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Short-Term Rental Regulations
in Avalon, NJ

Last verified: 2026-05-14 · Report an update

Zoning & Conditions

Every property containing rental units must register, submit to inspection, and be licensed annually; properties must provide proof of liability insurance of $500,000 or greater and pass a fire inspection prior to issuance; the Borough’s Chapter 22 (Housing and Rentals) sets licensing, grounds for denial, inspection scheduling, and other conditions.

How to Obtain a Permit

1) Submit the online rental license application via the Borough’s rental licensing portal; 2) Upload proof of liability insurance ($500,000+), complete payment of the fire inspection fee and rental license fee when requested, and schedule/complete a fire inspection; 3) Upon passing inspection the rental license is mailed; renew annually.

Regulatory Updates — Avalon

Proposed and recent legislation

PassedMarch 2025

Rental Inspection Program Capacity Expanded

Avalon expanded its rental inspection program by adding additional inspection staff ahead of the summer season, reducing wait times for required pre-season inspections and decreasing the number of permits issued late.

PassedJuly 2024

Occupancy Limit Amendments for Multi-Unit Properties

Avalon amended its occupancy rules for multi-unit rental properties to specify per-unit maximums, addressing concerns about large groups splitting across multiple units in a single building to circumvent per-property caps.

PassedJanuary 2024

Annual License Renewal Fee Increase

Avalon increased annual STR license renewal fees to fund expanded inspection capacity and a dedicated rental compliance office operating from April through September.

Official Resources

Official Avalon STR regulation source

Local Resources & Advocacy

Vacation Rental Management Association (VRMA)National

National trade association providing advocacy and compliance resources for vacation rental professionals operating in New Jersey Shore markets.

New Jersey Association of RealtorsStatewide

Statewide real estate organization monitoring STR legislation across New Jersey and advocating for reasonable inspection and licensing standards for Shore rental property owners.

Cape May County TourismLocal

County tourism organization tracking STR accommodation supply trends and visitor economy impacts across Cape May County Shore communities including Avalon.

Frequently Asked Questions

Are Airbnbs legal in Avalon, NJ?
Airbnb listings are allowed in Avalon, NJ, but with restrictions. Every property containing rental units must register, submit to inspection, and be licensed annually; properties must provide proof of liability insurance of $500,000 or greater and pass a fire inspection prior to issuance; the Borough’s Chapter 22 (Housing and Rentals) sets licensing, grounds for denial, inspection scheduling, and other conditions. A permit is required before you can host. These rules apply to all short-term rental platforms (Airbnb, Vrbo, Booking.com, etc.) — not just Airbnb specifically. See the official source linked on this page for full requirements. Last verified 2026-05-14.
Are short-term rentals allowed in Avalon, NJ?
Every property containing rental units must register, submit to inspection, and be licensed annually; properties must provide proof of liability insurance of $500,000 or greater and pass a fire inspection prior to issuance; the Borough’s Chapter 22 (Housing and Rentals) sets licensing, grounds for denial, inspection scheduling, and other conditions.
Is a permit required to operate a short-term rental in Avalon?
Yes, a permit is required to operate a short-term rental in Avalon. 1) Submit the online rental license application via the Borough’s rental licensing portal; 2) Upload proof of liability insurance ($500,000+), complete payment of the fire inspection fee and rental license fee when requested, and schedule/complete a fire inspection; 3) Upon passing inspection the rental license is mailed; renew annually.
How do I get a short-term rental permit in Avalon?
1) Submit the online rental license application via the Borough’s rental licensing portal; 2) Upload proof of liability insurance ($500,000+), complete payment of the fire inspection fee and rental license fee when requested, and schedule/complete a fire inspection; 3) Upon passing inspection the rental license is mailed; renew annually.
Is Vrbo legal in Avalon, NJ?
Vrbo is permitted in Avalon, NJ under the same restrictions that apply to Airbnb — local rules govern the rental itself, not the specific platform. You must hold a valid permit before hosting on Vrbo. Last verified 2026-05-14.
What taxes do short-term rental hosts pay in Avalon?
Short-term rental hosts in Avalon are typically responsible for lodging, occupancy, and applicable sales taxes — these usually apply even where hosting is allowed without a permit. Rates and remittance rules vary by jurisdiction (state, county, and city can each levy a share); confirm the current rates with the official source linked on this page. Platforms such as Airbnb and Vrbo collect some taxes automatically, but the host remains liable for any not collected on their behalf.
What is the latest short-term rental ordinance change in Avalon?
The most recent tracked change in Avalon is "Rental Inspection Program Capacity Expanded" (2025-03-01, status: passed). Avalon expanded its rental inspection program by adding additional inspection staff ahead of the summer season, reducing wait times for required pre-season inspections and decreasing the number of permits issued late. See the regulatory updates section on this page for the full history.
What does the annual inspection cover in Avalon?
Avalon's rental inspection covers fire safety (smoke and CO detectors, extinguishers, egress), structural safety, plumbing, and sanitation. Properties must pass inspection before an annual license is issued. Schedule your inspection well before the summer season — slots fill quickly.
Can I rent my Avalon property before I get my license?
No. Operating a rental property in Avalon without a current, valid license is a violation subject to fines. All permits must be in place before any rental activity begins, including pre-season bookings that check in before your license is issued.
Does New Jersey have a statewide law protecting STR operators from local bans?
No. New Jersey has no statewide STR preemption law. Avalon retains full authority to tighten its STR rules, including by imposing caps, additional restrictions, or — in theory — prohibitions in certain zones.
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Disclaimer

This information is for general reference only and may not reflect the most current regulations. STR regulations change frequently. Always verify requirements with official local government sources before operating a short-term rental.

Last verified: 2026-05-14 · Suggest a correction