City Watch
Short-term rental rules in Ocean City, NJ
How Ocean City regulates short-term rentals: the rules that apply, their sources, and pending changes.
Short-term rentals here operate under a registration or permit system with ongoing operating rules.
- Annual mercantile license and rental registration for all units
- $500K liability insurance with city as certificate holder
- 3% municipal occupancy tax adopted Jul 17, 2025
- No adopted supply constraint — no minimum-stay, moratorium, or cap
Based on: Municipal Code Vol.I Ch.5 (§5-1 Mercantile License / Rental Registration) + Ch.30 (Fees) + 2025 Municipal Occupancy Tax
Summary of the rule
All residential + commercial rental units require an annual Mercantile License (Rental Registration) under Vol.I §5-1
View the ordinance source ↗✓ Verified
Active litigation / open question
STR-industry attorneys have questioned the scope/legality of the 3% occupancy tax (arguing it should cover hotels/motels/B&Bs equally, not single out marketplace-booked rentals); no filed case confirmed. Source ↗
Reported as fact only, reflecting the code as currently in effect — not legal advice, and not a prediction of the outcome. Verify current status before relying on it.
Last reviewed Sep 9, 2026 · Sources · Report an error
Pending legislation
Monitoring Ocean City · system last checked Oct 25, 2026
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City Watch tracks changes from public sources — council agendas, state bills, local news — not a complete legal compendium.
A city permit is not the whole picture — HOA, condominium, deed, or lease rules may be stricter.
City Watch provides good-faith summaries of publicly available information as of the review date shown. Rules, enforcement, and permit availability can change, and summaries may contain errors or omissions. Ratings describe the general regulatory environment; they do not establish whether a particular property or stay is permitted. This is general information, not legal advice. Before buying, listing, or hosting, verify applicable requirements with the responsible authorities and review any HOA, condominium, deed, or lease restrictions.