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Atlantic City, NJ — Market Intelligence Report
Researched by Chalet's Senior STR Analysts · Verified with local Atlantic City market partners
Atlantic City’s short-term rental market is defined by its volatility and yield, anchored by a full-time operator average annual revenue of $29,308 (Chalet data, 664 active listings). This figure sets the pace for the city’s investment narrative, outpacing many coastal peers and ranking Atlantic City #17 nationally. The broader market median of $39,499 is inflated by part-time and casual inventory, but the full-time operator number is the more reliable benchmark for professional investors. Median occupancy stands at a lean 27%, with an average daily rate (ADR) of $270 and a robust median gross yield of 18.29% against a median home value of $215,996. The city’s seasonality is pronounced: August peaks at $5,495 in monthly revenue and 67% occupancy, while October drops sharply to $1,936 and 20% occupancy, underscoring the necessity for cashflow planning.
The market’s most investable product clusters are in the mid- to large-bedroom segment, where revenue and ADR scale with size. Three-bedroom properties (207 listings) average $26,727 annually with a $288 ADR and 33% occupancy, positioning them as a workhorse for steady returns. Four-bedrooms (99 listings) step up to $40,399 in average annual revenue and a $429 ADR, with occupancy holding at 35%. For investors seeking higher gross, five-bedroom homes (59 listings) deliver $41,460 at a $504 ADR, though occupancy softens slightly to 31%. Each of these segments is well-represented, avoiding the thin-sample risk that plagues ultra-large formats. For tailored acquisition strategies and on-the-ground context, see a Chalet agent.
Geographically, the 08401 zip code is the city’s core engine, with 603 listings and a median annual revenue of $39,524 at a $270 ADR and 26% occupancy. This cluster captures the bulk of Atlantic City’s short-term rental activity, offering investors both liquidity and comp transparency. While the 08406 zip code posts a $30,351 median revenue, its sample is too thin to be a reliable anchor. The 08401 corridor remains the de facto choice for scale and resilience, with enough depth to support both new entrants and portfolio expansion. For more granular underwriting, connect with a Chalet agent.
At scale, Atlantic City’s winners are operators who can navigate sharp seasonality and tap into the region’s drive-to demand. Guest reviews are dominated by New York (11.3%) and Philadelphia (8.8%) origins, with minimal international exposure (3.0%). The average booking lead time is 31 days (median 17), and average stay is 3.4 nights, favoring managers who can dynamically price and fill gaps. The market’s high superhost share (35%) and strong average review scores (4.82 stars) signal a competitive, quality-driven environment. For personalized yield modeling and scenario planning, use the Chalet ROI calculator.
Risks are concentrated around regulatory compliance and pronounced seasonality. The city requires a license and seasonal certificate of occupancy, with a high total lodging tax stack of 16.625% and strict local contact/parking rules. While home values have edged up just 0.5% year-over-year (Chalet data), the October trough (20% occupancy) is a real stress test for cashflow, and compliance costs can erode margins if not managed proactively. For a full regulatory rundown, see Atlantic City STR regulations.
Atlantic City’s short-term rental market is a high-yield, high-seasonality play where disciplined operators can outperform, but success hinges on mastering the regulatory landscape and weathering deep off-season troughs.
| 08406 |
| 0% |
| $30,351 |
| 3 |
| $0K |