Is Wildwood, New Jersey Good for Airbnb Investment?

To start an Airbnb in Wildwood, New Jersey, begin by researching local regulations as Wildwood requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential and commercial zones but may have restrictions on minimum stay requirements (often 3-7 days during peak season). Contact Wildwood City Hall at 4400 Pacific Avenue to obtain the necessary business license ($50-100 annually) and ensure your property meets fire safety codes including smoke detectors, carbon monoxide detectors, and proper egress windows. Find a suitable property within 1-2 blocks of the beach or boardwalk for maximum appeal, with 2-4 bedroom units typically renting for $150-400 per night depending on season and proximity to attractions. Furnish the space with beach-themed decor, quality linens, full kitchen amenities, beach chairs, umbrellas, and outdoor shower facilities which are highly valued by guests visiting this coastal destination. Create your Airbnb listing with professional photos highlighting ocean views, boardwalk access, and nearby attractions like Morey's Piers and the Wildwood Boardwalk, setting competitive rates that peak during summer months (June-August) at $250-400/night and drop to $75-150/night in off-season. Manage the property by coordinating cleaning between guests (budget $75-125 per turnover), maintaining 24/7 communication for guest inquiries, and partnering with local cleaning services like those found through Cape May County business directories, while ensuring compliance with New Jersey's 6.625% sales tax and local occupancy taxes that may apply to short-term rentals.

To identify profitable short-term rental properties in Wildwood, New Jersey, focus on locations within 2-3 blocks of the beach and boardwalk, particularly in areas like Crest Pier Village and near Morey's Piers, as these command premium rates of $200-400 per night during peak summer season (June-August). Target 3-4 bedroom single-family homes or condos with parking, outdoor space, and modern amenities like central air conditioning, updated kitchens, and WiFi, as families represent 70% of Wildwood's visitor base. Analyze pricing by studying comparable properties on Airbnb and VRBO during different seasons, noting that peak summer rates can be 300-400% higher than off-season rates of $75-150 per night. Research competition by monitoring occupancy rates and guest reviews of similar properties within a 0.5-mile radius, focusing on properties near popular attractions like the boardwalk amusements and Cape Henlopen State Park. Utilize tools like AirDNA for market analytics, STR Helper for revenue projections, and local resources such as the Greater Wildwood Chamber of Commerce for tourism data, while also consulting Cape May County tourism statistics and monitoring local Facebook groups like "Wildwood Rentals" for market insights and seasonal demand patterns.

To obtain an Airbnb/STR permit in Wildwood, New Jersey, you must first contact the Wildwood Building Department at City Hall located at 4400 New Jersey Avenue to begin the application process. Required documents typically include a completed short-term rental application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate, liability insurance documentation (minimum $1 million coverage), floor plans showing maximum occupancy, and contact information for a local property manager if you're not residing locally. The application fee is approximately $200-300 annually, with additional inspection fees of around $100-150. You'll need to schedule inspections with both the fire department and building department to ensure compliance with safety codes, occupancy limits, and parking requirements. Wildwood specifically requires STR properties to maintain adequate off-street parking (typically 1-2 spaces depending on unit size), install proper smoke and carbon monoxide detectors, provide emergency contact information to neighbors, and limit occupancy based on bedroom count and square footage. The entire process typically takes 4-6 weeks from application submission to permit approval, assuming all inspections pass and documentation is complete. Once approved, permits must be renewed annually, and operators must collect and remit local occupancy taxes of approximately 3-6% depending on current municipal rates.

Short-term rentals (STRs) are legal in Wildwood, New Jersey, but operate under specific municipal regulations that have evolved significantly since around 2019-2020. The city allows STRs in most residential zones but requires property owners to obtain a short-term rental license, maintain liability insurance, and comply with occupancy limits typically based on bedroom count plus additional guests. Properties must meet safety standards including smoke and carbon monoxide detectors, and owners are required to provide 24/7 contact information for noise or disturbance complaints. Wildwood has implemented restrictions on the total number of STR licenses available in certain neighborhoods to preserve residential character, and some areas near the beach and boardwalk have stricter density limitations. The city prohibits STRs in certain zoning districts and requires a minimum stay of typically 3-7 days during peak summer season. Recent changes have included enhanced enforcement mechanisms, increased licensing fees, and stricter parking requirements, with the city conducting regular inspections and imposing penalties for violations including potential license revocation for repeat offenders.

The best areas for Airbnb investment in Wildwood, New Jersey are the Boardwalk District, particularly properties within 2-3 blocks of the famous Wildwood Boardwalk, which attracts over 9 million visitors annually due to its amusement piers, water parks, and beach access. North Wildwood's Olde New Jersey Avenue area is highly desirable for its Victorian-era charm, upscale dining, and proximity to Hereford Inlet Lighthouse, drawing tourists seeking a more refined beach experience. The Crest area offers excellent investment potential due to its family-friendly atmosphere and proximity to Sunset Lake, attracting longer-stay families and fishing enthusiasts. Diamond Beach presents opportunities for luxury short-term rentals, appealing to affluent visitors seeking upscale accommodations near Cape Henlopen State Park. The area near Morey's Piers is particularly lucrative during summer months (May-September) when the amusement parks operate at full capacity, generating consistent demand from families with children. Properties near the Wildwoods Convention Center benefit from year-round business travel and events, including the popular Classic Car Show and various conferences, providing income stability beyond the traditional summer season.

In Wildwood, New Jersey, Airbnb hosts are subject to multiple lodging taxes including the New Jersey state sales tax of 6.625%, the New Jersey Tourism Promotion Fee of 0.425% (totaling 7.05% state tax), plus local occupancy taxes that typically range from 3-5% depending on the specific municipality within Wildwood. The City of Wildwood imposes an additional local occupancy tax of approximately 3% on short-term rentals under 30 days. These taxes are generally collected from guests at the time of booking through Airbnb's automatic tax collection system for most jurisdictions, though hosts may need to register directly with the New Jersey Division of Taxation and obtain a Certificate of Authority to collect sales tax. Remittance is typically required monthly or quarterly depending on volume, with payments due by the 20th of the month following the reporting period. The state taxes are remitted through New Jersey's online tax portal, while local occupancy taxes are usually paid directly to the City of Wildwood's tax collector. Exemptions may apply for stays exceeding 90 consecutive days, rentals to permanent residents, or certain government and non-profit organization bookings, though documentation is required to claim these exemptions.

To start an Airbnb in Wildwood, New Jersey, expect total costs of approximately $485,000-$565,000. Property purchase represents the largest expense at $350,000-$425,000 for a median 2-3 bedroom property near the beach. Furnishing costs range $15,000-$25,000 including beds, linens, kitchen appliances, furniture, and beach-themed decor. Initial setup costs $3,000-$5,000 covering professional photography, listing creation, welcome materials, and basic renovations. Permits and fees total $2,500-$4,000 including business license, short-term rental permit, fire safety inspection, and municipal registration fees. Insurance costs $2,400-$3,600 annually for short-term rental coverage. Utilities average $300-$500 monthly totaling $1,800-$3,000 for six months covering electricity, water, internet, cable, and trash service. First six months operating costs add $8,000-$12,000 including cleaning services ($150 per turnover), maintenance, supplies, marketing, platform fees (3% of bookings), and property management software subscriptions.

Airbnb properties in Wildwood, New Jersey demonstrate strong seasonal profitability with average annual revenues ranging from $35,000-$65,000 for typical 2-3 bedroom properties, driven by the town's peak summer tourism season from June through August when nightly rates can reach $200-$400. Operating expenses typically include property management fees (15-25%), cleaning costs ($75-$125 per turnover), utilities ($2,400-$3,600 annually), insurance ($1,200-$2,000), and maintenance ($3,000-$5,000), resulting in net profit margins of 25-40% for well-managed properties. Success factors include proximity to the boardwalk and beach (properties within 3 blocks command 30-50% premium rates), modern amenities like central air conditioning and updated kitchens, and professional photography and dynamic pricing strategies. A case study of a renovated 3-bedroom property near Morey's Piers generated $58,000 in 2023 revenue with $38,000 in expenses, yielding a 34% profit margin, while properties further from the beach or in poor condition typically see margins below 20%. The market benefits from Wildwood's established tourism infrastructure, family-friendly attractions, and limited hotel inventory, though investors must account for significant seasonality with 70-80% of annual revenue concentrated in the 16-week summer period.

Airbnb investments in Wildwood, New Jersey typically generate annual ROI of 12-18% with cash-on-cash returns ranging from 8-15%, driven by the city's strong summer tourism season from Memorial Day through Labor Day when nightly rates average $150-300 for beachfront properties and $80-150 for inland locations. Properties within 3-4 blocks of the beach and boardwalk command premium rates during peak season (June-August) with occupancy rates reaching 85-95%, while shoulder seasons (May and September) maintain 60-70% occupancy at reduced rates. Initial profitability typically occurs within 18-24 months for well-positioned properties, with investors seeing break-even on cash invested by year 2-3, assuming 20-25% down payments on properties ranging from $300,000-800,000 depending on proximity to beach and property condition. The market benefits from consistent demand due to Wildwood's established reputation as a family destination, though investors should factor in seasonal cash flow variations and higher maintenance costs due to beach environment exposure.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Wildwood, New Jersey. Local real estate agents serving the Wildwood market include Coldwell Banker Realty, RE/MAX at Wildwood, and Berkshire Hathaway HomeServices Fox & Roach Realtors, with many agents specifically focusing on investment properties near the boardwalk and beach areas. National services like Awning (founded 2017), RedAwning, and Vacasa provide comprehensive Airbnb investment analysis and property management services for the Jersey Shore market. Local specialists include Shore Premier Properties and Wildwood Realty, which have extensive knowledge of seasonal rental regulations and zoning laws specific to Wildwood's tourism-driven market. Additional national platforms such as Mashvisor, BiggerPockets, and AirDNA offer market analysis tools and investment calculators specifically for short-term rental properties, while local property management companies like Seashore Vacations and Wildwood Beach Rentals can provide insights into the most profitable neighborhoods and property types for Airbnb investments in the area.