Performance indicators for the Highlands short-term rental market based on reliable data.
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Challenging to Investors
STRs are technically allowed but under a strict regime: owner-occupancy/principal-residence requirement, a 90-day annual cap, quarterly inspections, advertising limits, and significant fines/possible revocation, making compliance costly and operations constrained.
Local STR Agent
STR specialist · Highlands, NJ
Highlands is a small coastal borough in Monmouth County, New Jersey, with a population of approximately 4,800 residents. Set on a narrow stretch of land between the Shrewsbury River and the Atlantic, the community has a quiet, maritime character rooted in its working harbor heritage and its role as a launch point for visitors heading to Sandy Hook. Often described as the gateway to Sandy Hook and the surrounding recreational lands, Highlands lies roughly forty miles south of New York City across Lower New York Bay, reachable by car in about an hour and a half depending on traffic, and is within easy reach of other Jersey Shore destinations like Long Branch, Asbury Park, and Red Bank.
A short drive south of the borough center brings visitors to Sandy Hook, the sandy barrier-beach peninsula that forms the northern tip of the New Jersey coast and the core of the Gateway National Recreation Area. Managed by the National Park Service, the area offers a wide public beach, surf fishing, paved and unpaved biking and walking paths, birding habitat along the shoreline ponds, and the historic Fort Hancock district. The park is a magnet for day-trippers from across the region and forms the single biggest draw for anyone staying in Highlands.
Within Sandy Hook stands the Sandy Hook Lighthouse, the oldest surviving and still-operational lighthouse in the United States. Built in 1764, the whitewashed tower is open seasonally for guided climbs that reward visitors with views across Sandy Hook Bay toward the New York skyline. Its presence gives the area a tangible sense of history and serves as a recognizable landmark for travelers approaching from the north.
Just up the hill from the borough's commercial core, the Twin Lights of Navesink overlook the entrance to New York Harbor from a bluff that has guided mariners for more than a century. The site is famous both for its striking nineteenth-century lighthouse towers and for its role in maritime communications history, including early demonstrations of wireless telegraphy. The grounds and museum remain a popular stop for visitors who want sweeping ocean views without the beach crowds.
A few minutes inland, Hartshorne Woods Park offers a quieter natural counterpoint, with hardwood forest, river overlooks, and miles of marked trails for hiking and mountain biking along the Navesink River. Together, these nearby destinations give Highlands a layered appeal, combining ocean beaches, historic sites, and wooded parkland within a compact area.
For short-term-rental owners, Highlands is an interesting proposition precisely because of this concentration of draws. The borough sits minutes from one of the most visited beach units in the National Park System, close to cultural hubs like Red Bank and Asbury Park, and within a viable day-trip distance of New York City. The combination of natural scenery, deep history, and a small-town coastal atmosphere makes it well suited to travelers who want a Jersey Shore stay that feels both relaxed and connected to the broader New York metropolitan region.