Real Estate Investing in Ocean City, New Jersey (08226)
Everything the listing leaves out — vacancy, rent trend, cap rate, landlord climate. All free.
Should you buy in 08226 (Ocean City, NJ)? Our answer, based on the numbers below.
Multiple negative signals. Better options likely exist nearby.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
- High vacancy: 73.5% of homes vacant — above national norms.
- Tenant-protective state: Landlord rating 1.0/5 — slower evictions, more regulations.
- High price-to-rent: Price-to-rent ratio 49.9 — hard to cash-flow at these prices.
What’s happening in Ocean City, NJ (08226)?
Click any question — our AI will research it live from the web and show you sources.
Market Analysis: 08226 Ocean City
ZIP 08226 inside Cape May County looks affordable on the surface — median value of $1.1M — but the discount exists for reasons that a careful buyer should understand before committing.
Distressed does not mean uninvestable. It means the margin for error is thinner. ZIP 08226 rewards the prepared, punishes the overconfident, and leaves the math unchanged either way.
The gap between 08226 and stronger Ocean City ZIPs is not closing quickly. Investors should weight long-horizon assumptions accordingly.
The 08226 ZIP's population of 11,260 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that sits at the need for careful underwriting.
Strategically, 08226 can be a high-return sleeve of a diversified portfolio — but it should not be the whole portfolio, and it should not be someone's first deal.
Here's what matters if you're considering buying a home in Ocean City:
Property Strategy for 08226
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $366,796 | $1,620 | 3.2% | +6.1% | $366,796 |
| 2BR | $604,128 | $2,130 | 2.5% | +8.0% | $302,064 |
| 3BR | $943,378 | $2,850 | 2.2% | +6.8% | $314,459 |
| 4BR | $1,297,226 | $2,860 | 1.6% | +6.6% | $324,307 |
| 5BR | $2,037,325 | — | — | +10.0% | $407,465 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 08226 Compare?
| Metric | 08226 | Ocean City | Ocean City, NJ | New Jersey |
|---|---|---|---|---|
| Home Value | $1,131,251 | $1,131,251 | N/A | $559,826 |
| 5-Year CAGR | 5.2% | 5.2% | N/A | 8.4% |
| Avg Rent | $1,890 | $1,890 | N/A | - |
| Cap Rate | 1.3% | 1.3% | - | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 08226 (Ocean City, NJ). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $1,131,251 |
| Monthly Rent | $1,890 |
| Price-to-Rent | 49.9:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 2.0% |
| Cap Rate | 1.3% |
| 5-Year IRR | 6.5% |
📈 Home Appreciation
| 1-Year | +8.5% ▲ |
| 3-Year CAGR | +3.1% ▲ |
| 5-Year CAGR | +5.2% ▲ |
| 10-Year CAGR | +6.9% ▲ |
🏠 Rent Trends
| 1-Year | N/A |
| 3-Year CAGR | N/A |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (1.3%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 08226
Population: 11,260
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 08226
Schools in This ZIP Code
Nearby Schools (2 more)
Schools in adjacent ZIP codes that may serve this area
Upper Township Elementary School
Upper Township Primary School
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 786 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
How should investors approach Ocean City, NJ?
The best-fit strategy in Ocean City, NJ is careful cash-flow rentals with hands-on management. That approach the rent and price profile of the market.
What is the average home sale price in Ocean City, NJ?
Median home price in Ocean City, NJ is near $1.1M, with a 5-year CAGR of 0.0%. Prices have been even-keeled and supportive of buy-and-hold strategies.
How quickly do rentals get leased in Ocean City, NJ?
Ocean City, NJ vacancy trends elevated. Investors running standard buy-and-hold plays see reasonable downtime between tenants.
Does Ocean City, NJ favor landlords or tenants?
NJ law tenant-protective for landlords, and Ocean City inherits those rules. Investors should still review local ordinances for rental licensing.
Is Ocean City, NJ a smart market for rental property?
Investors tracking Ocean City, NJ will find a 3.0/5 rating supported by $1.1M median home values and $1,890/mo rents. That profile suits long-term holders targeting steady returns.
You know 08226 now. You don’t know where it ranks.
This page stays free — all of it. What one page can’t tell you is how 08226 compares to every other market. Investor ($19/mo) screens every U.S. ZIP by cap rate, the 1% rule, vacancy and landlord climate, and exports your shortlist.
How 08226 ranks in Ocean City, NJ
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