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Short-Term Rental Regulations
in Cape May, NJ

Last verified: March 2026 · Report an update

Zoning & Conditions

Short-term rentals are restricted to properties that are licensed and inspected annually. Owners must maintain liability insurance of at least $300,000 or $500,000 depending on property type and must display a city-issued decal on the main door or window visible from the exterior.

How to Obtain a Permit

1. File a rental unit registration with the City Clerk’s office and provide proof of liability insurance. 2. Schedule and pass an inspection by the Fire Prevention Bureau. 3. Pay the required annual registration and inspection fees by May 1st to receive the license and required decal.

Regulatory Updates — Cape May

Proposed and recent legislation

PassedJuly 2024

Cape May Rental CO Inspection Program Expanded

Cape May expanded its rental certificate of occupancy inspection program to cover more STR-specific safety items, including fire suppression and egress requirements.

ProposedFebruary 2025

New Jersey STR Registration Bill Proposed

A New Jersey state bill proposed a statewide STR registration requirement that would layer on top of local regulations like Cape May's, adding state-level data reporting.

PassedSeptember 2024

Cape May Historic District STR Signage Rules

Cape May's Historic Preservation Commission updated rules on STR signage and exterior modifications in the Victorian historic district affecting vacation rental properties.

Official Resources

Official Cape May STR regulation source

Local Resources & Advocacy

New Jersey Association of REALTORSStatewide

Statewide REALTOR association monitoring STR legislation and property rights in New Jersey.

Cape May MAC (Mid-Atlantic Center for the Arts)Local

Cultural organization representing Cape May's tourism and historic preservation community, engaged in property-related matters.

Vacation Rental Management Association (VRMA)National

National trade organization for professional vacation rental managers.

Frequently Asked Questions

Are short-term rentals allowed in Cape May, NJ?
Short-term rentals are restricted to properties that are licensed and inspected annually. Owners must maintain liability insurance of at least $300,000 or $500,000 depending on property type and must display a city-issued decal on the main door or window visible from the exterior.
Is a permit required to operate a short-term rental in Cape May?
Yes, a permit is required to operate a short-term rental in Cape May. 1. File a rental unit registration with the City Clerk’s office and provide proof of liability insurance. 2. Schedule and pass an inspection by the Fire Prevention Bureau. 3. Pay the required annual registration and inspection fees by May 1st to receive the license and required decal.
How do I get a short-term rental permit in Cape May?
1. File a rental unit registration with the City Clerk’s office and provide proof of liability insurance. 2. Schedule and pass an inspection by the Fire Prevention Bureau. 3. Pay the required annual registration and inspection fees by May 1st to receive the license and required decal.
What is a rental certificate of occupancy in Cape May?
Cape May requires all rental properties, including STRs, to obtain a rental certificate of occupancy (CO) through an annual city inspection. The inspection covers fire safety, egress, and basic habitability standards.
Are there special rules for STRs in Cape May's Victorian historic district?
Yes. Properties in the historic district must comply with Historic Preservation Commission guidelines on exterior modifications, signage, and changes that could affect the Victorian character of the property.
How much is the Cape May hotel/motel tax for STRs?
STR operators in Cape May must collect and remit New Jersey's state hotel/motel occupancy fee plus Cape May County's tourism assessment. Check current rates with the city's tax collector.
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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: March 2026 · Suggest a correction