Cape May, NJ Airbnb Market Data, Statistics, and Occupancy Rates

Cape May Short-Term Rental Market Overview

Cape May stands out as a classic beach-town market where summer revenue can be extraordinary — hosts averaged $21,793 in August alone — but the deep seasonality means winter months like January dip to just $1,062. With 269 active listings, an average daily rate of $416, and annual revenue averaging $83,334, this market rewards investors who can capitalize on a compressed but lucrative peak season. An ROI score of 63 out of 100 reflects the balance between strong summer demand and a property market where average home values sit at $1,363,419.

Key Market Statistics

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

Data sources: Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026.

Why Investors Consider Cape May

Cape May attracts investors because its iconic Jersey Shore destination status drives intense summer demand and premium nightly rates that can offset the sharp seasonal drop-off.

Expert Market Assessment

"Cape May represents an attractive but nuanced opportunity — the ROI score of 63 reflects solid seasonal demand paired with relatively high property costs. Seasonality is the defining characteristic here: revenue swings from $1,062 in January to $21,793 in August, meaning cash flow management and reserve planning are essential. Investors who select the right property size (5-bedroom and 6+ bedroom listings generate the strongest returns) and price aggressively during the June–August window can achieve meaningful annual income, but those expecting year-round consistency should temper expectations."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Cape May

Average revenue by month in Cape May

Cape May's seasonality is extreme: August leads at $21,793 in average revenue — more than 20 times January's $1,062 — with June through August accounting for the lion's share of annual income. Shoulder months like May ($6,071) and September ($7,727) offer a secondary revenue bump, but investors should plan for very lean winters.

Active Airbnb listings by property size in Cape May

Two-bedroom units dominate the supply at 76 listings, with 3-bedroom (69) and 1-bedroom (52) properties close behind, while 5-bedroom and 6+ bedroom homes total only 35 combined. The relative scarcity of larger properties could present an opportunity, especially given their significantly higher revenue potential.

Average daily rate (ADR) by property size in Cape May

ADR scales dramatically with size in Cape May — from $235 for 1-bedroom listings to $1,262 for 6+ bedroom homes, reflecting strong group and family demand willing to pay premium rates. The jump from 4-bedroom ($465) to 5-bedroom ($749) is particularly steep, suggesting a pricing sweet spot for larger beach houses.

Average RevPAN by property size in Cape May

Revenue per available night tells a compelling story: 6+ bedroom properties lead at $192 and 5-bedroom units follow at $155, while mid-sized 2-bedroom listings lag at just $51 RevPAN. Notably, 1-bedroom units punch above their weight at $87 RevPAN, likely thanks to their 37% occupancy rate — the highest of any size category.

Average occupancy rates by property size in Cape May

One-bedroom listings lead occupancy at 37%, more than double the rate of most other sizes, suggesting they attract bookings even outside peak season. Larger properties (4-bedroom and 6+ bedroom) sit at just 15% average occupancy, reflecting the highly seasonal nature of group and family travel to Cape May.

Average monthly revenue by property size in Cape May

Monthly revenue climbs steadily with bedroom count: 6+ bedroom properties average $24,512 per month — nearly four times the $6,065 earned by 1-bedroom units and over five times the $4,568 from 2-bedroom listings. The 4-bedroom and 5-bedroom categories ($9,407 and $13,743 respectively) represent a middle ground that may balance acquisition cost against revenue potential.

Average annual revenue by property size in Cape May

At $294,151 in average annual revenue, 6+ bedroom properties far outpace every other category, with 5-bedroom units earning $164,924 and 4-bedroom homes generating $112,894. Smaller configurations still contribute — 1-bedroom units average $72,784 annually — but investors seeking the strongest absolute returns should evaluate whether the premium acquisition cost of a larger Cape May property pencils out against these top-line numbers.

Most common amenities for Airbnb listings in Cape May

Parking (97%) and a full kitchen (96%) are near-universal, reflecting Cape May's car-dependent, vacation-home character. Outdoor living amenities dominate the middle tier — backyards (66%), BBQ grills (65%), patios (64%), and outdoor furniture (63%) — signaling that guests expect a complete beach-house experience, while differentiators like beach access (20%), pools (20%), and hot tubs (9%) remain relatively rare and could serve as competitive advantages.

Understanding Cape May's ROI Score: 63/100

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

Cape May's ROI score of 63 out of 100 places it in the "Attractive Opportunity" band, reflecting a market where strong seasonal demand and healthy nightly rates balance against high property prices and below-average growth trends. Above-average occupancy stability is a meaningful positive — it suggests that summer demand is reliable year after year — while the average revenue-to-price ratio and supply/demand balance indicate that returns are achievable but not exceptional without careful property selection. Investors should pair these data points with up-to-date local regulatory research and realistic off-season revenue expectations before committing capital.

Short-Term Rental Regulations in Cape May

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

Permit Requirements

Short-term rental operators in Cape May, New Jersey may need to obtain a permit or register with the city before listing a property. Investors should verify current permit requirements directly with Cape May's municipal office and the State of New Jersey's Division of Taxation.

Key Restrictions

Common restrictions in coastal New Jersey communities include occupancy limits tied to bedroom count, minimum-stay requirements (particularly during peak summer weekends), noise ordinances, parking caps per property, and potential HOA restrictions in certain neighborhoods. Some municipalities also impose seasonal or annual caps on the number of STR permits issued, so early research is essential.

Tax Obligations

Short-term rental hosts in New Jersey are generally subject to state sales tax, the state occupancy fee, and any applicable municipal tourism or lodging taxes. Many booking platforms collect and remit these taxes automatically, but hosts should confirm compliance with both Cape May and New Jersey tax authorities.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Cape May's deeply seasonal revenue pattern is likely to persist, with the bulk of annual income concentrated from June through September. Above-average occupancy stability suggests that returning vacationers and event-driven travel should keep summer bookings healthy, though investors should plan for ADR and occupancy to stay relatively flat given below-average market growth trends. Off-season strategies — such as targeting holiday weekends, birding festivals, and winter getaway travelers — could incrementally lift shoulder-month performance by an estimated 3–5%, but summer will remain the engine."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Cape May, NJ

What is the average Airbnb occupancy rate in Cape May?

The average occupancy rate for Airbnb listings in Cape May is currently 21%, which is below the New Jersey state average of 34%. This reflects Cape May's pronounced seasonality — summer months see much higher occupancy while winter months are significantly quieter. One-bedroom listings lead with 37% average occupancy, suggesting smaller units attract more consistent bookings across the year.

How much do Airbnb hosts make in Cape May?

On average, Airbnb hosts in Cape May earn approximately $83,334 per year, or about $6,944 per month based on a trailing 12-month average. Revenue varies significantly by property size: 1-bedroom units average around $72,784 annually, while 6+ bedroom properties can bring in roughly $294,151. Most of this income is concentrated in the summer months, with August alone averaging nearly $21,793.

Is Cape May a good market for Airbnb investment?

Cape May scores 63 out of 100 on Rabbu's ROI Score, placing it in the 'Attractive Opportunity' category. The market benefits from above-average occupancy stability and a solid revenue-to-price ratio, though market growth trends are currently below average. Investors willing to manage deep seasonality and target larger properties with strong summer appeal can find compelling returns, but the high average home value of $1,363,419 means acquisition costs are significant.

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

The current average daily rate in Cape May is $416, just slightly below New Jersey's $430 state average. ADR scales steeply with property size — 1-bedroom listings average $235 per night, while 6+ bedroom homes command an impressive $1,262 per night. This premium for larger properties reflects Cape May's popularity among family and group vacationers willing to pay top dollar for spacious beach houses.

Are short-term rentals legal in Cape May?

Short-term rentals generally operate in Cape May, though specific permit, registration, and zoning requirements may apply. Regulations can change, so prospective investors should consult Cape May's local government and the State of New Jersey directly to confirm current rules, including any occupancy limits, minimum-stay requirements, or permit caps that may be in effect.

When is peak season for Airbnb in Cape May?

Peak season in Cape May runs from June through August, with July and August being the strongest months. August leads with average revenue of $21,793, followed closely by July at $20,932. Revenue drops sharply after September ($7,727) and reaches its lowest point in January ($1,062). The shoulder months of May and September can still generate meaningful income — $6,071 and $7,727 respectively — but the core summer window drives the vast majority of annual earnings.

How many Airbnbs are there in Cape May?

There are currently 269 active Airbnb listings in Cape May as of April 2026. The supply is fairly distributed across property sizes, with 2-bedroom listings being the most common (76 listings), followed by 3-bedroom (69) and 1-bedroom (52) units. Larger properties of 5 bedrooms and above are less common, with only 35 combined listings in those categories.

How is Airbnb revenue calculated in Cape May?

The annual and monthly revenue figures shown for Cape May are derived from the trailing 12 months of historical booking performance for active comparable Airbnb listings in the market — they are not forward-looking projections. Rabbu averages each comparable listing's actual revenue per available night (RevPAN) by month over the past year, removes regional outliers, and rolls the remaining data up to a market-level historical average. This approach anchors the figures to what hosts have actually earned recently, while naturally reflecting seasonal peaks and slower months because each month uses its own historical performance. Individual results can vary based on property quality, pricing strategy, 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 Cape May and surrounding areas
• Occupancy rates, average daily rates, 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 inform property setup decisions

Sources and disclaimers

Rabbu proprietary analytics as of Apr, 27 2026 and Zillow Home Value Index (ZHVI) as of Mar, 17 2026. Revenue projections are estimates based on comparable properties and do not guarantee future performance. Data reflects trailing 12-month historical averages and may not capture very recent market shifts. Local regulations, permit requirements, and tax obligations can change — always verify with municipal and state authorities before investing.