Ocean City, NJ short-term rental market report (2026)
Cape May County, New Jersey. Rules, revenue, home values, demand, climate, reach and risk, each figure with its source.
- RulesStrict (4/5)
- 4-BR typical value$1.2M
- FEMA riskRelatively Moderate
- Demand drivers within 50 mi4
- People within 300 mi66.2 million
- ClimateFour-season
Everything STR HUB holds on Ocean City, NJ in one place, in the order an investor needs it: whether you can operate, what the numbers are, why and when people come, who can reach it, and what could go wrong.
Every figure comes from a named dataset listed under Sources and method, dated September 21, 2026. Where we do not hold a figure, that part of the report is left out rather than estimated. The Opportunity Score here is partial: it was calculated without revenue data, with the cash-flow component assumed to be below average, so it can understate the market.
Can you operate in Ocean City?
| Rule | What we hold on file |
|---|---|
| Jurisdiction | City of Ocean City, NJ (Municipal Code Vol. I §5-1, Mercantile Licensing) |
| Permit or licence | Mercantile License / Rental Registration, filed with the City Clerk/Licensing Office, valid June 1–May 31, annual renewal; owner must carry at least $500,000 liability insurance naming the City as certificate holder. |
| Permit fee | $175 total for a single/duplex unit not owner-occupied and rented under 175 days ($30 mercantile fee + $145 municipal tourism assessment); 3-5 unit buildings pay $125 + $300; each additional unit adds $10; a $25 late fee applies after June 1. |
| Cap on rentals | New STR license issuance has been frozen in R-1 (single-family) and MH (mobile home) zones since January 28, 2025, extended through January 3, 2027 (a July 22, 2025 repeal referendum narrowly failed); existing 2024 R-1/MH license holders may still renew. |
| Minimum stay | 5 consecutive nights minimum for STRs in R-1 and MH zones for the 2025 and 2026 rental seasons, rising to a 31-night minimum starting January 1, 2027, which effectively bans sub-monthly STR there. |
| Lodging and sales taxes | NJ Sales Tax 6.625% + State Occupancy Fee 5%, plus Ocean City's municipal tourism assessment folded into the mercantile fee structure. |
Rules for Ocean City last verified September 20, 2026. Rules change, and a city rating does not cover HOA or deed restrictions. Confirm current requirements with the jurisdiction before you buy or list.
Which way the rules are moving
Tightening. The rules we hold report a recent or pending change.
A 31-night minimum takes effect January 1, 2027, effectively ending short-stay STRs in R-1/MH zones.
Classified from the regulation text we publish; a direction is only kept when the sentence it rests on appears word for word in that text.
The numbers
We have not verified revenue figures for this market yet.
Home values in Cape May County
Zillow Home Value Index: county-wide typical values for Cape May County, not list prices. A specific property can sit well above or below them.
What it costs to own
Screening figures, not a bill or a quote. The tax rate is a county-wide median for owner-occupied homes (U.S. Census Bureau, ACS 2018-2022); second homes and rentals are often taxed more heavily, and a purchase usually resets the assessed value. Expected annual loss is from the FEMA National Risk Index.
Housing market momentum
County-level, for-sale housing market: it says nothing directly about STR bookings. A relative ranking among tracked markets, not a forecast. Sources: Realtor.com Economic Research, U.S. Census Bureau, Zillow Home Value Index.
Why people come
4 demand drivers sit within 50 miles of Ocean City. Ordered by published attendance. Attendance appears only where a source publishes it.
Attractions
- Atlantic City Boardwalk & casinos
- When
- Year-round casino trade; beach and boardwalk peak June to August.
- Attendance
- 28,500,000 (Wikipedia (Atlantic City, New Jersey): in 2011 New Jersey's then 12 casinos — all in Atlantic City — had 28.5 million visitors. Several casinos have closed and others opened since.)
- STR angle
- Nine casinos plus a free beach bring weekenders from Philadelphia and New York all year, with concerts and conventions filling gaps. Low purchase prices attract investors, but the downbeach towns (Ventnor, Margate, Brigantine) are where family week-long rentals concentrate.
- Cape May
- When
- Summer peak, with unusually strong shoulder seasons (autumn birding, Victorian Christmas).
- STR angle
- A Victorian seaside town whose whole centre is a National Historic Landmark district, attracting an older, higher-spending visitor than the boardwalk towns. Weekly summer rentals are the norm and the season runs longer than elsewhere on the Jersey Shore.
- Rehoboth Beach boardwalk
- When
- Memorial Day to Labor Day; tax-free outlet shopping extends the shoulder seasons.
- STR angle
- Washington and Philadelphia's closest upscale beach town, with a walkable mile-long boardwalk and no sales tax. Houses within walking distance of the beach rent by the week in summer; Dewey skews younger, Lewes and Bethany quieter.
Landmarks
- Cape May Historic District (Victorian Cape May)
- When
- Summer beach season peaks; Victorian-themed fall weekends and Christmas tours extend the year.
- STR angle
- The Victorian streetscape is what separates Cape May from other Jersey Shore towns: it holds rates longer into fall and December and draws couples as well as beach families. Restored Victorians and cottages rent by the week in summer and by the weekend the rest of the year.
When they come
Four-season climate: comfortable months are spread across the year without one dominant season. 7 of 12 months have an average high between 60°F and 88°F. Warmest month: July (average high 84°F). Coldest: January (average low 31°F).
- Jan44°31°Cold
- Feb46°33°Cool
- Mar52°38°Cool
- Apr61°46°Comfortable
- May68°55°Comfortable
- Jun78°65°Comfortable
- Jul84°73°Comfortable
- Aug82°71°Comfortable
- Sep77°65°Comfortable
- Oct68°55°Comfortable
- Nov56°42°Cool
- Dec49°36°Cool
| Month | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average high (°F) | 44 | 46 | 52 | 61 | 68 | 78 | 84 | 82 | 77 | 68 | 56 | 49 |
| Average low (°F) | 31 | 33 | 38 | 46 | 55 | 65 | 73 | 71 | 65 | 55 | 42 | 36 |
| Precipitation (in) | 3.3 | 4.2 | 4.0 | 4.3 | 3.8 | 3.1 | 4.0 | 4.2 | 4.3 | 4.7 | 2.9 | 5.3 |
| Snowfall (in) | 5.0 | 3.2 | 0.4 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 | 0.3 |
| Sunshine (hours a day) | 6.3 | 6.7 | 8.3 | 9.4 | 10.7 | 11.8 | 12.3 | 10.7 | 10.0 | 7.9 | 7.9 | 6.0 |
This is climate and events, not booking data. Monthly normals are 2019-2023 averages from the Open-Meteo Historical Weather API (ERA5 reanalysis) at the market pin. We do not hold monthly occupancy or rate data for this market.
Who can reach it
Largest counties within 150 miles
| County | Population |
|---|---|
| Kings County, NY | 2,679,620 |
| Queens County, NY | 2,360,826 |
| New York County, NY | 1,645,867 |
County populations (U.S. Census Bureau, ACS 2018-2022) summed for every county whose centre lies within each straight-line radius. Straight lines are shorter than roads, so read these as generous upper bounds, not drive-time counts.
What could go wrong
| Hazard | FEMA rating | Score (0-100) |
|---|---|---|
| Coastal flooding | Very High | 99.4 |
| Hurricane | Relatively Moderate | 93.1 |
| River flooding | Relatively Moderate | 89.7 |
| Winter weather | Relatively High | 88.6 |
| Wildfire | Relatively Low | 86.4 |
| Earthquake | Relatively Low | 73.9 |
| Tornado | Relatively Low | 38.3 |
| Hail | Very Low | 4.2 |
This is a county-level index, not an insurance quote or a flood-zone determination. A coastal or wildfire-fringe rental can carry far more exposure than its county average suggests. Get property-level flood, wind and wildfire quotes before you buy.
Market context
Housing and jobs in Cape May County
U.S. Census Bureau, American Community Survey 2018-2022. Vacation-home share is housing units held for seasonal, recreational or occasional use. All three describe the whole county, not one town or neighbourhood.
What is within 15 km of the Ocean City pin
Counts of features mapped in OpenStreetMap within 15 km of the market pin. A fixed radius favours dense metros, and map coverage varies by area.
Similar markets
The 4 tracked markets whose numbers sit closest to Ocean City's. Each links to its own report.
Closest by normalised distance across the figures both markets hold (typical 4BR value, revenue, occupancy, regulation rating, vacation-home share, tourism job share, 4+ bedroom share, amenity score, population within 300 miles, comfortable months and FEMA risk score). At most 2 of the 4 come from New Jersey, so the list is not just the neighbours. Similar numbers do not mean similar rules: check each market's regulation section.
See Ocean City on the map
Open Ocean City on the National STR Map to see it against its neighbours, switch overlays and run the deal calculator on your own assumptions.
Ocean City STR questions, answered from the data
Is Airbnb legal in Ocean City?
STR HUB rates Ocean City's short-term rental rules 4/5 (Strict) on a scale from 1 (relaxed) to 5 (very strict). That rating was derived from the regulation text we hold and has not yet been reviewed by a person. Permit rule on file: Mercantile License / Rental Registration, filed with the City Clerk/Licensing Office, valid June 1–May 31, annual renewal; owner must carry at least $500,000 liability insurance naming the City as certificate holder. Cap on file: New STR license issuance has been frozen in R-1 (single-family) and MH (mobile home) zones since January 28, 2025, extended through January 3, 2027 (a July 22, 2025 repeal… Rules change, so confirm current requirements with the local jurisdiction before you buy or list.
How much does a 4-bedroom home cost in Ocean City?
The typical 4-bedroom home in Cape May County is valued at $1,235,330 (Zillow Home Value Index), and the typical home of any size at $806,250, with all-home values up 9.3% over the past year. These are county-wide typical values, not list prices.
What brings visitors to Ocean City?
4 demand drivers sit within 50 miles of Ocean City, including Atlantic City Boardwalk & casinos (28,500,000 published attendance), Cape May and Cape May Historic District (Victorian Cape May). Attendance is shown only where a source publishes it, and each driver's source is linked in the report.
What natural hazards affect Ocean City?
FEMA's National Risk Index rates Cape May County "Relatively Moderate" overall, with a score of 91.0 out of 100 (a national percentile). The highest-scoring hazards we track there are coastal flooding and hurricane. It is a county-wide index, not an insurance quote or a flood-zone determination.
When is the weather best in Ocean City?
7 of 12 months have an average high between 60°F and 88°F (April, May, June, July, August, September and October). Four-season climate: comfortable months are spread across the year without one dominant season. These are 2019-2023 climate normals, not booking data.
Sources and method
- Regulation summary and strictness rating: STR Agent HUB regulation research (official source: ocnj.us).
- Home values: Zillow Home Value Index (ZHVI), county level. Data provided by Zillow Group.
- Housing, employment and population figures: U.S. Census Bureau, American Community Survey (ACS) 5-year estimates, 2018-2022.
- Natural hazard risk: FEMA National Risk Index, county level.
- Amenity counts: © OpenStreetMap contributors.
- Climate normals: Open-Meteo Historical Weather API (CC BY 4.0), 2019-2023 averages.
- Demand drivers: each entry links its own published source in the list above.
Figures come from the STR HUB national dataset dated September 21, 2026 and this page is regenerated whenever that dataset is rebuilt. County-level figures describe Cape May County as a whole, not one street or neighbourhood. The Opportunity Score (0-100) is a screening heuristic that weighs revenue (35%), regulatory climate (25%), tourism employment (15%), nearby amenities (15%) and large-home supply (10%) relative to the other tracked markets.
Confirm before you act. Short-term rental rules change. Confirm current requirements with the jurisdiction, and work with a licensed local agent who knows which properties can legally operate. This report is screening data, not investment, legal or tax advice.
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