Cape May

As of May 2026, Cape May, Wildwood, Ocean City have 3,473 active Airbnb and VRBO listings. This represents a 0% increase from the previous year.

The average Airbnb or VRBO in Cape May generates $36K per year. High-performing properties earn $88K/year, while low-performing properties earn $20K/year. This massive revenue disparity highlights a market where traveler preference is highly concentrated, creating a wide gap between top-tier earners and the broader inventory struggling with low occupancy.

Average home prices in Cape May vary by property size: 1-bedroom properties cost approximately $437K, 2-bedroom homes average $542K, 3-bedroom properties are around $519K, and 4+ bedroom homes average $760K. These prices reflect median home values across the Cape May, Wildwood, Ocean City area.

Airbnb and VRBO can be profitable in Cape May, with an average gross yield of 3% across all properties. High-performing properties achieve yields up to 8%, which is considered fair for short-term rental investment. The spread between average and high yields suggests that competitive returns are heavily dependent on capturing a specific segment of demand.

The average occupancy rate for Airbnbs and VRBOs in Cape May is 27%. This occupancy level, combined with an average nightly rate of $420, results in a RevPAR (revenue per available room) of $64 per day.

1-bedroom properties demonstrate the strongest performance in Cape May, with an average gross yield of 6% and annual revenue of $24K. These properties balance purchase price ($437K), operating costs, and rental demand most effectively in the Cape May market.

Short-term rental regulations vary by jurisdiction in the Cape May area. Cape May: Strict. Rental license required, zoning restrictions limit STRs in residential areas, owner must be present or have local agent. Active enforcement with inspections and fines. Wildwood: Moderate. Business license and mercantile license required, fire safety inspections mandatory. Standard enforcement through complaint-based system. Ocean City: Strict. Rental license required, owner-occupancy mandate for single-family homes, density caps in neighborhoods. Active enforcement with regular inspections and violations tracked. Always verify current regulations with local authorities and obtain necessary permits before operating a short-term rental.

The Cape May Airbnb and VRBO market is currently showing balanced conditions. Supply has grown 0% year-over-year, while RevPAR has decreased 48%. This indicates balanced supply-demand dynamics. Despite stagnant supply, the sharp drop in revenue per listing signals that market saturation is exerting downward pressure on profitability regardless of inventory growth.

Launch around May, 2-3 months before peak summer season (August peaks). This pre-peak timing lets you build reviews when competition is 36% lower than peak months. Avoid launching during peak season when established listings dominate, or slow months (March-January) when gaining traction is harder.

The most common amenities in Cape May listings include: Air Conditioning (99%), Kitchen (97%), Tv (79%), Washing Machine (77%), Heating (59%). Amenities that boost revenue the most include Washing Machine, Hot Tub, Bicycles, with Washing Machine properties earning approximately 38% more ($79K/year vs $57K/year).

Monthly estimated revenue per listing in Cape May over the last 12 months: May: $2K, June: $4K, July: $5K, August: $5K, September: $2K, October: $1K, November: $827, December: $1K, January: $395, February: $428, March: $660, April: $1K. These figures are based on RevPAR (revenue per available room) multiplied by the number of days in each month.

The overall average nightly rate in Cape May is $420, up 8% year-over-year. By property size: 1-bedroom properties average $248/night, 2-bedroom properties average $297/night, 3-bedroom properties average $397/night, 4+ bedroom properties average $734/night. Rates peak in August and are lowest in January.

Guests in Cape May book an average of 38 days in advance, down 28% from last year. By property size: 1-bedroom: 33 days, 2-bedroom: 36 days, 3-bedroom: 39 days, 4+ bedroom: 46 days. Larger properties tend to have longer booking windows as guests plan group trips further ahead.

Over the past year, the Cape May Airbnb and VRBO market has seen the following changes: supply grew 0%, revenue per listing decreased 48%, occupancy fell 12%, average nightly rates increased 8%, and lead time decreased 28%. These metrics reveal a shift toward shorter booking windows and reduced utilization, suggesting travelers are exercising greater caution amidst rising price points.

In Cape May, Saturday sees the highest booking demand while Tuesday has the lowest. Nightly rates peak on Saturday and are lowest on Wednesday. Weekends show 43% higher occupancy than weekdays.