Is Millburn, New Jersey Good for Airbnb Investment?

To start an Airbnb in Millburn, New Jersey, begin by researching local zoning laws and regulations through the Millburn Township Planning Department, as the township may require special permits or have restrictions on short-term rentals in residential zones. Contact the township clerk's office at (973) 564-7000 to obtain necessary business licenses and confirm compliance with local ordinances, which typically include fire safety inspections and occupancy permits. Find a suitable property by working with local real estate agents familiar with Millburn's market, focusing on areas near downtown or close to NYC transportation links like the Summit train station, with properties typically ranging from $600,000-$1.5 million. Furnish the space with quality furniture from retailers like West Elm or CB2, ensuring you include essentials like high-speed internet, smart locks, and safety equipment including smoke detectors and carbon monoxide alarms as required by New Jersey state law. Create your Airbnb listing with professional photography highlighting Millburn's proximity to Manhattan (30 minutes by train), local attractions like the Paper Mill Playhouse, and nearby hiking trails in the South Mountain Reservation. Set competitive pricing around $150-300 per night based on comparable listings in neighboring Summit and Short Hills. Manage your property by establishing relationships with local cleaning services, maintenance contractors, and consider using 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 Millburn, New Jersey, focus on locations within walking distance of the NJ Transit train station for easy NYC access, near downtown Summit Avenue for dining and shopping, or close to South Mountain Reservation for outdoor recreation appeal. Target 2-4 bedroom single-family homes or townhouses built after 1950 with modern amenities, parking spaces, and outdoor areas like decks or patios that can command $150-300 per night. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in neighboring Summit and Short Hills, aiming for 60-75% occupancy rates and 8-12% annual returns. Research competition by studying existing Airbnb and VRBO listings within a 2-mile radius, noting their pricing strategies, amenities, and guest reviews to identify market gaps. Utilize tools like Rabbu for Millburn-specific rental regulations, Partner with local property management companies like Awning or RedAwning who understand Morris County STR requirements, and leverage Zillow and Realtor.com for property acquisition while monitoring the luxury market spillover from nearby affluent areas like Chatham and Madison.

To obtain an Airbnb/STR permit in Millburn, New Jersey, you must first contact the Millburn Township Building Department at 375 Millburn Avenue to inquire about short-term rental regulations, as the township may require a Certificate of Occupancy inspection and zoning compliance review. You'll need to submit an application including property deed, floor plans, proof of insurance (typically $1 million liability coverage), fire safety inspection certificate, and parking plan showing adequate off-street parking spaces. The application fee is estimated at $150-300 with additional inspection fees of $100-200, and you may need to register with the New Jersey Division of Taxation for hotel/motel tax collection. Millburn likely requires properties to be owner-occupied or have specific zoning designations, maintain maximum occupancy limits based on bedrooms and square footage, provide 24/7 contact information for complaints, and ensure compliance with fire safety codes including smoke detectors and emergency exits. The approval process typically takes 30-60 days depending on inspection scheduling and any required corrections, and you must also register with the state of New Jersey for tax purposes and potentially obtain a business license from Essex County.

Short-term rentals (STRs) in Millburn, New Jersey are generally prohibited or heavily restricted under the township's zoning ordinances, which typically classify residential properties for long-term occupancy only. Millburn, like many affluent suburban communities in Essex County, has maintained strict residential zoning that does not permit commercial lodging activities in single-family and multi-family residential zones, effectively banning platforms like Airbnb and VRBO in most areas of the township. The township has not enacted specific STR regulations but instead relies on existing zoning laws that prohibit transient accommodations in residential districts, with violations subject to code enforcement actions and fines. Recent trends in New Jersey municipalities show increasing scrutiny of STRs, and Millburn has maintained its restrictive stance without recent changes to accommodate short-term rental operations, prioritizing the preservation of its residential character and addressing concerns about parking, noise, and neighborhood disruption that STRs can create in suburban settings.

The most promising Airbnb investment areas in Millburn, New Jersey include the downtown district near Millburn Avenue, which attracts business travelers due to its proximity to NYC via NJ Transit and corporate headquarters like Prudential Financial and Merck in nearby areas. The Taylor Park neighborhood offers appeal for families visiting local attractions and attending events at the Paper Mill Playhouse, a renowned regional theater that draws visitors year-round. Areas near the Short Hills Mall district are attractive for luxury shopping tourists and business executives, while neighborhoods close to South Mountain Reservation appeal to outdoor enthusiasts and weekend visitors seeking hiking and recreational activities. The residential areas near Millburn High School and local private schools attract visiting families during school events, college tours, and sports tournaments, while the proximity to major pharmaceutical companies in Summit and Madison creates demand from business travelers and consultants working on extended projects in the region.

In Millburn, New Jersey, Airbnb hosts are subject to New Jersey's state sales tax of 6.625% on lodging accommodations, which applies to short-term rentals under 90 days and is collected by Airbnb directly from guests and remitted to the state on behalf of hosts through their tax collection agreement established in 2019. Additionally, Essex County imposes a 5% hotel/motel occupancy tax that applies to short-term rentals, though collection and remittance procedures for this county tax may require hosts to register directly with Essex County tax authorities and file monthly returns. Millburn Township itself does not currently impose a separate municipal lodging tax, but hosts must ensure compliance with local zoning regulations and business licensing requirements. Exemptions typically apply to stays of 90 days or longer, which are considered long-term rentals rather than transient accommodations, and certain medical or emergency housing situations may qualify for tax exemptions under state guidelines.

The total cost to start an Airbnb in Millburn, New Jersey is approximately $875,000-$950,000. Property purchase represents the largest expense at $800,000-$850,000 based on median home prices in this affluent Essex County suburb. Furnishing costs range $25,000-$35,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, welcome materials, and basic renovations total $3,000-$5,000. Permits and fees including business registration, short-term rental permits, and potential township licensing fees cost approximately $500-$1,500. Insurance including landlord coverage and short-term rental protection adds $2,000-$3,000 annually. Utilities including electricity, gas, water, internet, and cable average $300-$400 monthly or $1,800-$2,400 for six months. First six months operating costs including cleaning services, maintenance, supplies, platform fees, and marketing total $8,000-$12,000. Additional considerations include potential HOA restrictions, property taxes averaging $20,000-$25,000 annually, and Millburn's proximity to New York City making it attractive to business travelers and tourists visiting the metropolitan area.

Airbnb properties in Millburn, New Jersey typically generate annual revenues between $25,000-$45,000 for entire homes and $12,000-$20,000 for private rooms, with average daily rates ranging from $85-$150 depending on property size and amenities. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($50-$80 per turnover), property management (15-25% of revenue), utilities ($200-$400 monthly), insurance ($1,200-$2,000 annually), and maintenance costs ($2,000-$4,000 yearly). Net profit margins typically range from 15-35% for well-managed properties, with successful hosts achieving higher margins through strategic pricing, excellent guest experiences, and efficient operations. Key success factors in Millburn include proximity to NYC (30-minute train ride), targeting business travelers and weekend visitors, maintaining 4.8+ star ratings, offering amenities like parking and WiFi, and leveraging the area's appeal to families visiting nearby universities. Properties within walking distance of Millburn train station command premium rates, while those near parks and downtown areas attract leisure travelers, with the most profitable hosts often managing 2-3 properties and achieving 70-85% occupancy rates through dynamic pricing and professional photography.

Airbnb investments in Millburn, New Jersey typically generate annual ROI of 8-12% based on the area's proximity to New York City and strong demand from business travelers and families visiting the region. Cash-on-cash returns generally range from 6-10% annually, with properties averaging $150-250 per night depending on size and amenities. Most investors achieve profitability within 18-24 months, with single-family homes and condos near NJ Transit stations performing particularly well due to Millburn's appeal as a suburban alternative to Manhattan hotels. The market benefits from consistent year-round occupancy rates of 65-75%, driven by corporate relocations, medical professionals working at nearby Summit Medical Group facilities, and tourists exploring the Paper Mill Playhouse and surrounding Morris County attractions. Initial investment requirements typically range from $80,000-150,000 for down payments on properties valued between $400,000-750,000, with gross rental yields averaging 10-14% before expenses in this affluent Essex County township.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Millburn, New Jersey, using data analytics and market insights. Local real estate agents specializing in investment properties in the Millburn area include Keller Williams Realty agents who focus on Essex County investment opportunities, Coldwell Banker residential specialists with STR experience, and RE/MAX agents familiar with the Morris County and Essex County markets. National services include AirDNA for market analysis and revenue projections, Mashvisor for investment property analytics, BiggerPockets for investor networking and deal sourcing, and Awning for short-term rental investment guidance. Local property management companies that assist with Airbnb investments include RedAwning property management, Vacasa for full-service STR management, and several boutique property management firms serving the greater Newark metropolitan area. Investment-focused real estate brokerages like Marcus & Millichap and CBRE also provide services for multi-family and investment property acquisitions in the Millburn market, while platforms like Roofstock and HomeUnion offer turnkey rental property solutions that can be adapted for short-term rental use in New Jersey markets.