Avalon, NJ Airbnb Market Data, Statistics, and Occupancy Rates

Avalon Short-Term Rental Market Overview

Avalon, NJ is a premium shore market where the average daily rate of $898 more than doubles the state average of $430, reflecting its appeal as an upscale beach destination. With just 26 active Airbnb listings and average annual revenue of $135,976, the market is small and exclusive — but sky-high home values averaging $4.7 million mean investors need to source deals carefully to make the numbers work. The 124% year-over-year growth in active listings signals rising investor interest, though the market remains highly seasonal with the bulk of revenue concentrated in summer months.

Key Market Statistics

According to Rabbu market data, the Avalon short-term rental market shows:

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026.

Why Investors Consider Avalon

Avalon attracts STR investors because of its exceptionally high nightly rates and affluent vacation-rental demand, though elevated property prices require disciplined deal analysis to achieve acceptable returns.

Expert Market Assessment

"Avalon presents a competitive but narrow opportunity window for STR investors. Revenue potential is real — average annual earnings of nearly $136K per listing are impressive — yet with home values around $4.7 million, the revenue-to-price ratio sits below average, making cash-flow-positive outcomes dependent on favorable acquisition pricing or creative financing. Seasonality is pronounced: August and July alone account for roughly half of all annual revenue, while winter months dip below $2,500 on average. Investors who can tolerate a concentrated earning season and position a well-appointed property in this small, high-demand market may find it rewarding, but passive income expectations should be tempered by the capital required to enter."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Avalon

Average revenue by month in Avalon

Avalon's revenue is dramatically seasonal: August ($35,559) and July ($34,153) together account for roughly half of annual earnings, while January ($1,736) marks the low point. The nearly 20x spread between peak and off-peak months underscores the need for investors to budget around a short, intense summer earning window.

Active Airbnb listings by property size in Avalon

Supply in Avalon is concentrated in 3- to 5-bedroom homes, with 4-bedroom properties making up the largest share at 8 listings, followed by 5-bedrooms (7) and 3-bedrooms (6). The absence of smaller studio, 1-, or 2-bedroom listings suggests the market caters almost exclusively to families and groups, and there is virtually no inventory for couples or solo travelers.

Average daily rate (ADR) by property size in Avalon

Five-bedroom homes command the highest ADR at $1,169 per night, while 3-bedrooms follow at $849 and 4-bedrooms sit notably lower at $627. The pricing gap between 4- and 5-bedroom properties is substantial, suggesting that guests willing to book larger homes place a significant premium on extra space.

Average RevPAN by property size in Avalon

Five-bedroom listings deliver the strongest RevPAN at $108 per available night, roughly double the $54 for 4-bedrooms and more than double the $48 for 3-bedrooms. This makes 5-bedroom properties the clear leaders in revenue efficiency after factoring in occupancy, though investors should weigh these figures against higher acquisition and operating costs.

Average occupancy rates by property size in Avalon

Occupancy rates across all property sizes are low on an annualized basis — 4- and 5-bedroom homes average 9%, while 3-bedrooms trail at 6%. These figures reflect months of near-zero bookings in winter rather than weak summer demand, so investors should focus on peak-season occupancy when evaluating cash-flow potential.

Average monthly revenue by property size in Avalon

Four-bedroom properties lead in average monthly revenue at $11,709, edging out 5-bedrooms at $9,303 and 3-bedrooms at $7,362. The 4-bedroom segment's combination of moderate ADR and slightly higher booking volume appears to produce the most consistent monthly income across the calendar year.

Average annual revenue by property size in Avalon

On an annual basis, 4-bedroom homes generate the highest revenue at $140,512, followed by 5-bedrooms at $111,640 and 3-bedrooms at $88,353. For investors weighing return potential against property cost, the 4-bedroom segment may offer the best balance, though all sizes face the challenge of Avalon's elevated home prices.

Most common amenities for Airbnb listings in Avalon

Parking is universal (100%) across Avalon listings, and kitchen and washer access (both 96%) are near-standard — signaling that guests expect fully equipped, home-like stays. Outdoor amenities like BBQ grills (73%), patios (54%), and outdoor furniture (54%) are common differentiators, reflecting the beach-lifestyle expectations of this shore market.

Understanding Avalon's ROI Score: 39/100

Rabbu's ROI Score is a proprietary metric that evaluates short-term rental investment potential based on multiple factors.

How the ROI Score is Calculated

What This Means for Investors

Avalon's ROI score of 39 out of 100 places it in the "Competitive Opportunity" band, meaning investor demand is strong but returns require careful deal selection. The primary drag is a below-average revenue-to-price ratio — average annual revenue of roughly $136K against home values near $4.7 million makes cash-flow math challenging at market price. Occupancy stability, market growth, and supply/demand balance all score average, so pairing this data with thorough local regulatory research and creative acquisition strategies will be essential for investors targeting this premium shore market.

Short-Term Rental Regulations in Avalon

Understanding local STR regulations is essential before investing in Avalon. Here's the current regulatory landscape:

Permit Requirements

Short-term rental operators in Avalon, New Jersey may be required to obtain a rental permit or mercantile license from the borough before listing a property. Investors should verify current permit and registration requirements directly with the Borough of Avalon and the Cape May County clerk's office, as local rules can change.

Key Restrictions

Common restrictions in New Jersey shore communities can include occupancy limits based on bedroom count, minimum-stay requirements during peak summer weeks, noise and nuisance ordinances, parking mandates for larger homes, and HOA or community association rules that may restrict or prohibit short-term rentals in certain developments. Prospective hosts should confirm which of these apply in Avalon before committing to a purchase.

Tax Obligations

Short-term rental hosts in New Jersey are generally subject to the state's Sales and Use Tax as well as any applicable local occupancy or tourism taxes. Most major booking platforms collect and remit these taxes on behalf of hosts, but owners should confirm their compliance obligations with a tax professional familiar with New Jersey's STR landscape.

Regulations subject to change. Always verify with local authorities before purchasing. A Rabbu partner agent specializing in Avalon can provide current regulatory guidance.

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Avalon's short-term rental market is expected to remain intensely seasonal, with June through August generating the lion's share of annual income. ADR could hold steady or edge up 1–3% given the market's affluent guest profile, though occupancy is likely to remain in the single digits during off-peak months and may hover around 40–55% even during peak weeks. The doubling-plus of active listings year over year suggests new supply is entering the market, which could apply modest pressure to pricing and occupancy if the trend continues. Investors should plan conservatively around a 3–4 month earning window and treat shoulder-season bookings as upside rather than baseline."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Avalon, NJ

What is the average Airbnb occupancy rate in Avalon?

The current average occupancy rate for Airbnb listings in Avalon is 9%, which is well below the New Jersey state average of 34%. This reflects Avalon's highly seasonal nature — demand is concentrated in the summer months, with limited off-season bookings. Occupancy rates vary by property size, with 4- and 5-bedroom homes averaging around 9% and 3-bedroom properties closer to 6%. These figures represent the annual average across all nights, so actual summer occupancy can be considerably higher.

How much do Airbnb hosts make in Avalon?

On average, Airbnb hosts in Avalon earn approximately $11,331 per month and $135,976 per year based on trailing 12-month booking data. Revenue varies significantly by property size: 4-bedroom homes lead at roughly $140,512 annually, followed by 5-bedroom properties at $111,640 and 3-bedroom homes at $88,353. Keep in mind that the vast majority of this income is earned during the June–August peak season, with winter months contributing far less.

Is Avalon a good market for Airbnb investment?

Avalon offers strong per-night rates and solid summer demand, but it is a competitive opportunity rather than a slam-dunk. With an ROI score of 39 out of 100, the market's below-average revenue-to-price ratio — driven by home values averaging $4.7 million — means investors must source deals selectively to achieve attractive returns. The upside lies in premium ADR ($898), a tiny supply of just 26 active listings, and an affluent guest base. Success here typically depends on buying at the right price, offering a top-tier guest experience, and budgeting around a 3-month peak earning season.

What is the average daily rate (ADR) for Airbnb in Avalon?

The average daily rate for Airbnb listings in Avalon is $898, which is significantly higher than the New Jersey state average of $430. ADR varies by property size: 5-bedroom homes command the highest rates at $1,169 per night, 3-bedroom properties average $849, and 4-bedroom listings come in at $627. These premium rates reflect Avalon's positioning as an upscale shore destination.

Are short-term rentals legal in Avalon?

Short-term rentals do operate in Avalon, NJ, but hosts may be required to obtain local permits or licenses. Regulations in New Jersey shore towns can include occupancy limits, parking requirements, noise ordinances, and tax collection obligations. We recommend checking with the Borough of Avalon directly and consulting a local attorney or property manager to ensure full compliance before listing a property.

When is peak season for Airbnb in Avalon?

Peak season in Avalon runs from June through August, with August generating the highest average revenue at $35,559 per listing, followed closely by July at $34,153 and June at $19,227. September serves as a productive shoulder month at $12,608 on average. The off-season — roughly November through March — sees monthly revenues drop below $4,000, making this one of the most seasonally concentrated STR markets in New Jersey.

How many Airbnbs are there in Avalon?

As of April 2026, there are 26 active Airbnb listings in Avalon. The supply is concentrated among larger properties: 8 listings have 4 bedrooms, 7 have 5 bedrooms, and 6 have 3 bedrooms. Year-over-year listing growth stands at 124%, indicating that new hosts are entering this market at a notable pace despite the high cost of entry.

How is Airbnb revenue calculated in Avalon?

The annual and monthly revenue figures shown for Avalon are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not a forward-looking projection. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and aggregate the results into a market-level historical average. Because each month uses its own historical performance data, seasonal peaks and slower months are naturally reflected. Individual host results can vary based on property quality, pricing strategy, location within Avalon, and operational management.

About Rabbu Market Data

Rabbu provides Airbnb and short-term rental market data and statistics across the United States. Our mission is to empower investors with accurate insights and easy-to-use tools, so they can confidently identify and act on the best opportunities in the Airbnb market.

What this data includes

• Regularly updated active Airbnb and STR listing counts for the Avalon market
• Average daily rate, occupancy, and RevPAN trends across property sizes
• Monthly and annual revenue metrics based on trailing 12-month booking data
• Home value estimates sourced from the Zillow Home Value Index (ZHVI)
• Amenity prevalence data across active listings to benchmark guest expectations

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Apr, 27 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month averages and current snapshots as of April 2026; market conditions may have shifted since the last update. Local regulations, tax rules, and permit requirements are subject to change — investors should verify all compliance obligations before purchasing or listing a property.