Do I need a permit for short-term rentals in Cape May?

**Yes**, Cape May requires a Rental License and a Fire Safety Certificate for short-term rentals. You need to obtain these permits before operating your rental. The combined cost for the Rental License and Fire Safety Certificate is $150 annually, ensuring compliance with local regulations.

What is the TOT tax rate in Cape May?

**2% is the TOT** (Transient Occupancy Tax) rate for short-term rentals in Cape May. Hosts are responsible for collecting this tax from guests, in addition to state sales tax and occupancy fees. Ensure you remit all taxes to the appropriate authorities to comply with local regulations.

Are short-term rentals allowed in Cape May?

**Yes**, short-term rentals are allowed in Cape May, but they are strictly regulated. You need to obtain the necessary permits and comply with occupancy limits based on the number of bedrooms in your rental property. Adherence to these regulations is crucial for legal operation.

How much does an STR permit cost in Cape May?

**$150 is the cost** for the combined Rental License and Fire Safety Certificate required for short-term rentals in Cape May. You must obtain both of these permits annually to legally operate your rental property. This ensures compliance with the city's safety and regulatory standards.

Can renters host on Airbnb in Cape May?

**No**, renters are not allowed to host on Airbnb or other short-term rental platforms in Cape May. Only property owners are permitted to operate short-term rentals, provided they obtain the necessary licenses and comply with all applicable regulations. Ensure you own the property before listing.

Cape May

Moderate

New JerseyUpdated Apr 18, 2026

Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

Short-term rentals in the City of Cape May are strictly regulated and require an annual Rental License and a Fire Safety Certificate. Hosts must comply with occupancy limits based on bedroom count and pay a combined tax rate that includes state sales tax, state occupancy fees, and a 2% local municipal occupancy tax.

Restriction level

Severity 21

Classification

Moderate

Severity

Why this classification

Standard permit fee: $150
Tenants cannot host
Permit required
Reporting required
No night cap
No primary residence requirement

In plain English

What this means for you

To host an Airbnb in the City of Cape May, you must register for a city rental license every year and pass a fire safety inspection. You do not need to live on the property to rent it out, but you must ensure you carry at least $500,000 in liability insurance as required by New Jersey law. Be aware that you are responsible for collecting state and local taxes, though platforms like Airbnb may handle some of this for you. Always post your emergency contact info and house rules clearly for guests to avoid noise complaints from neighbors.

At a glance

Key numbers

Permit requiredYes

Night limitNone

Primary residenceNot required

Total tax rate0.1%

Permit fee$150

Processing time2-4 weeks

7 things hosts often miss

Common compliance gaps

1Cape May City limits are distinct from Lower Township or West Cape May; verify your property is within City of Cape May boundaries.
2Annual fire inspections are mandatory; failure to pass or schedule will result in license revocation.
3The city has strict noise ordinances; repeated violations can lead to the permanent loss of your rental permit.
4NJ State Law S1368 requires $500k in liability insurance for all STRs.
5A 2% Municipal Occupancy Tax must be remitted locally if the platform does not collect it.
6Trash and recycling must be managed according to the city's specific seasonal schedule.
7Occupancy is strictly limited by the number of bedrooms; 'over-stuffing' a house with guests is a frequent source of fines.

Regulation details

Sourced from official code

Eligibility8 rules

Cape May allows STRs in the following property types: Single-family, Two-family, Multi-family apartments, Condominiums.
Cape May: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
Cape May: You can have a co-host or property manager help manage your listing.

Requirements20 rules

Cape May: Hosts must report their rental activity quarterly to the city, even if platforms collect taxes.
Cape May: The city has strict noise ordinances; repeated violations can lead to the permanent loss of your rental permit.
Cape May: Trash and recycling must be managed according to the city's specific seasonal schedule.

Application process10 rules

Cape May STR permit - Step 2: Schedule Fire Inspection. Contact the Cape May Fire Bureau to schedule the mandatory annual fire safety inspection. Time: 1-2 weeks. Cost: 100.
Cape May STR permit - Step 1: Obtain Rental License. Submit a Rental License Application to the City Clerk's office. Required documents: Application Form, Proof of Ownership. Time: 1 week. Cost: 150.

Fees & costs2 rules

Cape May: NJ State Law S1368 requires $500k in liability insurance for all STRs.
Cape May charges a registration fee of $150 (annual). Extended/additional fee: $100 (Fire inspection fees vary by unit size; typical fee is around $100 for a dwelling unit.).

Taxes3 rules

Cape May: A 2% Municipal Occupancy Tax must be remitted locally if the platform does not collect it.
New Jersey has a state sales tax of 6.625% that applies to STR rentals.

Limits & restrictions6 rules

Cape May: Cape May City limits are distinct from Lower Township or West Cape May; verify your property is within City of Cape May boundaries.
Cape May limits stays to a maximum of 30 nights.
Cape May enforces quiet hours: 10:00 PM - 8:00 AM.

Safety requirements2 rules

Cape May requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Annual fire safety inspection is mandatory, Certificate of Smoke Detector and Carbon Monoxide Alarm required.
Cape May: Annual fire inspections are mandatory; failure to pass or schedule will result in license revocation.

Penalties4 rules

Cape May, NJ: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
Cape May: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
Cape May: Occupancy is strictly limited by the number of bedrooms; 'over-stuffing' a house with guests is a frequent source of fines.

Exemptions3 rules

Cape May: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
Cape May exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

Frequently asked questions

5 answered

Disclaimer

Regulatory information is AI-researched from public city/county codes for educational purposes. Details may be outdated or incomplete. Always verify requirements directly with your city/county planning department before operating a short-term rental.

Researched & verified by Learn STR at GoStudioM

Cape May

Moderate

New JerseyUpdated Apr 18, 2026

Gold-standard verification1% sourced

Cross-referenced against 3 official sources — municipal codes, planning-department pages, and government registries.

Verified Jan 30, 2026Sources 3

Summary

Plain-english overview

Restriction level

Severity 21

Classification

Moderate

Severity

Why this classification

Standard permit fee: $150
Tenants cannot host
Permit required
Reporting required
No night cap
No primary residence requirement

In plain English

What this means for you

At a glance

Key numbers

Permit requiredYes

Night limitNone

Primary residenceNot required

Total tax rate0.1%

Permit fee$150

Processing time2-4 weeks

7 things hosts often miss

Common compliance gaps

1Cape May City limits are distinct from Lower Township or West Cape May; verify your property is within City of Cape May boundaries.
2Annual fire inspections are mandatory; failure to pass or schedule will result in license revocation.
3The city has strict noise ordinances; repeated violations can lead to the permanent loss of your rental permit.
4NJ State Law S1368 requires $500k in liability insurance for all STRs.
5A 2% Municipal Occupancy Tax must be remitted locally if the platform does not collect it.
6Trash and recycling must be managed according to the city's specific seasonal schedule.
7Occupancy is strictly limited by the number of bedrooms; 'over-stuffing' a house with guests is a frequent source of fines.

Regulation details

Sourced from official code

Eligibility8 rules

Cape May allows STRs in the following property types: Single-family, Two-family, Multi-family apartments, Condominiums.
Cape May: Your HOA can prohibit short-term rentals even if the city allows them. Check your CC&Rs before applying.
Cape May: You can have a co-host or property manager help manage your listing.

Requirements20 rules

Cape May: Hosts must report their rental activity quarterly to the city, even if platforms collect taxes.
Cape May: The city has strict noise ordinances; repeated violations can lead to the permanent loss of your rental permit.
Cape May: Trash and recycling must be managed according to the city's specific seasonal schedule.

Application process10 rules

Cape May STR permit - Step 2: Schedule Fire Inspection. Contact the Cape May Fire Bureau to schedule the mandatory annual fire safety inspection. Time: 1-2 weeks. Cost: 100.
Cape May STR permit - Step 1: Obtain Rental License. Submit a Rental License Application to the City Clerk's office. Required documents: Application Form, Proof of Ownership. Time: 1 week. Cost: 150.

Fees & costs2 rules

Cape May: NJ State Law S1368 requires $500k in liability insurance for all STRs.
Cape May charges a registration fee of $150 (annual). Extended/additional fee: $100 (Fire inspection fees vary by unit size; typical fee is around $100 for a dwelling unit.).

Taxes3 rules

Cape May: A 2% Municipal Occupancy Tax must be remitted locally if the platform does not collect it.
New Jersey has a state sales tax of 6.625% that applies to STR rentals.

Limits & restrictions6 rules

Cape May: Cape May City limits are distinct from Lower Township or West Cape May; verify your property is within City of Cape May boundaries.
Cape May limits stays to a maximum of 30 nights.
Cape May enforces quiet hours: 10:00 PM - 8:00 AM.

Safety requirements2 rules

Cape May requires the following safety measures for STRs: smoke detectors, CO detectors, fire extinguisher, fire inspection, posted maximum occupancy, posted emergency contact, Annual fire safety inspection is mandatory, Certificate of Smoke Detector and Carbon Monoxide Alarm required.
Cape May: Annual fire inspections are mandatory; failure to pass or schedule will result in license revocation.

Penalties4 rules

Cape May, NJ: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
Cape May: Repeated violations can result in permanent permit revocation. You would lose the ability to operate any STR.
Cape May: Occupancy is strictly limited by the number of bedrooms; 'over-stuffing' a house with guests is a frequent source of fines.

Exemptions3 rules

Cape May: Rentals of 30+ days are generally NOT considered short-term rentals and may be exempt from STR regulations (but may have other requirements).
Cape May exempts the following from STR regulations: long-term rentals (30+ days), extended stays.

Frequently asked questions

5 answered

Disclaimer

Researched & verified by Learn STR at GoStudioM

Summary

Restriction level

Why this classification

In plain English

At a glance

7 things hosts often miss

Regulation details

Frequently asked questions

1Do I need a permit for short-term rentals in Cape May?

2What is the TOT tax rate in Cape May?

3Are short-term rentals allowed in Cape May?

4How much does an STR permit cost in Cape May?

5Can renters host on Airbnb in Cape May?

Disclaimer

Summary

Restriction level

Why this classification

In plain English

At a glance

7 things hosts often miss

Regulation details

Frequently asked questions

1Do I need a permit for short-term rentals in Cape May?

2What is the TOT tax rate in Cape May?

3Are short-term rentals allowed in Cape May?

4How much does an STR permit cost in Cape May?

5Can renters host on Airbnb in Cape May?

Disclaimer