New Jersey Town Threatens Jail Time for Illegal World Cup Home Rentals

In Northern New Jersey, the hot topic among residents is the upcoming World Cup games being played at MetLife Stadium. 

The eight games being played at the East Rutherford, NJ, home to the NY Jets and NY Giants, just five miles outside of Manhattan, is going to be a massive revenue driver for the state. 

And there are ways homeowners can get in on the action—but only if you live in a city that allows for short-term rentals. 

AirBnbs and other rentals in NJ 

Regulation of short-term rentals in the Garden State is not governed by a single statewide law. The state’s role is limited to overseeing taxation, while the authority on if and how platforms like Airbnb can operate rests with individual cities and towns.

For instance, in North Bergen, NJ, a new ordinance was put in place by the town in March stating that short-term rentals were permitted only in limited circumstances where property owners live at the locations as their primary residence.

Additionally, rentals are restricted to 60 nights per year and no one can have more than two short-term rental permits.

“Our goal is to maintain safe, stable residential communities while ensuring that any short-term rental activity operates with proper oversight and accountability,” Mayor Nick Sacco wrote in a statement via News 12 New Jersey. 

While this may not have been in response to the upcoming World Cup games, it certainly has implications. 

Around the same time, Airbnb began offering a $750 bonus to attract more hosts in the surrounding towns. Homeowners who signed up and completed their first rental transaction by July 31 are eligible for the bonus. With the eight games being played between June 13 and July 19, 2026, it’s clear the rental platform was hoping to meet the demand from folks coming in from out of state for the event. 

Airbnb hosts are expected to welcome approximately 25,000 guests across the tristate area and deliver nearly $6,000 in supplemental income to each local host, according to the platform. 

In a time when prices on everything from gas to groceries are at their peak, few homeowners would turn down the opportunity to put a few extra thousand dollars in their pocket. 

However, depending on where you live, you need to be very careful, as there are serious consequences attached to running a short-term rental illegally. 

Where you can run an AirBnb in NJ and where you can’t

NJ.com identified 75 towns that do not permit short‑term rentals. They include some of the municipalities closest to the stadium, including Carlstadt, Lyndhurst, and East Rutherford itself. The town’s code states that short-term occupancy “has been identified as a community concern due to the potential for increased traffic, noise, high occupant turnover and increased density in residential neighborhoods.”

Some of the surrounding towns made exceptions in the lead-up to the games. 

Clifton, NJ, a quick 10 minute drive to the stadium, passed an ordinance in February that would allow homeowners to rent their properties for short terms. Due to a considerable budgetary shortfall, Clifton approved the amendment to its local bed and breakfast regulations, but included a sunset clause; it will expire on Dec. 31 unless an extension is granted.

Other towns have kept to their strict no short-term rental policies, each coming with strict fines if violated.

In Fort Lee, NJ, where short-term rentals of 30 days or less are prohibited, a fine of $1,250 can be imposed. In Lodi, NJ, the restriction is the same, while the penalty is a minimum of $2,000 and each day between 1 and 30 days can be considered a new and separate violation subject to that same fee. 

Meanwhile, in the city of Kearny, NJ, located less than 10 miles from Metlife Stadium, the local government actually tightened its short-term rental restrictions ahead of the FIFA games. 

Its town council added a ban on short-term rentals at multifamily homes, where previously it only had a ban on short-term rentals at single-family homes, citing the potential for increased traffic, high occupant turnover, and general health and safety risks. 

Violating the ban comes with steep risks. A first violation is punishable by a fine of up to $750, a jail term of up to 10 days, or both. For a second offense, the fine increases to a maximum of $1,200 and/or up to 20 days in jail. Subsequent offenses (third and beyond) carry the most severe penalties, which can include fines up to $2,000 and/or imprisonment for up to 30 days.

If you are considering hosting on AirBnb or any other rental platform, make sure to consult local laws before getting started.