Ocean City, NJ Airbnb Market Data, Statistics, and Occupancy Rates

As of Apr, 27 2026

Rabbu ROI Score

51 / 100

Ocean City presents a competitive opportunity: investor interest and demand are strong, but higher prices or tighter competition may require more selective deal sourcing.

Ocean City Short-Term Rental Market Overview

Ocean City, NJ is a classic Jersey Shore vacation market where short-term rental revenue is heavily concentrated in the summer months, with August alone averaging $16,525 per listing. With 203 active Airbnb listings and an average annual revenue of $63,190, the market offers meaningful income potential — though elevated home values averaging nearly $1.73 million mean investors need to be strategic about deal sourcing. A 119% year-over-year increase in active listings signals growing investor interest, making timing and property selection increasingly important.

Key Market Statistics

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

Key Airbnb and short-term rental market statistics.
Metric Context Value
Active Airbnb Listings As of Apr, 27 2026 203
Average Daily Rate (ADR) vs. $430 state avg. $360
Average Occupancy Rate vs. 34% state avg. 20%
RevPAN ADR * Occupancy Rate $72
Average Monthly Revenue Historical 12-month average $5,265
Average Annual Revenue Historical 12-month average $63,190

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

Why Investors Consider Ocean City

Ocean City attracts STR investors because of its deeply rooted reputation as a family-friendly beach destination that generates outsized summer revenue, though high property prices require careful underwriting.

Key investment factors

  • Peak summer months drive extraordinary nightly rates, with 5-bedroom properties commanding $674 ADR
  • Family-oriented, dry-town reputation creates a loyal repeat-visitor base that supports premium pricing
  • Larger properties (4–5 bedrooms) deliver the strongest RevPAN, reaching $88–$130 per available night
  • Growing listing supply (119% YoY growth) reflects high investor confidence in the market's fundamentals
  • Proximity to Philadelphia and other mid-Atlantic metro areas fuels reliable weekend and vacation demand

Expert Market Assessment

"Ocean City represents a competitive but selective opportunity for STR investors. The market's extreme seasonality — with July and August generating roughly half of all annual revenue — means cash flow is feast-or-famine, and investors need strong reserves to cover the November-through-March slow period when monthly revenue dips below $1,800. The ROI score of 51 out of 100 reflects a below-average revenue-to-price ratio driven by home values near $1.73 million, though the actual dollar revenue for larger properties can be substantial. Investors who source deals below the market median or target 4–5 bedroom configurations with higher RevPAN will be best positioned to generate competitive returns."

— Rabbu Market Analysis Team

Understanding Ocean City's ROI Score: 51/100

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

Factor Ocean City Performance Weight
Revenue-to-Price Ratio Below average 40%
Occupancy Stability Average 30%
Market Growth Trend Average 15%
Supply/Demand Balance Average 15%

What This Means for Investors

Ocean City's ROI score of 51 out of 100 places it in the 'Competitive Opportunity' band, reflecting strong demand and solid summer revenue offset by a below-average revenue-to-price ratio driven by home values near $1.73 million. Occupancy stability, market growth, and supply/demand balance all rate as average, meaning the fundamentals are steady but not exceptional — selective deal sourcing matters here more than in higher-scoring markets. Investors should pair this data with thorough local regulatory research and focus on property sizes (particularly 4–5 bedrooms) where RevPAN and revenue figures are strongest relative to acquisition costs.

Short-Term Rental Regulations in Ocean City

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

Permit Requirements

Ocean City, New Jersey requires short-term rental operators to obtain appropriate permits and register their properties with the city before listing them. Investors should verify current permit requirements directly with the Ocean City municipal government and Cape May County authorities, as rules can change.

Key Restrictions

Common restrictions in New Jersey shore communities like Ocean City may include occupancy limits based on property size, minimum-stay requirements during peak season, noise ordinances, parking mandates, and rules around trash collection and outdoor gatherings. HOA or condo association rules can impose additional constraints, so investors should review all applicable covenants before purchasing.

Tax Obligations

Short-term rental hosts in New Jersey are generally subject to state sales tax, a state occupancy fee, and potentially local tourism or municipal taxes. Platforms like Airbnb often collect and remit certain taxes on behalf of hosts, but operators should confirm their full tax obligations with a local accountant or the New Jersey Division of Taxation.

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

Short-Term Rental Financing for Ocean City

Financing an Airbnb investment in Ocean City requires lenders who understand STR income. Rabbu partner lenders offer:

  • DSCR Loans: Qualify based on property income, not personal income
  • Low Down Payment: As low as 10–15% for investment properties
  • Fast Closing: 21–30 day average close times
  • STR Experience: Lenders who understand vacation rental underwriting
Connect with a Ocean City Lender →

Future Outlook & Long-Term Forecast

"Over the next 12–18 months, Ocean City's short-term rental market should continue to benefit from consistent summer beach demand along the Jersey Shore, with peak-season ADRs likely holding steady or edging up 1–3% as traveler interest in family-friendly coastal destinations remains strong. Occupancy stability and market growth trend both score as average in our analysis, suggesting the market isn't accelerating rapidly but isn't deteriorating either. Investors should expect the pronounced seasonality to persist — with roughly 70–80% of annual revenue earned between May and September — and plan cash reserves accordingly for the quieter winter months."

— Rabbu Market Analysis Team

Frequently asked questions about Airbnb in Ocean City, NJ

What is the average Airbnb occupancy rate in Ocean City?
The average occupancy rate for Airbnb listings in Ocean City is currently 20%, which falls below the New Jersey state average of 34%. This lower annual figure reflects the market's intense seasonality — occupancy surges during the summer beach season and drops significantly in the off-season. Studios lead at 32% occupancy, while 3-bedroom units sit at 17%. Investors should factor this seasonal rhythm into their financial planning.
How much do Airbnb hosts make in Ocean City?
Based on trailing 12-month data, Airbnb hosts in Ocean City earn an average of $5,265 per month, translating to approximately $63,190 per year. Revenue varies dramatically by property size: studios average $30,792 annually, while 5-bedroom properties bring in roughly $143,295 and 6+ bedroom homes can reach $193,334. The bulk of this income is earned during the summer months, with August averaging $16,525 across all listings.
Is Ocean City a good market for Airbnb investment?
Ocean City scores a 51 out of 100 on Rabbu's ROI Score, placing it in the 'Competitive Opportunity' category. Strong summer demand and high nightly rates make it attractive, but average home values near $1.73 million create a below-average revenue-to-price ratio. Investors who can source properties below the market median — particularly in the 4- to 5-bedroom range where RevPAN is strongest — stand to earn compelling returns. Success here requires strategic deal sourcing and planning for seasonal cash flow gaps.
What is the average daily rate (ADR) for Airbnb in Ocean City?
The average daily rate across all Ocean City Airbnb listings is $360, which is below the New Jersey state average of $430. However, ADR scales significantly with property size: studios average $113 per night, 3-bedrooms hit $345, and 6+ bedroom properties command an impressive $1,063 per night. Larger beach houses clearly capture the premium that families and groups are willing to pay for a Jersey Shore vacation.
Are short-term rentals legal in Ocean City?
Short-term rentals do operate in Ocean City, NJ, with over 200 active Airbnb listings currently on the market. However, local regulations including permit requirements, zoning restrictions, and tax obligations may apply. We strongly recommend that prospective investors consult the City of Ocean City and Cape May County offices directly to confirm current rules before purchasing or listing a property.
When is peak season for Airbnb in Ocean City?
Peak season in Ocean City runs from June through August, with revenue climbing sharply from about $4,603 in May to $8,936 in June, $15,872 in July, and a high of $16,525 in August. September marks a rapid drop-off to $5,858, and the winter months from November through February see average revenues between $805 and $1,544. This extreme seasonality is typical of Jersey Shore beach markets, and investors should budget accordingly.
How many Airbnbs are there in Ocean City?
As of April 2026, there are 203 active Airbnb listings in Ocean City. The supply has grown 119% year-over-year, indicating a surge of investor interest in the market. Three-bedroom properties make up the largest share of inventory at 72 listings, followed by 4-bedrooms (35) and 1-bedrooms (31). Larger 6+ bedroom homes remain relatively scarce with just 7 listings.
How is Airbnb revenue calculated in Ocean City?
The annual and monthly revenue figures shown for Ocean City 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 effectively 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 Ocean City market
  • Average daily rates, occupancy rates, and RevPAN tracked over time by property size
  • Monthly and annual revenue estimates based on trailing 12-month booking performance
  • Home value data sourced from the Zillow Home Value Index (ZHVI) for investment analysis
  • Amenity prevalence data across active listings to benchmark competitive positioning

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 market conditions may have shifted since the reporting period. Local regulations, permit requirements, and tax obligations vary and should be independently verified before investing.

Next Steps

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