The Jersey Shore has long been a top destination for vacationers and real estate investors alike. From Sandy Hook to Cape May, its vibrant beaches and iconic communities draw travelers all summer. But when it comes to running an Airbnb or other short-term rental (STR), choosing the right town can make all the difference in both compliance and profitability.

This guide explores the latest Airbnb regulations across popular Jersey Shore towns as of 2025 and highlights which communities offer the friendliest climate for hosts, alongside great investment returns.

Understanding New Jersey’s Short-Term Rental Landscape

Regulations for short-term rentals in New Jersey are set locally. That means each beach town decides its own licensing, occupancy, and enforcement policies.

• The state requires property owners to collect sales and occupancy taxes from guests.
• Most municipalities add their own requirements, such as local permits, annual inspections, and safety standards.

As a result, even neighboring shore towns can offer very different experiences for property owners. One may welcome Airbnbs as a key part of the local economy, while another may restrict them to safeguard full-time housing options.

Airbnb-Friendly Jersey Shore Towns

Here are some of the most STR-friendly coastal communities, based on current ordinances and investor feedback in 2025.

Seaside Heights – Rental-Friendly and Straightforward

Seaside Heights has built a reputation for welcoming vacation rentals. The borough requires permits and routine inspections but supports summer STRs through transparent, predictable rules. With clear occupancy and parking guidelines, investors can expect a stable regulatory environment and busy peak seasons.

Belmar – Flexible for Hosts

Belmar’s relaxed approach makes it a favorite for hosts who want to rent with minimal hassle. Weekly rentals thrive here, and apart from taxes, hosts face little red tape. This allows investors to start renting quickly and maximize earnings over the summer.

Seaside Park – Relaxed and Rewarding

Seaside Park offers a laid-back environment for STRs. Regulations are light, focusing mostly on noise and parking. With strong seasonal demand and little administrative overhead, many hosts report high occupancy rates and repeat visitors.

Manasquan & Brielle – Suburban Ease

These towns aren’t restrictive. Operating under broader county guidance, they allow low-density rentals that fit comfortably into residential neighborhoods. While summer seasons are shorter, property values remain steady, and regulatory headaches are rare.

Asbury Park – Big Returns, Clear Limits

Asbury Park’s rules are more selective: only owner-occupied properties are eligible for short-term rental permits. Although this limits full-time investment, it means lower competition for those who qualify, and strong nightly revenue due to the city’s enduring popularity with tourists.

Moderately Regulated Communities

Certain Jersey Shore towns permit STRs but impose extra requirements. These don’t necessarily make investing unprofitable, just be aware of the added steps.

Ocean City – New Local Tax

In July 2025, Ocean City began charging an extra 3% tax on all short-term rentals booked on platforms like Airbnb and Vrbo. Alongside the state’s existing taxes, this affects margins. Still, the town remains a hot spot, especially for families, and well-run properties continue to perform during the summer peak.

Monmouth Beach – Structured but Stable

Expect to secure a rental license, pass annual inspections, and remain current on taxes in Monmouth Beach. These steps add some work but also ensure licensed properties stand out and retain consistent value.

Red Bank – Urban Vibe, More Control

Red Bank requires annual permits for STRs, which must be owner-occupied. Ideal for those wanting year-round bookings linked to city events and entertainment rather than beach vacations.

Towns with Tight Restrictions

Not all Jersey Shore towns welcome short-term rentals. New Jersey is one of the more regulated STR markets in the U.S., with some municipalities opting for bans or heavy restrictions.

• Urban areas like Hoboken and Jersey City require full permitting and zoning checks, making entry harder for casual investors.
• Smaller towns such as Lavallette and Bradley Beach have set strict caps or outright bans on new STR licenses in recent years.

It’s critical to review the most recent municipal codes before purchasing, as even policy updates within a single block can impact an investment’s viability.

Finding the Right Balance

The best opportunities for investors aren’t always in the towns with the loosest rules. Modern success in the short-term rental market is all about balance.

• Overly lenient towns risk backlash, from residents and legislators.
• Strict markets may increase property values but limit your revenue potential.

Today, Seaside Heights and Seaside Park stand out for their supportive but sensible approach. Both communities remain open to STRs, while upholding safety and quality-of-life standards. This provides a fair playing field for responsible hosts and satisfies both guests and locals.

Essential Tips for STR Investors

• Thoroughly check municipal regulations before closing on any investment.
• Plan your budget to factor in all state and local taxes, which include sales and occupancy taxes, and sometimes extra city or borough levies.
• Maintain up-to-date inspections and required local contacts for legal compliance.
• List your property on multiple platforms to maximize bookings, relying on both major sites and direct bookings.

Takeaway for Shore Investors

As of 2025, the Jersey Shore offers strong opportunities for Airbnb hosts willing to be diligent and compliant. Well-informed investors can find the best balance of regulation and returns in towns like Seaside Heights, Belmar, Seaside Park, and Asbury Park.

Each community has its own pros and cons, but education and planning go a long way toward a profitable and sustainable investment.

How Breezy Beach Stays Can Help

Breezy Beach Stays specializes in helping clients identify, purchase, and manage vacation rentals in the Jersey Shore’s most lucrative and regulation-friendly towns. Whether it’s regulatory advice, local knowledge, or turnkey management, our team makes owning a vacation rental simple and profitable.

Looking to buy, manage, or grow your rental portfolio? Reach out to Breezy Beach Stays for the best opportunities at the Shore this year.