Is Ocean Grove, New Jersey Good for Airbnb Investment?

To start an Airbnb in Ocean Grove, New Jersey, begin by researching local regulations through the Neptune Township municipal offices since Ocean Grove falls under their jurisdiction, as short-term rentals typically require special permits and may have restrictions on rental duration (often minimum 7-day stays in shore communities). Contact Neptune Township's zoning department at 732-988-5200 to obtain necessary permits including a Certificate of Occupancy for transient accommodation, business license, and potentially a fire safety inspection certificate. Find a suitable property by searching real estate listings in the Victorian-era homes common to Ocean Grove, focusing on properties within walking distance of the beach and Great Auditorium, with prices ranging from $400,000-$800,000 for typical properties as of 2023. Furnish the space with coastal-themed decor, essential amenities like WiFi, air conditioning, beach equipment, and ensure compliance with New Jersey's smoke detector and carbon monoxide detector requirements. Create your Airbnb listing with professional photos highlighting Ocean Grove's unique Methodist camp meeting heritage and proximity to Asbury Park, setting competitive rates of $150-$400 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 Awning or RedAwning if you're not local, while maintaining the required guest registry and remitting the 6.625% New Jersey sales tax plus any local occupancy taxes to the state Department of Treasury.

To identify profitable short-term rental properties in Ocean Grove, New Jersey, focus on locations within 2-3 blocks of the beach, particularly near Main Avenue and the Great Auditorium, as these areas command premium rates during the summer season from Memorial Day through Labor Day. Target Victorian-era homes or well-maintained properties with 3-4 bedrooms, outdoor spaces like porches or decks, parking availability, and period charm that appeals to families and groups seeking authentic Jersey Shore experiences. Conduct pricing analysis using AirDNA and Mashvisor to track seasonal rate fluctuations, with peak summer rates ranging $300-600 per night and off-season rates dropping to $100-200, while analyzing comparable properties within a 0.5-mile radius of the beach and main attractions. Research competition by monitoring existing STR listings on Airbnb and VRBO, noting occupancy patterns, amenities offered, and guest reviews to identify market gaps, particularly focusing on properties that cater to families attending Methodist camp meetings or music events at the Great Auditorium. Utilize tools like Rabbu, AllTheRooms, and local market reports from Cape May County tourism boards, while connecting with Ocean Grove real estate agents familiar with STR regulations and the township's unique zoning restrictions, as the area's seasonal nature and religious heritage create specific demand patterns that differ from typical beach markets.

To obtain an Airbnb/STR permit in Ocean Grove, New Jersey, you must apply through the Neptune Township municipal offices since Ocean Grove falls under Neptune Township jurisdiction. Begin by contacting the Neptune Township Zoning Office at 25 Neptune Boulevard to confirm current STR regulations and obtain application forms. Required documents typically include a completed short-term rental application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, liability insurance policy (minimum $1 million coverage), floor plan of the rental unit, and contact information for a local property manager if you're not residing on-site. The application fee is estimated at $200-400 annually, with additional inspection fees of approximately $100-150. Submit your complete application to the Township Clerk's office and schedule required inspections with the fire department and building department. The approval timeline is typically 4-6 weeks from submission of a complete application. Ocean Grove specific requirements include adherence to the community's historic district guidelines, compliance with parking regulations (typically requiring one off-street parking space per rental unit), noise ordinances due to the residential nature of the area, and potential restrictions during peak summer months when the Methodist Camp Meeting Association events occur. You must also register with the New Jersey Division of Taxation for hotel/motel tax collection and remit applicable state and local occupancy taxes.

Short-term rentals (STRs) in Ocean Grove, New Jersey are generally prohibited or heavily restricted due to the community's unique governance structure and zoning regulations. Ocean Grove, which is an unincorporated community within Neptune Township in Monmouth County, is managed by the Ocean Grove Camp Meeting Association, a Methodist organization that has historically maintained strict control over property use and rentals. The area's zoning typically limits rentals to longer-term arrangements (usually 30 days or more), effectively prohibiting most Airbnb-style short-term rentals. Neptune Township's municipal ordinances also impose restrictions on short-term rentals throughout their jurisdiction, including Ocean Grove, with requirements for special permits, inspections, and compliance with specific safety and zoning standards. Recent years have seen increased enforcement of these restrictions as municipalities across New Jersey have grappled with the impacts of platforms like Airbnb and VRBO on residential neighborhoods and housing availability.

The most attractive areas for Airbnb investment in Ocean Grove, New Jersey are the Historic District near the Great Auditorium and Tent City, which draws thousands of visitors annually for religious camp meetings and concerts from May through September, creating consistent seasonal demand. The beachfront area along Ocean Pathway and surrounding streets offers prime real estate for summer vacationers seeking proximity to the pristine beaches and Victorian architecture, with properties here commanding premium rates during peak season. The Main Avenue corridor provides excellent investment opportunities due to its walkability to restaurants, shops, and the beach, appealing to both leisure travelers and those attending events at the Great Auditorium. Properties near Asbury Park's border benefit from spillover demand when Asbury Park's accommodations fill up during major events at venues like Stone Pony or Convention Hall, while still maintaining Ocean Grove's quieter, family-friendly atmosphere. The area around Fletcher Lake offers a more secluded option that attracts visitors seeking peaceful retreats while remaining within walking distance of main attractions, making it ideal for longer stays and off-season bookings when guests prefer tranquil settings over beachfront locations.

Ocean Grove, New Jersey Airbnb hosts are subject to New Jersey's 6.625% state sales tax and the state's 5% occupancy tax, totaling 11.625% in state taxes on short-term rental bookings. Additionally, Neptune Township (which encompasses Ocean Grove) imposes a local occupancy tax of approximately 3%, bringing the total tax burden to around 14.625%. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties where Airbnb has tax collection agreements with the state and local jurisdictions, which began in New Jersey around 2019. For properties where Airbnb doesn't collect taxes automatically, hosts must register with the New Jersey Division of Taxation, obtain a Certificate of Authority, collect taxes from guests, and remit payments quarterly along with required tax returns. Local taxes may require separate registration with Neptune Township's tax collector office. Exemptions generally apply to stays of 90 days or longer, which are considered long-term rentals rather than transient accommodations, and some exemptions may exist for certain government or charitable organization bookings, though these are rare in the short-term rental context.

To start an Airbnb in Ocean Grove, New Jersey, expect total costs around $650,000-$750,000. Property purchase represents the largest expense at approximately $550,000-$650,000 for a median-priced home near the beach in this Victorian seaside community. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom property including beds, linens, kitchen essentials, living room furniture, and coastal-themed decor appropriate for the area. Initial setup costs including professional photography, listing creation, welcome materials, and basic supplies total around $2,000-$3,000. Permits and fees in Monmouth County include short-term rental registration ($200-$500), business license ($100-$300), and potential homeowner association fees if applicable ($500-$1,500 annually). Insurance costs increase 20-30% above standard homeowner's insurance, adding approximately $2,000-$3,500 annually for short-term rental coverage. Monthly utilities including electricity, gas, water, internet, and cable average $300-$450 per month. First six months of operating costs including utilities ($1,800-$2,700), cleaning services between guests ($150 per turnover, estimated 24 turnovers = $3,600), maintenance and repairs ($2,000), platform fees to Airbnb and VRBO (3% of bookings, estimated $3,000), and marketing expenses ($1,000) total approximately $11,400-$12,300.

Airbnb properties in Ocean Grove, New Jersey typically generate annual revenues between $25,000-$45,000 for well-positioned properties, with peak summer months (June-August) accounting for 60-70% of total income due to the area's proximity to Asbury Park and beach attractions. Operating expenses generally range from $12,000-$20,000 annually, including property taxes ($8,000-$12,000), utilities ($2,400-$3,600), cleaning fees ($150-$200 per turnover), maintenance ($1,500-$2,500), and Airbnb service fees (3% host fee plus guest fees). Profit margins typically fall between 35-55% for properties within 2-3 blocks of the beach, with Victorian-era homes and properties near the Great Auditorium commanding premium rates of $200-$350 per night during summer versus $80-$120 in off-season. Success factors include proximity to the beach and town center, historic charm preservation, professional photography, responsive host communication, and strategic pricing that capitalizes on weekend demand and special events like the Ocean Grove Camp Meeting Association programs. Properties farther from the beach or lacking period character often see 20-30% lower occupancy rates and revenues around $18,000-$28,000 annually, resulting in profit margins of 25-40% due to similar fixed costs but reduced pricing power.

Airbnb investments in Ocean Grove, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% for properties purchased in the $400,000-$700,000 range. The seasonal nature of this Jersey Shore destination drives strong summer rental demand from May through September, with nightly rates averaging $150-$300 depending on proximity to the beach and property size. Investors can expect to achieve profitability within 18-24 months, with properties within 2-3 blocks of the beach commanding premium rates and occupancy levels of 60-75% during peak season. The Victorian charm and Methodist camp meeting heritage of Ocean Grove attracts both families and couples seeking a quieter alternative to nearby Asbury Park, supporting year-round bookings at reduced winter rates of $80-$150 per night. Properties requiring moderate renovations to meet short-term rental standards typically see total returns of 10-14% annually once fully operational, with the strongest performance from 2-4 bedroom homes featuring period details and modern amenities.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors looking in Ocean Grove, New Jersey. Local real estate agents like those at Diane Turton Realtors and Coldwell Banker Riviera have extensive knowledge of the Ocean Grove market and can help identify properties with strong Airbnb potential near the beach and historic district. National services include Mashvisor, which provides rental property analytics and market data, AirDNA for short-term rental market insights, and BiggerPockets for investor networking and deal sourcing. RedAwning offers property management and investment services for vacation rentals, while local property management companies like Shore Summer Rentals and Jersey Shore Vacation Rentals can provide market expertise and ongoing management services. Real estate investment firms such as Roofstock and Arrived Homes also operate in the New Jersey market, though their Ocean Grove inventory may be limited. Local mortgage brokers familiar with investment properties, such as those at Cross Country Mortgage or Guaranteed Rate, can assist with financing these Airbnb investments in the competitive Ocean Grove market.