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

Highlands Short-Term Rental Market Overview

Highlands, NJ is a compact coastal market along the Sandy Hook Bay that draws strong seasonal demand, particularly during summer months when monthly revenues can exceed $12,000. With just 20 active Airbnb listings and an average annual revenue of $59,143, the market offers meaningful earning potential for well-positioned properties. An 85% year-over-year growth in active listings signals rising investor interest, though the market's small scale keeps competition manageable for now.

Key Market Statistics

According to Rabbu market data, the Highlands 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 Highlands

Highlands appeals to STR investors because of its coastal location, concentrated supply, and summer revenue potential that can carry much of the year's income in just a few months.

Expert Market Assessment

"Highlands presents an attractive opportunity for investors comfortable with pronounced seasonality. August leads the revenue calendar at $12,981 per month on average, while February dips to just $1,024—a spread that underscores the market's beach-driven demand cycle. The ROI score of 65 out of 100 reflects a healthy balance between revenue potential and property values, with average home values sitting at $884,745. For investors who can weather quieter winter months, the concentrated summer earnings and limited competition create a compelling entry point."

— Rabbu Market Analysis Team

Key Airbnb Metrics & Trends in Highlands

Average revenue by month in Highlands

Highlands exhibits extreme seasonality, with August peaking at $12,981 and February bottoming out at just $1,024—a roughly 12:1 spread. The lucrative June-through-September window accounts for the lion's share of annual income, making summer performance critical for investors evaluating this market.

Active Airbnb listings by property size in Highlands

Supply is evenly split across 1-bedroom (5), 2-bedroom (6), and 3-bedroom (5) listings, totaling just 20 active properties. This balanced distribution means no single property size dominates, and the overall scarcity of inventory could benefit new entrants regardless of configuration.

Average daily rate (ADR) by property size in Highlands

Two-bedroom units command the highest ADR at $277, slightly above 3-bedrooms at $265, while 1-bedrooms come in at $192. The relatively narrow gap between 2- and 3-bedroom rates suggests that stepping up to a larger property doesn't necessarily yield a proportional pricing premium in this market.

Average RevPAN by property size in Highlands

One-bedroom properties lead in RevPAN at $74, outperforming both 2-bedrooms ($60) and 3-bedrooms ($59) thanks to their significantly higher occupancy rates. For investors prioritizing consistent nightly yield over total revenue, smaller units deliver the strongest per-night returns.

Average occupancy rates by property size in Highlands

One-bedroom listings achieve 39% occupancy—nearly double that of 2-bedroom (22%) and 3-bedroom (23%) units. This higher fill rate suggests 1-bedrooms attract a broader range of guests year-round, offering more stable cash flow compared to larger properties that lean heavily on peak-season demand.

Average monthly revenue by property size in Highlands

Three-bedroom properties lead monthly revenue at $4,603, followed by 1-bedrooms at $3,703 and 2-bedrooms at $3,051. The 3-bedroom advantage comes from higher nightly rates compensating for lower occupancy, while 1-bedrooms maintain respectable revenue through more consistent bookings.

Average annual revenue by property size in Highlands

Annually, 3-bedroom listings earn the most at $55,238, with 1-bedrooms generating $44,444 and 2-bedrooms trailing at $36,614. Investors weighing acquisition costs against revenue potential may find 1-bedrooms offer the most favorable ratio given their lower entry price and competitive annual earnings.

Most common amenities for Airbnb listings in Highlands

Parking and a full kitchen are universal (100%) across Highlands listings, reflecting baseline guest expectations for a coastal getaway destination. Outdoor-oriented amenities—backyards (85%), BBQ grills (75%), and patios (70%)—are also highly prevalent, signaling that guests prioritize outdoor living space, while beach access (45%) and waterfront positioning (40%) serve as premium differentiators.

Understanding Highlands's ROI Score: 65/100

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

Highlands earns a 65 out of 100 ROI score, placing it in the 'Attractive Opportunity' band. The score reflects average revenue-to-price ratios and occupancy stability, balanced by above-average market growth trends that indicate increasing demand in the area. Investors should pair this score with local regulatory research and seasonal cash-flow modeling to fully assess whether the market aligns with their investment strategy.

Short-Term Rental Regulations in Highlands

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

Permit Requirements

The Borough of Highlands, New Jersey may require short-term rental operators to obtain a permit or register their property before listing on platforms like Airbnb. Investors should verify current requirements directly with the Highlands municipal office and the State of New Jersey's Division of Taxation.

Key Restrictions

Common STR restrictions in New Jersey communities can include occupancy limits based on bedroom count, minimum stay requirements, noise ordinances, parking mandates, and potential HOA restrictions. Some municipalities also impose caps on the number of STR permits issued, so it's worth confirming whether Highlands has any such limitations before purchasing.

Tax Obligations

Short-term rental operators in New Jersey are generally subject to the state's Sales and Use Tax as well as local occupancy or tourism taxes. Platforms like Airbnb often collect and remit some of these taxes on behalf of hosts, but operators should confirm their full obligations with a tax professional.

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

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Highlands is expected to continue benefiting from above-average market growth trends, with ADR likely holding in the $340–$360 range as supply gradually increases. Summer peak revenues should remain robust given the area's proximity to Sandy Hook beaches, while winter months will likely see occupancy stay in the low-teens percentage range. Investors entering now may capture favorable positioning before supply further expands, though seasonal revenue swings mean cash-flow planning through the off-season is essential."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Highlands, NJ

What is the average Airbnb occupancy rate in Highlands?

The average Airbnb occupancy rate in Highlands is currently 23%, which falls below the New Jersey state average of 34%. This reflects the market's strong seasonality—summer months drive the bulk of bookings while winter sees significantly less activity. Among property sizes, 1-bedroom units perform best with 39% occupancy, while 2- and 3-bedroom properties average 22–23%.

How much do Airbnb hosts make in Highlands?

Airbnb hosts in Highlands earn an average of $4,928 per month and approximately $59,143 per year based on trailing 12-month booking data. Revenue varies significantly by season, with peak summer months like July and August generating over $12,000 monthly, while winter months may bring in around $1,000–$1,700. Three-bedroom properties tend to earn the most annually at $55,238, while 1-bedrooms generate about $44,444 per year.

Is Highlands a good market for Airbnb investment?

Highlands earns an ROI score of 65 out of 100, classified as an 'Attractive Opportunity.' The market benefits from above-average growth trends and a manageable supply of just 20 active listings. Investors should be prepared for heavy seasonality—summer months drive the majority of annual income—but the coastal location and limited competition create solid earning potential for well-managed properties. Pairing this data with local regulatory research and a cash-flow plan that accounts for slower winter months is recommended.

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

The average daily rate for Airbnb listings in Highlands is $349, which is below the New Jersey state average of $430. ADR varies by property size: 1-bedroom units average $192, 2-bedrooms come in at $277, and 3-bedrooms average $265. The slightly lower ADR compared to the state average reflects the market's mix of property sizes and its position as a more accessible Jersey Shore destination.

Are short-term rentals legal in Highlands?

Short-term rentals operate in Highlands, NJ, as evidenced by 20 active Airbnb listings in the market. However, local regulations can change, and the Borough of Highlands or Monmouth County may have specific permitting, zoning, or registration requirements. Investors should contact the Highlands municipal government and consult with a local real estate attorney to confirm current rules before listing a property.

When is peak season for Airbnb in Highlands?

Peak season in Highlands runs from June through August, with July and August being the strongest months. August tops the chart at $12,981 in average monthly revenue, closely followed by July at $12,398. September also performs well at $6,088, serving as a shoulder season. The off-peak period stretches from November through March, with February being the slowest month at $1,024 in average revenue.

How many Airbnbs are there in Highlands?

There are currently 20 active Airbnb listings in Highlands as of April 2026. The supply is fairly evenly distributed across property sizes, with 5 one-bedroom listings, 6 two-bedroom listings, and 5 three-bedroom listings. Notably, active listings have grown 85% year-over-year, indicating rising investor and host interest in this coastal market.

How is Airbnb revenue calculated in Highlands?

The annual and monthly revenue figures for Highlands 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. We average each comparable listing's actual revenue per available night (RevPAN) by month over the past year, remove regional outliers, and roll the results 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, since each month uses its own historical performance data. Individual results can vary based on property quality, pricing strategy, and how actively the listing is managed.

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 Highlands, NJ market
• Average daily rates, occupancy rates, and RevPAN metrics by property size
• Monthly and annual revenue trends based on trailing 12-month booking data
• Popular amenity prevalence across active listings
• Home value data sourced from the Zillow Home Value Index (ZHVI)

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 as of April 2026 and may not capture very recent market shifts. Local regulations, permit requirements, and tax obligations can change; investors should verify current rules with municipal authorities before purchasing.