Jersey Shore STR Rules: Town-by-Town Permit Guide

The Jersey Shore is not a single regulatory market — it's a patchwork of municipal ordinances across roughly 40 shore towns from Sandy Hook to Cape May. New Jersey state law neither caps nor preempts local STR rules, so each town sets its own permit structure, occupancy limits, parking requirements, and noise ordinances. Investors evaluating a shore property should check the specific town code before closing — what's permitted in Wildwood may be banned a mile away in North Wildwood.

Licensing & Registration

Most shore towns now require some form of STR or Mercantile License. Wildwood: $250 annual rental license + $25/unit. Cape May: Mercantile License + transient rental endorsement, ~$200/yr. Long Beach Island towns (Beach Haven, Surf City, Harvey Cedars, etc.): each separate, fees $100–$500. Asbury Park: $250 STR registration + 6-month residency requirement post-2023 ordinance. Ocean City: long-standing permit regime, no new STR licenses for non-owner-occupied as of 2024 changes.

Lodging & Occupancy Taxes

New Jersey applies 6.625% state sales tax + 5% State Occupancy Fee on transient accommodations (≤89 days). Some municipalities (Newark, Atlantic City, Jersey City) add a 1–3% local tax — but most shore towns do not. Airbnb collects the state sales tax + occupancy fee statewide; local taxes vary. Stays of 90+ days are exempt from the occupancy fee, which is why some shore landlords pivot to seasonal (summer-only) rentals over true STR.

Penalties & Enforcement

Town-level fines range from $250–$2,000 per violation. Asbury Park's 2023 noise ordinance escalates: $250 first offense, $1,000 second, license revocation third. Sea Isle City and Ocean City have publicized enforcement crackdowns on unregistered STRs since 2023. HOA + condo restrictions on the boardwalk side of many towns are stricter than the town code itself.

Recent Changes

Multiple shore towns tightened rules in 2023–2024 after pandemic-era complaint volume. The trend: tighter occupancy limits, mandatory local-contact-within-1-hour rules, and parking permit caps. Investors should expect the regulatory direction to remain restrictive rather than permissive.

Tax Strategy for Compliant Investors

Even where Jersey Shore's rules constrain inventory, properly-licensed STR investors retain the full federal tax stack. Cost segregation accelerates depreciation, and the STR loophole can let losses offset W-2 income for materially-participating owners. See cost segregation for Airbnb properties for the playbook.

Frequently asked questions