New Jersey Airbnb and Short-Term Rental Regulations (2026 Guide)

New Jersey's Jersey Shore — from Asbury Park to Cape May — plus the Delaware Water Gap and proximity to New York City create one of the Northeast's strongest STR markets. Whether you already own a vacation rental in New Jersey or are evaluating your first investment, understanding the regulatory landscape is essential. STR laws in New Jersey vary significantly by city and county — and getting compliance wrong can mean fines, forced delistings, or lost income.

This guide covers New Jersey's approach to short-term rental regulation at the state level, then breaks down the rules in key markets investors and hosts need to know. Regulations as of 2026 — always verify current rules directly with your local municipality before listing.

If you'd like help navigating STR compliance in New Jersey, Awning's property management team operates in Cape May, Long Beach Island, and the Delaware Water Gap and helps hosts stay compliant while maximizing revenue.

How New Jersey Defines a Short-Term Rental

For regulatory and tax purposes, a short-term rental in New Jersey is generally defined as a residential property rented for 90 consecutive days or fewer. Any rental longer than this threshold is typically treated as a long-term rental and subject to different rules.

Does New Jersey Require a Statewide STR License?

New Jersey passed statewide STR legislation in 2021 establishing a registration framework. Local municipalities retain significant authority to regulate and restrict STRs beyond the state baseline.

New Jersey Short-Term Rental Taxes

New Jersey imposes a 6.625% state sales tax and a 5% state occupancy fee on STR income. Many shore towns add local tourism taxes. Airbnb collects state taxes automatically; local taxes vary by municipality.

Regardless of which booking platform you use, it is your responsibility as a host to ensure all applicable taxes are collected and remitted correctly. Failure to comply can result in penalties, back taxes, and potential loss of your ability to operate.

STR Regulations by City in New Jersey

Below are the key STR markets in New Jersey and their current regulatory requirements. City regulations change frequently — check with your local planning or licensing department for the most current rules before investing.

Cape May

Cape May requires STR operators to obtain a Vacation Rental License through the city. Annual inspections are required, and properties must meet life safety standards. Cape May is one of New Jersey's most regulated STR markets due to its National Historic Landmark designation.

Asbury Park

Asbury Park requires STR registration and compliance with local zoning. The city has seen rapid STR growth alongside its arts and music revival, prompting increased regulatory scrutiny and annual permit enforcement.

Long Beach Island

Long Beach Island towns (Ship Bottom, Beach Haven, Surf City) each have their own STR registration requirements. Most require annual licensing and smoke and CO detector compliance inspections before permitting occupancy.

Key Questions to Ask Before Listing an STR in New Jersey

• Does your city or county require an STR permit or license?
• Are there caps on the number of STR permits in your neighborhood or zone?
• Is your property owner-occupied or non-owner-occupied — and does that distinction affect your eligibility?
• What occupancy, noise, and parking rules apply to your specific property?
• Which taxes are you responsible for collecting and remitting vs. what the platform handles?
• Does your HOA or condo association allow short-term rentals?

The Bottom Line

New Jersey's STR regulatory environment ranges from investor-friendly rural counties to tightly regulated resort towns and urban cores. Understanding the specific rules in your target market — not just at the state level — is what determines whether your rental operates smoothly or faces costly disruptions.

Staying on top of changing regulations is one of the most valuable things a professional property manager brings to your operation. Awning manages short-term rentals in Cape May, Long Beach Island, and the Delaware Water Gap and monitors local regulatory changes so you don't have to. Reach out to learn how we can help you operate compliantly and profitably in New Jersey.