Is Toms River, New Jersey Good for Airbnb Investment?

To start an Airbnb in Toms River, New Jersey, begin by researching local zoning laws and regulations through the Toms River Township Planning Department, as short-term rentals may require special permits or be restricted in certain residential zones. Contact the Township Clerk's office at (732) 341-1000 to obtain necessary business licenses and determine if you need a Certificate of Occupancy for rental use. Find a suitable property by working with local real estate agents familiar with investment properties, focusing on areas near the Jersey Shore attractions or Seaside Heights (approximately 15 minutes away) to maximize rental appeal. Ensure the property meets New Jersey's rental safety requirements including smoke detectors, carbon monoxide detectors, and proper egress windows. Furnish the space with coastal-themed decor, essential amenities, and quality linens while ensuring compliance with Ocean County health department standards for short-term rentals. Create your Airbnb listing with professional photos highlighting proximity to beaches, Island Beach State Park, and local attractions like Cattus Island County Park. Set competitive pricing based on seasonal demand (higher rates during summer months May-September), and establish management protocols including 24/7 guest communication, professional cleaning services between stays, and coordination with local maintenance contractors. Register for New Jersey sales tax collection through the state's Division of Taxation, as you'll need to collect and remit occupancy taxes on short-term rental income.

To identify profitable short-term rental properties in Toms River, New Jersey, focus on locations within 1-2 miles of Barnegat Bay waterfront, near popular attractions like Cattus Island County Park, and in established residential neighborhoods with easy highway access to major shore destinations. Target 3-4 bedroom single-family homes or townhouses built after 1980 with modern amenities, outdoor spaces, parking for multiple vehicles, and water views or proximity to recreational activities, as these command premium rates of $150-300 per night during peak summer season. Conduct pricing analysis using AirDNA and Mashvisor to evaluate average daily rates, occupancy rates (typically 60-75% in peak months), and seasonal demand patterns, while researching competition through Airbnb and VRBO to identify gaps in amenities or pricing strategies. Utilize tools like Rabbu, BiggerPockets calculators, and local MLS data to analyze purchase prices (median around $400,000-600,000), property taxes, insurance costs, and renovation expenses, while partnering with local real estate agents familiar with township STR regulations and connecting with property management companies like Awning or RedAwning for operational support in this growing Jersey Shore market.

To obtain an Airbnb/STR permit in Toms River, New Jersey, you must first contact the Toms River Township Planning Department at 33 Washington Street to determine if short-term rentals are permitted in your specific zoning district, as the township has restrictive regulations on STRs. If permitted, you'll need to submit an application to the Township Clerk's office including a completed short-term rental registration form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the Toms River Fire Prevention Bureau, proof of liability insurance (minimum $1 million), floor plan showing maximum occupancy, contact information for a local property manager if you're not local, and parking plan showing adequate off-street parking. Required fees typically include a $150 application fee, $75 annual renewal fee, and approximately $100-200 for fire inspection costs. You must also register with the New Jersey Division of Taxation for hotel/motel tax collection and obtain a Certificate of Authority. The approval process generally takes 4-6 weeks after submitting a complete application, though this can extend to 8-10 weeks during peak seasons. Specific Toms River requirements include maintaining a guest registry, posting maximum occupancy limits, ensuring quiet hours from 10 PM to 8 AM, providing adequate waste management, and having a local contact available 24/7 for emergencies, with properties limited to single-family homes in residential zones and subject to annual inspections.

Short-term rentals (STRs) in Toms River, New Jersey operate under municipal regulations that generally allow them with specific restrictions and licensing requirements. As of 2023-2024, Toms River Township permits STRs in most residential zones but requires operators to obtain a business license and comply with zoning ordinances, including occupancy limits typically capped at 2 people per bedroom plus 2 additional guests, parking requirements of one space per bedroom, and noise restrictions with quiet hours from 10 PM to 8 AM. The township prohibits STRs in certain residential districts where they conflict with single-family zoning, and properties must meet safety standards including smoke detectors, carbon monoxide detectors, and fire extinguishers. Recent changes around 2022-2023 included stricter enforcement of existing regulations and enhanced penalties for violations, with the township requiring annual license renewals and implementing a complaint-driven enforcement system. Property owners must also comply with New Jersey state tax requirements and Ocean County health department regulations, while maintaining liability insurance and providing emergency contact information to the township.

The best areas for Airbnb investment in Toms River, New Jersey are the Ortley Beach and Silver Beach neighborhoods along the Barnegat Bay waterfront, which attract summer tourists and water sports enthusiasts from May through September. The downtown Toms River area near the courthouse and municipal complex offers year-round potential for business travelers and visitors to government offices. The neighborhoods around Cattus Island County Park and the Toms River Country Club appeal to nature lovers and golf tourists seeking recreational activities. Areas near Ocean County Mall and Route 37 corridor provide convenient access for shopping tourists and families visiting nearby attractions like Six Flags Great Adventure (20 minutes away). The historic village section near the Toms River seaport offers charm for visitors interested in maritime history and antique shopping, while properties near Community Medical Center attract medical tourists and visiting families of patients.

In Toms River, 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, Ocean County imposes a 3% hotel/motel occupancy tax on transient accommodations including Airbnbs. The state sales tax is typically collected by Airbnb directly from guests and remitted to the New Jersey Division of Taxation on behalf of hosts through their automated tax collection system, while the county occupancy tax may require separate registration and remittance by individual hosts to Ocean County's tax collection office on a monthly or quarterly basis depending on volume. Toms River itself does not impose a separate municipal lodging tax as of 2023. Exemptions generally apply to stays of 90 days or longer which are considered long-term rentals rather than transient accommodations, and certain government or charitable organization bookings may qualify for exemptions with proper documentation. Hosts should register with the New Jersey Division of Taxation for sales tax purposes and with Ocean County for occupancy tax compliance, maintaining detailed records of all bookings and tax collections for audit purposes.

To start an Airbnb in Toms River, New Jersey, expect total costs around $420,000-$480,000. Property purchase represents the largest expense at $350,000-$400,000 based on median home prices in the area as of 2023. Furnishing costs typically range $15,000-$25,000 for a complete 2-3 bedroom home including furniture, appliances, linens, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic marketing materials run approximately $1,500-$2,500. Permits and fees vary but expect $500-$1,200 for business registration, short-term rental permits, and potential township licensing requirements. Insurance costs increase significantly for short-term rentals, adding roughly $2,000-$3,500 annually compared to standard homeowner's insurance. Utilities including electricity, gas, water, internet, and cable average $300-$450 monthly in New Jersey. First six months operating costs encompass utilities ($1,800-$2,700), cleaning services between guests ($150-$200 per turnover assuming 15-20 bookings), maintenance and supplies ($1,000-$1,500), platform fees to Airbnb typically 3% of bookings, and property management if outsourced at 15-25% of revenue, totaling approximately $8,000-$12,000 for the initial six-month period.

Airbnb properties in Toms River, New Jersey typically generate annual revenues between $15,000-$35,000 for seasonal rentals and $25,000-$45,000 for year-round properties, with peak summer months (June-August) commanding $150-$300 per night due to proximity to Jersey Shore beaches. Operating expenses generally range from 40-60% of gross revenue, including property management fees (10-20%), cleaning costs ($75-$125 per turnover), utilities ($200-$400 monthly), insurance ($1,200-$2,500 annually), and maintenance ($2,000-$4,000 yearly). Net profit margins typically fall between 15-35%, with successful properties averaging 65-75% occupancy rates during peak season and 35-45% in off-season. Properties within 2-3 miles of Island Beach State Park or downtown Toms River perform best, with waterfront or water-view units achieving premium rates. A typical 3-bedroom ranch near the Toms River waterfront might generate $32,000 annually with $19,000 in expenses, yielding approximately $13,000 profit (40% margin), while properties further inland or lacking amenities often struggle with 20-25% occupancy rates and break-even scenarios. Success factors include professional photography, responsive communication, proximity to beaches or attractions, modern amenities like WiFi and air conditioning, and competitive pricing strategies that adjust seasonally.

Airbnb investments in Toms River, New Jersey typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, driven by the area's proximity to Jersey Shore beaches and seasonal tourism demand. Properties within 2-3 miles of the waterfront or near Island Beach State Park command premium nightly rates of $150-250 during peak summer months (June-August) and $80-120 during off-season, with occupancy rates averaging 65-75% annually. Initial investment recovery typically occurs within 7-10 years for properties purchased at median prices of $400,000-600,000, with monthly gross revenues of $2,500-4,200 for well-positioned 3-4 bedroom homes. The market benefits from consistent demand from New York and Philadelphia metropolitan area visitors, with properties requiring initial renovation investments of $15,000-30,000 typically reaching profitability within 18-24 months of operation, assuming effective marketing and property management strategies are implemented.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Toms River, New Jersey, providing data analytics and market insights for Airbnb investments. Local real estate agents specializing in investment properties include Century 21 Action Plus Realty, Coldwell Banker Riviera Realty, and RE/MAX Central, with agents like those at Keller Williams Shore Properties who understand the Jersey Shore rental market dynamics. National services include AirDNA for market analysis and revenue projections, Mashvisor for property investment analytics, and RedAwning for vacation rental market data specific to the Toms River area. Local property management companies such as Shore Summer Rentals and Jersey Shore Property Management offer turnkey Airbnb services, while investment-focused firms like BiggerPockets connect investors with local market experts. Additional services include VRBO's investment tools, Awning property management, and local mortgage brokers like First Choice Loan Services who specialize in investment property financing in Ocean County, with many of these services emerging and expanding significantly between 2018-2023 as the short-term rental market grew in the Jersey Shore region.