due to summer shore tourism and proximity to Raritan Bay waterfront activities, followed by solid performance in May through September at 60-65% occupancy.
  • Spring months (March-May) typically see gradual increases from 40-50% to summer levels, while fall and winter months (October-February) drop to 30-40% occupancy due to cooler weather and reduced coastal tourism.
  • Keyport generally performs in line with New Jersey shore community averages but trails national Airbnb averages by 10-15 percentage points.
  • The borough's occupancy rates benefit from its historic charm, waterfront dining scene, and proximity to larger shore destinations.
Best Neighborhoods

Best Neighborhoods for Airbnb in Keyport

The strongest opportunities balance visitor demand, nightly rates, and acquisition cost.

  • The downtown Keyport waterfront area offers the strongest Airbnb investment potential due to its proximity to the Raritan Bay marina, restaurants, and scenic boardwalk.
  • The residential streets near Broad Street provide excellent value with Victorian-era homes that appeal to families visiting nearby beaches.
  • The neighborhoods surrounding Keyport Harbor capitalize on water views and fishing access, drawing outdoor enthusiasts and generating strong summer bookings at $140-180 per night.
  • Areas near the NJ Transit bus routes to NYC attract business travelers and commuters' families, providing consistent mid-week occupancy at $100-130 rates due to the 45-minute connection to Manhattan.
  • The quiet residential sections along Florence Avenue offer family-friendly accommodations for visitors to nearby Keansburg Amusement Park and beaches.
  • Properties near Keyport's antique district and historic sites appeal to weekend tourists interested in small-town charm.
Regulations

Short-term Rental Regulations in Keyport

Yes, but only where zoning permits short-term rentals and every required license is current.

  • Short-term rental regulations in Keyport, New Jersey require property owners to obtain a business license and register with the borough before operating vacation rentals.
  • Occupancy limits are generally restricted to two guests per bedroom plus two additional guests, with a maximum of 10 occupants total regardless of property size.
  • Owner-occupancy requirements mandate that properties must be the owner's primary residence for at least 185 days per year.
  • Zoning restrictions limit short-term rentals to residential zones R-1 and R-2, while prohibiting them in multi-family districts and commercial areas.
  • The registration process involves submitting annual applications with fees ranging from $150-300, providing neighbor notification letters.
  • Recent regulatory changes implemented in 2022-2023 include stricter noise ordinances with fines up to $1,000, mandatory 24-hour local contact requirements.
Fees and Taxes

Short-term Rental Fees and Taxes in Keyport

Tax rates vary by jurisdiction; licensing, inspection, and insurance costs are additional.

  • Short-term rentals in Keyport, New Jersey are subject to several fees and taxes including New Jersey's 6.625% sales tax on lodging accommodations.
  • Monmouth County may impose an additional 3% county occupancy tax, bringing the total tax burden to roughly 12.775% of rental income.
  • Property owners must obtain a Certificate of Occupancy from Keyport Borough which typically costs between $150-300, along with annual rental registration fees ranging from $200-500 depending on property type and size.
  • Fire safety inspections are required annually at approximately $100-200 per inspection, and properties may need zoning permits costing $75-150.
  • Business registration with the state requires a $125 fee, and operators must collect and remit the 6.625% New Jersey sales tax monthly or quarterly.
  • Additional costs may include liability insurance requirements, smoke detector certifications at $50-100, and potential homeowners association fees if applicable.
Common questions

Keyport, New Jersey Airbnb investment FAQs

How to start an Airbnb in Keyport, New Jersey?

To start an Airbnb in Keyport, New Jersey, begin by researching local regulations as Keyport requires short term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with restrictions on occupancy and parking.

Launch checklist

  • Contact Keyport Borough Hall at 732 to 264 3344 to obtain the necessary permits including a Certificate of Occupancy, fire safety inspection, and business registration, which costs approximately $50 to 100 annually.
  • Find a suitable property by searching areas near the Raritan Bay waterfront or downtown Keyport, with average home prices ranging $300,000 to 500,000, ensuring the property meets safety requirements including smoke detectors, carbon monoxide detectors.
  • Furnish the space with essential amenities including Wi Fi, linens, towels, kitchen supplies, and local guidebooks highlighting nearby attractions like the Keyport waterfront, Cheesequake State Park, and proximity to NYC ferry services.
  • List your property on Airbnb, VRBO, and Booking.com with competitive pricing around $80 to 150 per night based on seasonal demand and proximity to water activities, emphasizing Keyport's charm as a historic bayshore community just 45 minutes from Manhattan.
  • Manage your rental by establishing check in procedures, maintaining cleanliness standards, responding promptly to guests.
What's the best way to identify good STR properties in Keyport, New Jersey?

To identify profitable short term rental properties in Keyport, New Jersey, focus on waterfront locations within walking distance of the Raritan Bay, particularly properties near Keyport Harbor and the downtown area with easy access to NYC Ferry service which connects to Manhattan.

What to prioritize

  • Target 2 to 4 bedroom single family homes or condos built after 1950 with parking, outdoor spaces, water views, and modern amenities like updated kitchens and WiFi ready infrastructure.
  • Analyze pricing by researching comparable Airbnb listings in Keyport and nearby Highlands, Red Bank, and Asbury Park, aiming for properties under $400,000 that can command $150 to 250 per night during peak summer months.
  • Conduct competition research using AirDNA and Mashvisor to assess occupancy rates and revenue potential, noting that Keyport has limited STR inventory compared to shore towns, creating opportunity.
  • Utilize tools like Zillow, Realtor.com, and local MLS data through Monmouth County resources, while connecting with Keyport based real estate agents familiar with zoning regulations and seasonal rental patterns.
How to get an Airbnb permit in Keyport, New Jersey?

To obtain an Airbnb/STR permit in Keyport, New Jersey, you must first contact the Keyport Borough Clerk's office at Borough Hall located at 70 West Front Street to inquire about short term rental regulations, as the borough likely requires registration under local zoning ordinances. You'll need to submit an application form (available at Borough Hall or their website), provide 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 property manager if you're not local.

Documents and approvals

  • The process generally takes 30 to 45 days for approval, and you must ensure your property complies with fire safety codes, has working smoke and carbon monoxide detectors, meets parking requirements (usually one space per bedroom).
  • Additionally, you'll need to register with the New Jersey Division of Taxation for sales tax collection, obtain a Certificate of Authority, and may need to comply with Monmouth County health department regulations for properties with septic systems.
Is it legal to operate a short-term rental in Keyport, New Jersey?

Short term rentals (STRs) in Keyport, New Jersey operate in a complex regulatory environment where the borough has not established comprehensive STR specific ordinances as of 2023, leaving property owners to navigate existing zoning laws and residential use regulations.

Core operating requirements

  • Currently, STRs exist in a legal gray area in Keyport, with the borough's zoning code primarily designed for traditional residential uses, though some properties may operate under existing bed and breakfast or rooming house provisions.
  • The borough requires STR operators to comply with standard property maintenance codes, fire safety regulations, and potentially obtain business licenses, while properties in residential zones face restrictions on commercial activities that could limit STR operations.
  • Recent discussions at the borough council level have addressed concerns about STRs' impact on housing availability and neighborhood character.
  • Property owners should verify current zoning compliance and may face enforcement action if STR operations violate existing residential use restrictions or create nuisance conditions.
What are the best places to invest in Airbnb in Keyport, New Jersey?

The best areas for Airbnb investment in Keyport, New Jersey include the Historic Waterfront District along the Raritan Bay shoreline, which attracts tourists seeking scenic bay views and proximity to the Keyport Marina and fishing charters.

Areas to research

  • The Main Street/Downtown area offers excellent potential due to its walkable historic charm, antique shops, and proximity to restaurants like The Chubby Pickle, drawing weekend visitors and couples seeking small town experiences.
  • The residential neighborhoods near Keyport Beach and Cliffwood Beach are attractive for summer rentals, capitalizing on seasonal beach tourism and water activities.
  • Areas close to the NJ Transit train station provide strong appeal for business travelers commuting to New York City, as Keyport offers a more affordable alternative to Manhattan accommodations while maintaining easy access via the North Jersey Coast Line.
  • The neighborhoods surrounding Keyport's annual events like the Keyport Fire Department Carnival and various waterfront festivals create seasonal demand spikes, making properties within walking distance of these venues particularly lucrative for short term rentals.
Airbnb and lodging taxes in Keyport, New Jersey

In Keyport, 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.

Taxes and filing responsibilities

  • Additionally, hosts must collect the state's occupancy tax of 5% on rental charges.
  • Monmouth County may impose a local hotel/motel tax of up to 3%, though specific rates for Keyport vary by municipal ordinance.
  • The Borough of Keyport itself may levy additional local occupancy taxes ranging from 1 to 3% depending on local regulations established around 2018 to 2020.
  • Taxes are typically collected from guests at the time of booking through Airbnb's platform, which automatically calculates and remits state taxes in New Jersey as of 2019, though hosts remain responsible for registering with the New Jersey Division of Taxation and filing quarterly returns (Form ST 50) for any additional local taxes not collected by the platform.
  • Exemptions generally apply to stays exceeding 90 days, rentals to permanent residents, and accommodations provided to certain government employees or during emergencies.
Total cost to purchase, furnish and operate an Airbnb in Keyport, New Jersey

To start an Airbnb in Keyport, New Jersey, the total estimated costs would be approximately $485,000 to $565,000.

Cost breakdown

  • Property purchase costs around $400,000 to $450,000 based on median home prices in Monmouth County.
  • Furnishing a 2 to 3 bedroom property would cost $15,000 to $25,000 including furniture, appliances, linens, and decor from retailers like IKEA, Wayfair, and local stores.
  • Initial setup costs including professional photography, listing creation, and marketing materials would be $2,000 to $3,000.
  • Permits and fees including business registration, short term rental permits, and potential municipal licensing would cost $500 to $1,500.
  • Insurance including landlord and short term rental coverage would be $2,500 to $4,000 annually.
  • Utilities setup and deposits for electricity, gas, water, internet, and cable would cost $1,000 to $1,500.
  • First six months operating costs including utilities ($1,800), cleaning services ($3,600), maintenance ($2,000), property management software ($300), and marketing ($1,000) would total approximately $8,700.
  • Additional costs may include legal consultation ($1,000 to $2,000) and initial inventory of supplies ($500 to $1,000).
Are Airbnb properties in Keyport, New Jersey profitable?

Airbnb properties in Keyport, New Jersey typically generate annual revenues between $15,000 to $35,000 for entire home listings, with average daily rates ranging from $85 to $150 depending on property size and proximity to Raritan Bay waterfront areas.

Profitability indicators

  • Operating expenses generally consume 40 to 60% of gross revenue, including cleaning fees ($50 to $80 per turnover), property management costs (15 to 25% if outsourced), utilities ($200 to $400 monthly), insurance premiums ($1,200 to $2,000 annually).
  • Net profit margins typically range from 15 to 35% for well managed properties, with waterfront or recently renovated homes achieving higher occupancy rates of 60 to 75% compared to 45 to 60% for standard properties.
  • Success factors include strategic pricing during peak summer months when demand increases due to nearby beaches and proximity to NYC (45 minute train ride), professional photography, responsive guest communication, and maintaining consistent 4.8+ star ratings.
  • Properties within walking distance of Keyport's downtown area and ferry services to Manhattan command premium rates, with some hosts reporting annual profits of $8,000 to $18,000 after expenses.
What is the expected return on investment for an Airbnb in Keyport, New Jersey?

Airbnb investments in Keyport, New Jersey typically generate annual ROI of 8 to 12% with cash on cash returns ranging from 6 to 10% based on the area's proximity to NYC ferry connections and seasonal shore demand. Properties within walking distance of the Keyport waterfront and ferry terminal command premium rates of $120 to 180 per night during peak summer months (June September) and $80 to 120 during off season, with average occupancy rates of 65 to 75% annually.

Return planning figures

  • Initial investment recovery and profitability typically occurs within 18 to 24 months for well positioned properties, with single family homes and waterfront condos performing strongest due to Keyport's appeal as a gateway to Sandy Hook and its growing reputation among NYC commuters seeking weekend retreats.
  • The market benefits from limited hotel inventory and increasing tourism to the Raritan Bay area, though investors should factor in New Jersey's higher property taxes averaging 2.4% annually and seasonal fluctuations that can impact winter bookings by 30 to 40%.
What company can help me find and buy a profitable Airbnb in Keyport, New Jersey?

STRSearch is a leading national platform that specializes in identifying profitable short term rental properties for investors looking in Keyport, New Jersey.

Companies and resources

  • Local real estate agents serving the Keyport area include Keller Williams Realty and Coldwell Banker Residential Brokerage, both of which have agents experienced in investment properties and vacation rentals.
  • RE/MAX agents in the Monmouth County area also work with Airbnb investors seeking properties in coastal New Jersey markets.
  • National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and Roofstock, which focuses on turnkey rental properties including short term rentals.
  • BiggerPockets connects investors with local professionals and provides educational resources for Airbnb investing.
  • Local property management companies like Awning and RedAwning can help investors identify suitable properties while offering management services.
  • Investment focused brokerages such as Roofstock and Mynd also serve the New Jersey market, helping investors find properties with strong short term rental potential in waterfront communities like Keyport.