Shore Vacation Rental ROI
Which markets generate the best summer rental income
Rental Income at the Shore: What the Numbers Look Like
Many shore buyers plan to offset carrying costs through vacation rental income. How well that works depends heavily on which market you choose. Ocean City and LBI have exceptional rental track records. Spring Lake and Avalon do not -- not because rental rates are low, but because the buyer culture is ownership-first and rental infrastructure is thin.
Gross income estimates below are based on typical weekly rental rates and occupancy patterns. Net income after property management (typically 20-30%), cleaning, maintenance, and insurance is substantially lower. These figures are for comparison purposes; get actual rental projections from a local property manager before buying.
High ROI Potential
Strong summer rental income that meaningfully offsets carrying costsLong Beach Island (Beach Haven)
ocean County
Barrier island scarcity, proven repeat rental demand, families book years in advance. Large houses near the beach gross at the high end.
View Long market data →Ocean City
cape may County
8 million annual visitors, dry-town family demographics, 2.5-mile boardwalk. One of the most reliable rental markets on the East Coast. Buyers repeat year after year.
View Ocean market data →Wildwood
cape may County
Free beaches drive mass-market visitor volume. Lower purchase prices mean higher yield percentages even at lower gross rents. Strong ROI for investors who cannot reach Ocean City prices.
View Wildwood market data →Moderate ROI Potential
Solid summer income with longer shoulder seasons than most shore marketsCape May
cape may County
Year-round tourism from whale watching, birding, Victorian house tours, and restaurant culture extends occupancy well beyond other shore markets. B&B investors project 10+ months of income.
View Cape market data →Asbury Park
monmouth County
Year-round restaurant and nightlife scene creates rental demand in months that other shore towns sit empty. Short-term and long-term rental markets both active.
View Asbury market data →Point Pleasant Beach
ocean County
Jenkinson's Boardwalk drives consistent summer volume. Bay and ocean access appeal to boating renters. More affordable than LBI with comparable summer occupancy rates.
View Point market data →Lower ROI (Ownership-Focused)
Markets where buyers prioritize personal use over rental incomeAvalon
cape may County
Strong gross rents but purchase prices are so high that yield percentages are low. Most Avalon buyers hold primarily for personal use with rental as a secondary consideration.
View Avalon market data →Spring Lake
monmouth County
Private beach access limits rental appeal; most renters cannot access the beach without resident status. Most owners hold for personal use. Very thin rental inventory.
View Spring market data →What Affects Rental ROI at the Shore
Location within the town
Ocean-block properties command premium weekly rates (2-3x inland pricing in some markets). Bay-front properties can earn strong rates from boating renters at lower purchase prices than oceanfront.
Property size and beds
Larger properties (4+ bedrooms) earn disproportionately more per week because shore groups travel together. A 5-bedroom house is not 5x a 1-bedroom condo -- it can be 8-10x.
Management approach
Self-managed properties keep more revenue but require active involvement. Professional managers take 20-30% but handle booking, cleaning, and maintenance. Many buyers start self-managed and hire out as the portfolio grows.
Local ordinances
Short-term rental regulations vary significantly by town. Ocean City is rental-friendly. Some towns require permits, limit rental nights, or restrict rentals in certain zones. Always verify local regulations before purchasing for rental purposes.
Rent in a Market Before You Buy
Staying as a guest tells you what renters experience -- and whether you would enjoy owning there too.
Browse Ocean City Vacation RentalsShore Market Updates
Monthly rental and market data for NJ coastal investors.
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