Airbnb City Guide: The Best Places To Invest in Newark, New Jersey

Airbnb Rules and Regulations in Newark, New Jersey

As of 2024, Newark has implemented a set of regulations for short-term rentals, including those listed on different booking sites and platforms, to ensure a balance between the benefits of tourism and the preservation of residential communities. Owners of short-term rental properties must obtain a permit from the Department of Engineering before advertising or renting their space. Additionally, they are required to apply for a Certificate of Code Compliance, with both the permit and certificate needing annual renewal at a fee of $250.

The primary occupant of all short-term rentals must be at least 21 years old and ensure compliance with all applicable city and state laws, rules, and regulations. Newark also imposes a 6% hotel occupancy tax on all short-term rental charges, with properties in the city's tourism improvement district subject to an additional 1.5% tax, similar to hotels. To maintain eligibility, rental properties cannot have more than two verified incidents with police in the past two years, any open code enforcement violations, or unpaid water and sewer bills.

Newark Airbnb Market Data:

• Average Revenue – $67.2K per year
• Average Daily Rate – $408.9 per night
• Average Occupancy Rate – 51%
• Average RevPAR – $209.5
• Average Home Prices – $437,808

1. Top Place to Invest in Newark, New Jersey - Ironbound

Ironbound, a vibrant neighborhood in Newark, New Jersey, has emerged as a prime location for Airbnb investments. This culturally diverse area offers a unique blend of convenience, attractions, and growth potential, making it an attractive option for savvy investors looking to capitalize on the short-term rental market.

Ironbound Airbnb Market Data:

• Average Revenue – $121.3K per year
• Average Daily Rate – $494.4 per night
• Average Occupancy Rate – 70%
• Average RevPAR – $340.2

Convenience - 8/10

Ironbound's central location and well-connected public transportation system make it highly convenient for both residents and visitors. The neighborhood is served by multiple bus lines and is just a short walk from Newark Penn Station, which provides easy access to New York City and other major destinations in the region.

Tourist Attractions - 7/10

Known for its rich Portuguese and Brazilian heritage, Ironbound boasts a variety of cultural attractions, including the Newark Museum, the New Jersey Performing Arts Center, and the famous Ferry Street, lined with authentic restaurants and shops. While not as well-known as some other tourist hotspots, Ironbound's unique charm and hidden gems make it an increasingly popular destination.

Things to Do - 7/10

Ironbound offers a diverse array of activities for visitors and residents alike. From exploring the neighborhood's vibrant street art scene to indulging in its renowned culinary offerings, there's always something to discover. The area also hosts several local annual festivals and events, such as the Portugal Day Festival and the Brazilian Festival, which draw crowds from far and wide.

Average Home Prices - 6/10

As of 2024, the median home price in Ironbound sits at $350,000, according to Zillow data. This represents a modest 2.5% appreciation rate over the past year, indicating a stable and growing market. While prices are higher than some other areas of Newark, Ironbound's strong short-term rental demand and potential for long-term appreciation make it an attractive investment opportunity.

Proximity to Work-Related Travel - 8/10

Ironbound's strategic location makes it an ideal base for work-related travel. The neighborhood is just minutes away from Newark Liberty International Airport, making it convenient for business travelers. Additionally, its proximity to major hospitals, convention centers, and sports venues, such as the Prudential Center, ensures a steady flow of potential guests throughout the year.

X-Factor - 9/10

What sets Ironbound apart is its unparalleled cultural diversity and authentic charm. The neighborhood's vibrant mix of Portuguese, Brazilian, and Spanish influences creates a unique atmosphere that draws visitors from all walks of life. From the mouthwatering cuisine to the lively music scene, Ironbound offers an immersive experience that keeps guests coming back for more.

2. Top Place to Invest in Newark, New Jersey - Downtown Newark

Downtown Newark, the heart of New Jersey's largest city, is quickly becoming a hotspot for joining the Airbnb rental industry. With its thriving business district, rich cultural scene, and ongoing revitalization efforts, this dynamic neighborhood offers a wealth of opportunities for those looking to capitalize on the growing short-term rental market.

Downtown Newark Airbnb Market Data:

• Average Revenue – $114.7K per year
• Average Daily Rate – $626.5 per night
• Average Occupancy Rate – 54%
• Average RevPAR – $341.5

Convenience - 9/10

One of Downtown Newark's greatest strengths is its unbeatable convenience. The area is served by an extensive public transportation network, including the Newark Light Rail and numerous bus lines, making it easy for visitors to navigate the city and beyond. The neighborhood's walkability and proximity to major highways further enhance its appeal.

Tourist Attractions - 8/10

Downtown Newark boasts an impressive array of tourist attractions, from world-class museums and performing arts centers to historic landmarks and green spaces. Visitors can explore the Newark Museum, catch a show at the New Jersey Performing Arts Center, or take a stroll through Military Park, all within easy reach of the neighborhood's many short-term rental properties.

Things to Do - 8/10

There's never a dull moment in Downtown Newark, with a diverse range of activities and events catering to every interest. Foodies can indulge in the neighborhood's eclectic dining scene, while art enthusiasts can gallery-hop along Halsey Street. The area also hosts numerous festivals and concerts throughout the year, drawing visitors from far and wide.

Average Home Prices - 7/10

As of 2024, the median home price in Downtown Newark stands at $400,000, according to Zillow data. While this may seem steep compared to other areas of the city, it represents a healthy 3.5% appreciation rate over the past year. Despite the higher entry point, the neighborhood's strong rental demand and potential for long-term growth make it an attractive investment prospect.

Proximity to Work-Related Travel - 9/10

Downtown Newark's central location and excellent transportation links make it a prime destination for work-related travel. The neighborhood is just a short ride away from Newark Liberty International Airport and is home to numerous corporate headquarters, government offices, and major healthcare facilities, ensuring a steady stream of business travelers and visiting professionals for corporate rental properties.

X-Factor - 8/10

What sets Downtown Newark apart is its palpable sense of energy and momentum. The neighborhood is undergoing a remarkable transformation, with new developments, businesses, and cultural attractions springing up at every turn. This dynamic, forward-looking atmosphere, combined with the area's rich history and diverse community, creates a unique and compelling environment for short-term rental guests.

3. Top Place to Invest in Newark, New Jersey - University Heights

University Heights, a vibrant Newark, New Jersey neighborhood, is emerging as a promising investment opportunity for Airbnb and short-term rental investors. Home to several renowned educational institutions and a thriving student population, this area offers a unique blend of youthful energy, convenience, and untapped potential.

University Heights Airbnb Market Data:

• Average Revenue – $41.4K per year
• Average Daily Rate – $270.3 per night
• Average Occupancy Rate – 49%
• Average RevPAR – $131.5

Convenience - 7/10

University Heights benefits from a relatively convenient location, with access to public transportation and major roadways. The neighborhood is served by several bus lines and is a short distance from the Newark Light Rail, making it easy for visitors to explore the city and its surroundings. However, the area's walkability and overall connectivity could be improved.

Tourist Attractions - 6/10

While University Heights may not be a top tourist destination, it does offer a few notable attractions. The Newark Museum, the largest museum in New Jersey, is located just on the edge of the neighborhood, drawing visitors with its extensive art and science collections. The area also boasts several historic buildings and green spaces, providing a glimpse into Newark's rich past.

Things to Do - 7/10

University Heights offers a range of activities and events catering to its student population and the wider community. Visitors can attend lectures, workshops, and cultural events at the neighborhood's various educational institutions or explore the eclectic mix of local shops, cafes, and restaurants. The area also hosts several annual festivals and fairs, showcasing the talents and diversity of its residents.

Average Home Prices - 8/10

As of 2024, the median home price in University Heights stands at $280,000, according to Zillow data. This represents an impressive 4.5% appreciation rate over the past year, indicating a strong and growing market. The relatively affordable prices and the area's potential for long-term growth make it an attractive option for investors looking to maximize their returns.

Proximity to Work-Related Travel - 7/10

University Heights' proximity to several major institutions and employers makes it a convenient base for work-related travel. The neighborhood is home to the University of Medicine and Dentistry of New Jersey, as well as Rutgers University-Newark and the New Jersey Institute of Technology. While not as centrally located as some other areas, University Heights still offers easy access to key destinations throughout the city.

X-Factor - 8/10

What sets University Heights apart is its unique blend of academic energy and community spirit. The presence of multiple universities and colleges creates a vibrant, intellectually stimulating atmosphere, while the neighborhood's diverse population and strong sense of identity foster a welcoming and inclusive environment. This combination of factors makes University Heights an appealing destination for a wide range of short-term rental guests, from visiting scholars and students to curious travelers seeking an authentic Newark experience.

Top Place to Invest in Newark, New Jersey - Lower Broadway

Lower Broadway, a historic neighborhood in the heart of Newark, New Jersey, is quickly becoming a hotspot for rental investments. With its prime location, rich cultural heritage, and ongoing revitalization efforts, this area offers a unique opportunity for savvy investors looking to start their own short-term rental and capitalize on Newark's growing tourism industry.

Lower Broadway Airbnb Market Data:

• Average Revenue – $63.9K per year
• Average Daily Rate – $366.4 per night
• Average Occupancy Rate – 56%
• Average RevPAR – $199.3

Convenience - 8/10

One of Lower Broadway's greatest assets is its convenience. The neighborhood is well-served by public transportation, with multiple bus lines and the Newark Light Rail running through the area. Its central location also makes it easy for visitors to explore other parts of the city and access major highways and transportation hubs like Newark Penn Station.

Tourist Attractions - 7/10

Lower Broadway may not be as well-known as some other Newark neighborhoods, but it still offers a range of interesting attractions for visitors. With its stunning Gothic Revival architecture, the historic Grace Church is a must-see for history and architecture buffs. The area is also home to several art galleries showcasing the work of local and emerging artists.

Things to Do - 7/10

From exploring the neighborhood's vibrant street art scene to indulging in its diverse culinary offerings, there's no shortage of things to do on Lower Broadway. The area hosts several annual events and festivals, such as the Newark Arts Festival and the Lincoln Park Music Festival, which draw visitors from across the region. Lower Broadway's proximity to Downtown Newark also means that guests have easy access to a wide range of additional activities and attractions.

Average Home Prices - 9/10

As of 2024, the median home price in Lower Broadway stands at $220,000, according to Zillow data. This represents a modest 2% appreciation rate over the past year, indicating a stable and affordable market. The relatively low entry point, combined with the area's strong potential for growth and appreciation, makes it an attractive option for investors looking to transform a home into a profitable Airbnb.

Proximity to Work-Related Travel - 7/10

While Lower Broadway may not be as centrally located as some other Newark neighborhoods, it still offers convenient access to key destinations for work-related travel. The area is just a short ride away from Newark Liberty International Airport and is within easy reach of major hospitals, universities, and corporate centers. Its proximity to Downtown Newark also makes it a convenient base for business travelers and conference attendees.

X-Factor - 8/10

What sets Lower Broadway apart is its unique blend of history, culture, and community. The neighborhood's rich African American heritage is reflected in its architecture, art, and institutions, creating a distinct sense of place and identity. At the same time, Lower Broadway is undergoing a remarkable transformation, with new businesses, developments, and initiatives breathing fresh life into the area. This combination of old and new, tradition and innovation, makes Lower Broadway a compelling destination for short-term rental guests seeking an authentic and immersive Newark experience.

Top Place to Invest in Newark, New Jersey - Weequahic

Weequahic, a charming neighborhood in the South Ward of Newark, New Jersey, is quickly gaining attention as a prime location for Airbnb and short-term rental investments. With its proximity to major attractions, diverse culinary scene, and affordable real estate, Weequahic offers a unique opportunity for savvy investors looking to capitalize on Newark's growing tourism industry.

Weequahic Airbnb Market Data:

• Average Revenue – $63.6K per year
• Average Daily Rate – $444.4 per night
• Average Occupancy Rate – 43%
• Average RevPAR – $188

Convenience - 7/10

Situated just 10 minutes from downtown Newark, Weequahic provides easy access to the city's main attractions and transportation hubs. The neighborhood is served by multiple bus lines, making it convenient for visitors to explore the area and beyond. However, the lack of direct access to the Newark Light Rail may be a drawback for some guests.

Tourist Attractions - 6/10

While Weequahic may not boast a wealth of tourist attractions within its borders, it is home to the largest park in Essex County, the 311-acre Weequahic Park. This green oasis offers a variety of recreational activities, including a golf course, walking trails, and sports facilities. The neighborhood's proximity to other Newark attractions, such as the Newark Museum and the Prudential Center, adds to its appeal.

Things to Do - 7/10

Weequahic's diverse food scene is a major draw for visitors, with a range of authentic cuisines from around the world, including Haitian, Chinese, African, and Mexican. The neighborhood also hosts several annual events and festivals, showcasing its vibrant community spirit. For those seeking outdoor adventures, Weequahic Park provides ample opportunities for picnics, sports, and relaxation.

Average Home Prices - 9/10

As of 2024, the typical home value in Weequahic stands at $444,299, according to Zillow data. This represents a staggering 63.1% depreciation over the past year, making it an attractive option for investors looking to acquire properties at a lower cost. The affordability of real estate in Weequahic and its potential for short-term rental income presents a compelling investment opportunity.

Proximity to Work-Related Travel - 7/10

Weequahic's location, just 10 minutes from Newark Liberty International Airport, makes it a convenient base for business travelers and visitors attending conferences or events in the area. While the neighborhood may not be within walking distance of major hospitals or convention centers, its easy access to main roads and highways ensures relatively short commute times.

X-Factor - 8/10

What sets Weequahic apart is its strong sense of community and rich cultural heritage. The neighborhood's diverse population and welcoming atmosphere create a unique and authentic experience for visitors, offering a glimpse into the true essence of Newark. As the city continues to invest in revitalization efforts, Weequahic is poised to benefit from increased tourism and economic growth, making it an attractive prospect for long-term investment.