Is Monmouth Beach, New Jersey Good for Airbnb Investment?

To start an Airbnb in Monmouth Beach, New Jersey, begin by researching local zoning laws and regulations through the Monmouth Beach Borough Hall, as the town requires short-term rental permits and has specific occupancy limits typically capped at 4-6 guests depending on property size. Contact the Borough Clerk at 732-229-2204 to obtain the necessary short-term rental license, which costs approximately $200-400 annually and requires proof of insurance, fire safety compliance, and neighbor notification. Find a suitable property within residential zones that allow short-term rentals, focusing on areas near the beach or Seven Presidents Oceanfront Park, with properties typically ranging from $800,000-2,000,000 for purchase or $3,000-8,000 monthly for rental arbitrage. Furnish the space with coastal-themed decor, essential amenities including linens, kitchen supplies, WiFi, and beach equipment like chairs and umbrellas, budgeting $15,000-30,000 for a complete setup. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting ocean proximity and local attractions like the Monmouth Beach Bathing Pavilion, setting competitive rates of $200-500 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors, and consider using property management companies like RedAwning or Vacasa if you're not local, while maintaining compliance with New Jersey's 6.625% sales tax and Monmouth County's 3% occupancy tax requirements.

To identify profitable short-term rental properties in Monmouth Beach, New Jersey, focus on oceanfront or ocean-view properties within walking distance of the beach, particularly along Ocean Avenue and streets between the beach and Route 36, as proximity to the shoreline drives premium pricing during peak summer months from May through September. Target 3-4 bedroom single-family homes or condos with modern amenities, outdoor spaces like decks or patios, parking availability, and updated kitchens and bathrooms, as these features command higher nightly rates of $300-600 during peak season compared to $150-250 in off-season. Analyze comparable properties on Airbnb and VRBO within a 0.5-mile radius, examining their occupancy rates, seasonal pricing fluctuations, and guest reviews to identify gaps in the market, while considering that Monmouth Beach's limited inventory of approximately 50-75 active STRs creates less competition than neighboring areas like Long Branch or Asbury Park. Research local regulations through Monmouth County and Monmouth Beach Borough offices, as New Jersey coastal communities have varying STR ordinances, and utilize tools like AirDNA, Mashvisor, and Rabbu to analyze market data, revenue projections, and seasonal trends specific to the Monmouth Beach market, while monitoring nearby attractions like Sandy Hook, Twin Lights Historic Site, and proximity to NYC transportation via NJ Transit to understand guest demand drivers.

To obtain an Airbnb/STR permit in Monmouth Beach, New Jersey, you must first contact the Monmouth Beach Borough Clerk's office at Borough Hall located at 36 Beach Road to inquire about short-term rental licensing requirements, as the borough likely requires registration under their local ordinances. You'll need to submit a completed short-term rental 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), fire safety inspection certificate, and a site plan showing parking availability and property layout. The application fee is estimated at $200-400 annually, with additional inspection fees of approximately $100-150. You must also obtain a New Jersey business registration certificate from the state and register for tax collection purposes with both state and local authorities. The property must comply with zoning requirements (likely restricted to certain residential zones), maintain adequate off-street parking (typically 1-2 spaces per unit), meet fire safety codes including smoke and carbon monoxide detectors, and adhere to occupancy limits based on bedrooms and square footage. The approval timeline typically takes 4-8 weeks after submitting a complete application, pending inspections and zoning compliance verification. Once approved, you'll receive a permit that must be renewed annually and displayed prominently at the property, and you'll be required to maintain guest registries and remit local occupancy taxes.

Short-term rentals (STRs) in Monmouth Beach, New Jersey are generally prohibited under the borough's zoning ordinances, which restrict residential properties to long-term occupancy only. The borough has maintained strict regulations against transient accommodations in residential zones, effectively banning platforms like Airbnb and VRBO in most areas of the community. Monmouth Beach's position aligns with several other shore communities in Monmouth County that have enacted similar restrictions to preserve residential character and prevent overtourism. The borough's zoning code typically requires rental periods of 30 days or longer, and violations can result in fines and cease-and-desist orders. As of recent years, there have been no significant changes to liberalize these restrictions, and the borough continues to enforce its anti-STR stance through code enforcement actions. Property owners considering short-term rentals should consult directly with Monmouth Beach's zoning office, as operating an illegal STR can result in penalties ranging from $500 to $2,000 per violation, and the borough has been active in pursuing enforcement actions against violators.

The best areas for Airbnb investment in Monmouth Beach, New Jersey are the beachfront neighborhoods along Ocean Avenue and the residential streets between the beach and Route 36, particularly around Beach Road and Seaview Avenue. The oceanfront properties command premium rates due to direct beach access and stunning Atlantic Ocean views, attracting summer vacationers, weekend getaways from New York City, and families seeking beach rentals from May through September. The mid-town residential area offers more affordable investment opportunities while still providing easy beach access within a 2-3 block walk, appealing to budget-conscious families and groups. The northern section near the Sea Bright border benefits from proximity to both towns' amenities and attracts visitors attending events at nearby Monmouth Park Racetrack, corporate retreats, and business travelers working in the Red Bank-Long Branch corridor. These areas capitalize on Monmouth Beach's appeal as a quieter alternative to busier shore towns while maintaining close proximity to NYC via NJ Transit, making them attractive for both leisure tourists seeking a peaceful beach experience and business travelers needing coastal accommodations.

In Monmouth Beach, New Jersey, Airbnb hosts are subject to multiple lodging and occupancy taxes including the New Jersey state sales tax of 6.625% on short-term rentals under 90 days, plus the state occupancy tax of 5% on transient accommodations. Monmouth County imposes an additional hotel/motel occupancy tax of approximately 3%, while Monmouth Beach Borough may levy a local occupancy tax of around 2-3% depending on municipal ordinances enacted around 2018-2020. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties where the platform has tax collection agreements with the state and local jurisdictions, which began in New Jersey around 2019. For taxes not collected by Airbnb, hosts must register with the New Jersey Division of Taxation and local tax authorities, collect taxes from guests, and remit payments monthly or quarterly depending on volume, with annual gross receipts under $20,000 potentially qualifying for less frequent filing. Exemptions generally apply to stays over 90 consecutive days, rentals to permanent residents, and accommodations for certain government or charitable purposes, though hosts should verify current rates and collection procedures with the New Jersey Division of Taxation, Monmouth County tax office, and Monmouth Beach Borough clerk as tax rates and collection methods have evolved since 2019.

To start an Airbnb in Monmouth Beach, New Jersey, expect total costs of approximately $1,150,000-$1,400,000. Property purchase represents the largest expense at $900,000-$1,200,000 for a median-priced home suitable for short-term rental in this coastal community. Furnishing costs range $25,000-$40,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup including professional photography, listing creation, and marketing materials costs $2,000-$3,500. Permits and fees total $1,500-$2,500, covering business registration, short-term rental permits, and local compliance requirements. Insurance premiums for short-term rental coverage run $3,000-$5,000 annually. Utility setup and deposits for electricity, gas, water, internet, and cable cost $1,000-$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) total approximately $8,700. Additional working capital of $10,000-$15,000 should be reserved for unexpected expenses, seasonal fluctuations, and initial vacancy periods while establishing the rental's reputation and booking momentum.

Airbnb properties in Monmouth Beach, New Jersey demonstrate strong profitability potential with average nightly rates ranging from $200-400 during peak summer months (May-September) and $120-200 in off-season, generating annual revenues of $35,000-65,000 for well-managed properties. Operating expenses typically include property taxes ($8,000-15,000 annually), utilities ($2,400-3,600), cleaning fees ($40-60 per turnover), maintenance ($2,000-4,000), insurance ($1,200-2,000), and Airbnb fees (3% host fee plus guest service fees), resulting in total annual expenses of $15,000-25,000. Successful properties achieve profit margins of 40-60%, with oceanfront or ocean-view properties commanding premium rates and higher occupancy rates of 70-85% during summer months. Key success factors include proximity to the beach (properties within 2-3 blocks perform best), professional photography, responsive host communication, and amenities like parking, outdoor spaces, and modern furnishings. A typical 3-bedroom beach house purchased for $800,000-1.2 million can generate $20,000-40,000 in annual net profit, while smaller 1-2 bedroom units yield $15,000-25,000 annually, with properties benefiting from Monmouth Beach's appeal to New York City vacationers seeking weekend getaways and summer rentals.

Airbnb investments in Monmouth Beach, New Jersey typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-14%, driven by the area's proximity to beaches and New York City attracting seasonal renters willing to pay premium rates of $200-400 per night during peak summer months. Properties within walking distance of the beach command the highest returns, with investors typically reaching profitability within 18-24 months after accounting for initial renovation costs, furnishing, and local licensing requirements. The market benefits from consistent demand from Memorial Day through Labor Day, with shoulder seasons in spring and fall providing additional revenue streams, while winter months see reduced occupancy but still maintain some demand from weekend visitors, resulting in average annual occupancy rates of 65-75% for well-managed properties in desirable locations near Seven Presidents Oceanfront Park and the Monmouth Beach Bathing Pavilion.

STRSearch is a national platform that helps investors identify profitable short-term rental properties including in Monmouth Beach, New Jersey. Local real estate agents specializing in investment properties in the area include Diane Turton Realtors, which has been serving the Jersey Shore since 1969, and Coldwell Banker Riviera, established in 1906 with strong presence in Monmouth County. Century 21 Thomson & Co. and RE/MAX Central also have agents experienced in vacation rental investments along the shore. National services include Mashvisor, which provides Airbnb analytics and property search tools, AirDNA for market data and revenue projections, and Awning for full-service Airbnb property management. RedAwning offers vacation rental property search and management services, while companies like Vacasa and AvantStay provide property management for short-term rentals. Local property management companies such as Shore Summer Rentals and Jersey Shore Vacation Rentals can assist with operations, and investment-focused firms like BiggerPockets marketplace and Roofstock occasionally feature short-term rental opportunities in coastal New Jersey markets.