Short-Term Rental Laws in Ocean City, New Jersey

Ocean City NJ (the "America's Greatest Family Resort" — dry city, no alcohol sales) operates an STR framework with registration + mandatory annual inspection for all rental properties. STR is permitted broadly but the city's family-resort character drives strict enforcement of noise, occupancy, and parking standards. Whole-house weekly summer rentals are the dominant model here (the historic Jersey Shore Saturday-to-Saturday cadence), making the regulatory framework genuinely "STR-friendly" relative to weekend-turnover patterns. Some single-family R-1 sub-districts have tightened nightly-rental restrictions but weekly rental remains broadly permitted.

Ocean City NJ zoning permits residential rental across R-1, R-2, R-3 single-family and multi-family residential zones plus B-1, B-2 Business and Resort zones. The 2019 ordinance updates tightened inspection requirements but did not introduce zoning-class bans. Weekly Saturday-to-Saturday rentals remain the operational default and most ordinance language is designed around that pattern rather than nightly turnover. Verify whether any newer (post-2023) sub-district overlay adds nightly-rental restrictions on your parcel.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Ocean City Code Enforcement administers Mercantile License + annual life-safety inspection. Application requires proof of insurance, 24/7 local responsible-party contact, smoke/CO/fire-extinguisher certification, posted occupancy + parking plan, and a "good neighbor" briefing. NJ State Transient Accommodations Tax (5% occupancy + 6.625% sales tax) collected by NJ Division of Taxation. Cape May County's 2% tourism fee applies on top. Operating without a license: $500–$2,000 per violation; persistent unlicensed operation triggers cease-rental orders.

Combined short-term lodging tax in Ocean City is approximately 13.625% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

NJ State sales 6.625% + NJ State occupancy fee 5% + Cape May County tourism fee 2% — combined ~13.625% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.