New Jersey is home to many thriving short-term rental markets, but identifying the top-performing cities can be overwhelming, especially when combing through data from countless locations across the state.
To simplify this process, we analyzed data from markets statewide and compiled a list of the top 20 cities for investors and landlords seeking potentially high-return rental properties in the coming year.
As always, we recommend thorough underwriting and analysis of any prospective property and a review of local short-term rental regulations before making any investment decisions.
How We Created This List
First, we looked at all Airbnb listings in New Jersey that met the following criteria as of January 2025:
- Average Rating: 4.8 stars and above
- Guest Review Count: Minimum of 10
- Average Daily Rate: $1 (minimum) to $2,000 (maximum)
- Occupancy Rate: 1% (minimum) to 99% (maximum)
- Property Size: 1 to 10 bedrooms
- Property Type: Entire homes
We did this to eliminate Airbnb listings from our analysis that fall outside of what we consider "realistic" situations. This left us with a total of 4,019 Airbnb listings across the state of New Jersey to work with.
Next, we grouped these listings by city and eliminated markets that didn't have at least 75 Airbnb listings meeting the above criteria. We took this step to avoid outlier cities we felt didn't have enough data to be considered at this current time. This left us with 20 cities in New Jersey to rank.
Then, we needed to arrive at a gross yield number for each of our remaining cities in order to create our rankings. We did this by taking the average annual Airbnb revenue for each city and combining it with the cities median property value (from Zillow as of December 2024) to calculate our gross yield for each city.
Finally, we ordered the cities by highest gross yield.
The Top 20 STR Markets in New Jersey
1. Villas, NJ
Villas, NJ, is an emerging hotspot for real estate investing, featuring a promising short-term rental market. Nestled along the Delaware Bay, it draws tourists with its serene beaches and proximity to attractions like Cape May and the Wildwoods. Sports enthusiasts enjoy local events and community leagues. The housing market offers attractive vacation homes perfect for Airbnb hosts seeking steady cash flow. Annual festivals and artisan markets also entice visitors year-round, making Villas a good return for investors keen on rental income from short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 16.0%
- Average Property Value: $491,911 (as of December 2024)
- Average Annual Revenue: $78,566 (past 12 months)
- Average Occupancy Rate: 40% (past 12 months)
- Qualifying Airbnbs: 216 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 82%
Find Airbnbs For Sale in Villas, NJ →
2. Atlantic City, NJ
Atlantic City, NJ is a vibrant hub for short-term rental properties, offering real estate investors enticing opportunities in 2025. Known for its iconic boardwalk and bustling casinos, this seaside city attracts tourists seeking entertainment and relaxation. The Steel Pier and Absecon Lighthouse are must-see attractions, while sports enthusiasts can enjoy events at Bader Field. The thriving short-term rental market offers good returns and consistent cash flow, making it one of the best places for real estate investing in vacation homes and Airbnb ventures.
Key STR Metrics:
- Average Gross Yield: 12.6%
- Average Property Value: $336,729 (as of December 2024)
- Average Annual Revenue: $42,461 (past 12 months)
- Average Occupancy Rate: 27% (past 12 months)
- Qualifying Airbnbs: 273 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 63%
Find Airbnbs For Sale in Atlantic City, NJ →
3. Point Pleasant Beach, NJ
Point Pleasant Beach, NJ, is a prime spot for short-term rental properties, attracting both real estate investors and tourists alike. With its renowned boardwalk, Jenkinson's Aquarium, and pristine beaches, visitors are drawn to this vibrant location. The town hosts exciting events like seafood festivals and fireworks, enhancing tourism year-round. As part of a strong vacation rentals market, investing in this area's vacation homes promises good return and cash flow potential, making it a top choice for Airbnb hosts and rental property investors.
Key STR Metrics:
- Average Gross Yield: 10.1%
- Average Property Value: $1,415,480 (as of December 2024)
- Average Annual Revenue: $143,597 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 98 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 70%
Find Airbnbs For Sale in Point Pleasant Beach, NJ →
4. Cape May, NJ
Cape May, NJ, renowned for its charming Victorian architecture and pristine beaches, is a hotspot for short-term rental properties. Its vibrant tourism scene, bolstered by attractions like the Cape May Lighthouse and Washington Street Mall, draws tourists year-round. The town hosts popular events like the Cape May Music Festival, enticing thousands of visitors. Real estate investors can find lucrative cash flow opportunities, as vacation rentals in this area promise a good return in the thriving short-term rental market.
Key STR Metrics:
- Average Gross Yield: 9.7%
- Average Property Value: $1,229,933 (as of December 2024)
- Average Annual Revenue: $118,716 (past 12 months)
- Average Occupancy Rate: 42% (past 12 months)
- Qualifying Airbnbs: 362 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 112%
Find Airbnbs For Sale in Cape May, NJ →
5. Asbury Park, NJ
Asbury Park, NJ, is a vibrant destination ideal for real estate investors eyeing the short-term rental market. Known for its iconic beachfront and lively boardwalk, it attracts tourists year-round. Visitors flock for the musical heritage centered around The Stone Pony, pristine beaches, and cultural festivals. The appealing housing market offers lucrative opportunities for vacation homes and vacation rentals, promising good return and cash flow. As a thriving hub for tourism, Asbury Park remains one of the best places for real estate investing in short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 8.7%
- Average Property Value: $1,033,130 (as of December 2024)
- Average Annual Revenue: $90,094 (past 12 months)
- Average Occupancy Rate: 38% (past 12 months)
- Qualifying Airbnbs: 101 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 85%
Find Airbnbs For Sale in Asbury Park, NJ →
6. West New York, NJ
West New York, NJ, presents a vibrant short-term rental market for savvy real estate investors seeking good returns. Nestled along the Hudson River, it offers breathtaking views of New York City, enticing tourists and Airbnb guests alike. Visitors enjoy proximity to top attractions like Waterfront Park and the bustling cultural scene in nearby Manhattan. The annual local festivals and minor league sports events add to its charm, making West New York a hotspot for vacation rentals and vacation homes, promising lucrative rental income for the smart Airbnb host.
Key STR Metrics:
- Average Gross Yield: 8.6%
- Average Property Value: $747,917 (as of December 2024)
- Average Annual Revenue: $64,087 (past 12 months)
- Average Occupancy Rate: 60% (past 12 months)
- Qualifying Airbnbs: 93 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 135%
Find Airbnbs For Sale in West New York, NJ →
7. Vernon, NJ
Vernon, NJ, renowned for its picturesque landscapes, is an emerging hotspot in the short-term rental market. Nestled in the Appalachian Mountains, it's a magnet for outdoor enthusiasts with attractions like Mountain Creek Resort offering skiing, snowboarding, and mountain biking. Real estate investors eye Vernon for vacation homes due to its year-round appeal, including seasonal events like the annual Harvest Festival. Thanks to its abundant activities and scenic beauty, Vernon is fast becoming one of the best places for investment property with promising rental income potential.
Key STR Metrics:
- Average Gross Yield: 8.3%
- Average Property Value: $437,774 (as of December 2024)
- Average Annual Revenue: $36,287 (past 12 months)
- Average Occupancy Rate: 28% (past 12 months)
- Qualifying Airbnbs: 100 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 198%
Find Airbnbs For Sale in Vernon, NJ →
8. Bayonne, NJ
Bayonne, NJ offers a vibrant short-term rental market ideal for real estate investors seeking high rental income from vacation homes. Nestled beside the picturesque Hudson River, Bayonne boasts attractions like the Staten Island Ferry and Liberty State Park, enticing tourists year-round. Sports enthusiasts flock to events at the Prudential Center, while the Bayonne Jazz Festival draws music lovers. With its convenient location near NYC, Bayonne is one of the best places for Airbnb hosts to capitalize on strong tourism demand, promising a good return on investment properties.
Key STR Metrics:
- Average Gross Yield: 6.9%
- Average Property Value: $707,536 (as of December 2024)
- Average Annual Revenue: $48,849 (past 12 months)
- Average Occupancy Rate: 51% (past 12 months)
- Qualifying Airbnbs: 94 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 134%
Find Airbnbs For Sale in Bayonne, NJ →
9. Seaside Heights, NJ
Seaside Heights, NJ, offers a vibrant short-term rental market ideal for real estate investors seeking good returns. Known for its iconic boardwalk and lively atmosphere, this destination attracts tourists year-round with attractions like Casino Pier and Breakwater Beach. Events such as the Annual Polar Bear Plunge and beach concerts draw crowds, making it a top choice for vacation homes and Airbnb hosts aiming to maximize rental income. The thriving tourism scene ensures a steady flow of visitors, enhancing the potential for cash flow from investment properties.
Key STR Metrics:
- Average Gross Yield: 6.6%
- Average Property Value: $1,076,861 (as of December 2024)
- Average Annual Revenue: $71,600 (past 12 months)
- Average Occupancy Rate: 32% (past 12 months)
- Qualifying Airbnbs: 277 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 103%
Find Airbnbs For Sale in Seaside Heights, NJ →
10. Wildwood, NJ
Wildwood, NJ is a beach lover's paradise, renowned for its sprawling sandy beaches and iconic Boardwalk, making it a prime destination for short-term rental properties. The vibrant tourism scene offers something for every visitor, from thrilling amusement parks to classic Doo-Wop architecture. With annual events like the Wildwood International Kite Festival and the National Marbles Tournament, it attracts thousands of tourists eager for unique experiences. Real estate investors seeking good return from vacation rentals will find Wildwood a lucrative market with promising rental income potential.
Key STR Metrics:
- Average Gross Yield: 6.4%
- Average Property Value: $861,897 (as of December 2024)
- Average Annual Revenue: $55,267 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 589 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 84%
Find Airbnbs For Sale in Wildwood, NJ →
11. Newark, NJ
Newark, NJ, is a vibrant destination perfect for vacation homes and short-term rental properties. With attractions like the Newark Museum of Art and the Prudential Center, home to the New Jersey Devils, it's a hub for sports and culture. Annual events like the Newark Arts Festival draw tourists, boosting the short-term rental market. As tourism thrives, real estate investors find lucrative opportunities for good returns and cash flow. Airbnb hosts cater to visitors seeking rental income with easy access to NYC, making Newark one of the best places for real estate investing in 2025.
Key STR Metrics:
- Average Gross Yield: 6.2%
- Average Property Value: $586,871 (as of December 2024)
- Average Annual Revenue: $36,347 (past 12 months)
- Average Occupancy Rate: 31% (past 12 months)
- Qualifying Airbnbs: 249 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 100%
Find Airbnbs For Sale in Newark, NJ →
12. Jersey City, NJ
Jersey City, NJ, a vibrant hub for tourists and real estate investors, is renowned for its thriving short-term rental market. With attractions like Liberty State Park offering stunning views of the NYC skyline and the culturally rich neighborhoods housing artisanal shops and dining, it's a magnet for visitors. Sports enthusiasts enjoy proximity to NYC teams and events. The city hosts lively cultural festivals year-round, ensuring a constant stream of airbnb guests. With its dynamic tourism scene, Jersey City offers promising opportunities for rental income and investment property.
Key STR Metrics:
- Average Gross Yield: 5.9%
- Average Property Value: $956,226 (as of December 2024)
- Average Annual Revenue: $56,270 (past 12 months)
- Average Occupancy Rate: 53% (past 12 months)
- Qualifying Airbnbs: 369 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 110%
Find Airbnbs For Sale in Jersey City, NJ →
13. Elizabeth, NJ
Elizabeth, NJ, an emerging short-term rental market, captivates tourists with its rich history and vibrant culture. Home to the globally recognized Mills at Jersey Gardens, this shopping haven draws thousands of visitors annually. Elizabeth's proximity to Newark Liberty International Airport makes it ideal for vacation rentals, offering airbnb hosts a robust opportunity for rental income. With annual events like the Portugal Day Festival and the Elizabeth Avenue Festival, the city promises a dynamic experience for guests, enticing real estate investors seeking good returns in investment properties.
Key STR Metrics:
- Average Gross Yield: 5.7%
- Average Property Value: $618,224 (as of December 2024)
- Average Annual Revenue: $35,313 (past 12 months)
- Average Occupancy Rate: 36% (past 12 months)
- Qualifying Airbnbs: 75 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 134%
Find Airbnbs For Sale in Elizabeth, NJ →
14. Ocean City, NJ
Ocean City, NJ is a premier destination for real estate investors seeking lucrative short-term rental properties. Known for its family-friendly atmosphere, the city boasts a vibrant boardwalk, pristine beaches, and attractions like the Wonderland Pier. With events such as the Ocean City Pops concerts and the annual Fall Block Party, there's year-round appeal for tourists. This dynamic vacation rental market offers investors a good return, making it one of the best places for vacation homes and Airbnb hosts looking to maximize rental income through tourism and steady guest flow.
Key STR Metrics:
- Average Gross Yield: 5.6%
- Average Property Value: $1,624,352 (as of December 2024)
- Average Annual Revenue: $90,307 (past 12 months)
- Average Occupancy Rate: 37% (past 12 months)
- Qualifying Airbnbs: 263 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 88%
Find Airbnbs For Sale in Ocean City, NJ →
15. Brigantine, NJ
Brigantine, NJ, is a prime spot for vacation homes, attracting tourists with its pristine beaches and proximity to Atlantic City. This coastal gem offers a robust short-term rental market, ideal for real estate investors seeking good returns. Key attractions include the Brigantine Lighthouse and the Marine Mammal Stranding Center, which draw visitors year-round. Popular events like the Brigantine Sandcastle Contest add to its allure, making it a hot spot for Airbnb hosts aiming for strong rental income and cash flow.
Key STR Metrics:
- Average Gross Yield: 5.5%
- Average Property Value: $1,024,080 (as of December 2024)
- Average Annual Revenue: $56,149 (past 12 months)
- Average Occupancy Rate: 34% (past 12 months)
- Qualifying Airbnbs: 239 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 56%
Find Airbnbs For Sale in Brigantine, NJ →
16. Ventnor City, NJ
Ventnor City, NJ, is a prime spot for real estate investors targeting the short-term rental market. With its beautiful beaches, proximity to Atlantic City, and attractions like the Ventnor Pier and Boardwalk, it's a tourist magnet. Events such as the annual Surf Fest and city-sponsored concerts draw visitors year-round, making vacation rentals a lucrative option. As an Airbnb host here, expect consistent rental income and good return on investment, thanks to the thriving tourism and diverse housing market that attracts guests seeking relaxation and recreation.
Key STR Metrics:
- Average Gross Yield: 5.4%
- Average Property Value: $1,019,101 (as of December 2024)
- Average Annual Revenue: $55,449 (past 12 months)
- Average Occupancy Rate: 33% (past 12 months)
- Qualifying Airbnbs: 114 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 69%
Find Airbnbs For Sale in Ventnor City, NJ →
17. Hoboken, NJ
Hoboken, NJ, is a thriving hub for short-term rental investments, offering real estate investors a vibrant market with great potential for cash flow. Nestled along the Hudson River, it boasts stunning views of the Manhattan skyline and attractions like the Hoboken Waterfront Walkway and Pier A Park. Known for its lively arts scene and diverse culinary experiences, Hoboken also hosts events like the Hoboken Arts & Music Festival. With easy access to NYC and a strong sports culture, thanks to its proximity to MetLife Stadium, Hoboken's tourism and short-term rental properties promise lucrative rental income for savvy real estate investors.
Key STR Metrics:
- Average Gross Yield: 5.3%
- Average Property Value: $1,293,220 (as of December 2024)
- Average Annual Revenue: $68,985 (past 12 months)
- Average Occupancy Rate: 63% (past 12 months)
- Qualifying Airbnbs: 120 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 114%
Find Airbnbs For Sale in Hoboken, NJ →
18. Beach Haven, NJ
Beach Haven, NJ, is a prime location for vacation rentals, known for its beautiful beaches and vibrant attractions. With its charming historic district, Fantasy Island Amusement Park, and the annual Chowderfest, Beach Haven draws tourists year-round. The short-term rental market here offers lucrative opportunities for real estate investing, attracting real estate investors seeking good returns. Airbnb hosts benefit from the area's high tourism demand, ensuring rental income and positive cash flow. This scenic destination is ideal for investment property in the vacation homes sector.
Key STR Metrics:
- Average Gross Yield: 5.1%
- Average Property Value: $2,321,039 (as of December 2024)
- Average Annual Revenue: $117,895 (past 12 months)
- Average Occupancy Rate: 36% (past 12 months)
- Qualifying Airbnbs: 203 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 84%
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19. Belmar, NJ
Belmar, NJ is a prime spot for real estate investing, notably in vacation rentals. With its pristine beaches, vibrant boardwalk, and proximity to top attractions like the historic Sea Girt Lighthouse, it's no wonder the short-term rental market is thriving. Visitors can enjoy events such as the Belmar Seafood Festival and Belmar Pro Surfing Contest. Whether as an Airbnb host or an investor looking for rental income, the summer influx of tourists ensures a good return. This dynamic town's rental properties promise enticing cash flow for real estate investors.
Key STR Metrics:
- Average Gross Yield: 4.0%
- Average Property Value: $1,695,480 (as of December 2024)
- Average Annual Revenue: $67,616 (past 12 months)
- Average Occupancy Rate: 40% (past 12 months)
- Qualifying Airbnbs: 99 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 85%
Find Airbnbs For Sale in Belmar, NJ →
20. Princeton, NJ
Princeton, NJ, is a vibrant hub for short-term rental properties, offering enticing opportunities for real estate investors. Known for its prestigious Princeton University, the town attracts thousands of visitors eager to explore its historic architecture and cultural attractions like the Princeton University Art Museum. Sports enthusiasts flock to the Princeton Tigers' games, while events like Communiversity ArtsFest draw crowds year-round. With its bustling tourism scene and strong rental income potential, Princeton stands out in the real estate market as one of the best places for Airbnb hosts seeking a good return.
Key STR Metrics:
- Average Gross Yield: 3.7%
- Average Property Value: $1,507,528 (as of December 2024)
- Average Annual Revenue: $55,540 (past 12 months)
- Average Occupancy Rate: 50% (past 12 months)
- Qualifying Airbnbs: 85 (as of January 2025)
- Year-Over-Year Growth in Airbnbs: 88%