Madison, NJ

  • Overview
  • Performance
  • Listings
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Key Performance Metrics

Market snapshot

Performance indicators for the Madison short-term rental market based on reliable data.

Listings

3 / 23

Reliable / Active

Cap Rate

5%

Middle-Earners Gross Yield

Revenue

$49,695

Middle-Earners Revenue

Occupancy

64%

Middle-Earners Occupancy

Home Value

$1,031,084

Median Home Sale Price

Top Earners

$89,191

Top-Earners Revenue

Madison

Market Revenue Seasonality

Top Listings

Highest revenue

The highest-performing listings in Madison.

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C

Challenging to Investors

Madison Regulations

Madison has no STR-specific ordinance, leaving operators to piece together state and general local requirements (zoning verification, business registration, sales/use tax, Uniform Fire Code, potential change-of-use and inspections), which introduces compliance uncertainty and inconsistent enforcement risk despite no known citywide caps or license fees.

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About Madison

Madison is a charming suburban borough in Morris County, New Jersey, home to approximately 16,500 residents. With its walkable downtown, tree-lined streets, and well-preserved nineteenth-century architecture, it exudes a classic small-town American character while functioning as a comfortable commuter base for the New York metropolitan area. The borough sits roughly thirty miles west of Manhattan, easily reached via NJ Transit rail service, and it serves as a quiet gateway to the rolling hills, parks, and historic sites of the greater Morris County region. Madison is also well known as the home of Drew University and as a neighbor to the historic town of Morristown.

A focal point of the community is the downtown commercial district, centered on Waverly Place and Main Street, where independent boutiques, coffee shops, and restaurants line the sidewalks. Visitors can stroll past preserved Victorian-era buildings, dine in long-running family kitchens, and enjoy a relaxed pace that contrasts with the bustle of nearby New York City. The district's compact, pedestrian-friendly layout makes it a natural gathering place for both residents and out-of-town guests, and the surrounding residential blocks showcase the leafy, established feel that draws many newcomers to the area.

Just a few miles south of Madison lies the greater Morristown area and Morristown National Historical Park, the site that George Washington and the Continental Army used as a military encampment during the Revolutionary War. The park preserves Washington's Headquarters at the Ford Mansion and the encampment grounds at Jockey Hollow, with miles of walking trails through open fields and forest. The drive from Madison to either section of the park typically takes only about ten to fifteen minutes, making it an easy day trip for visitors interested in early American history.

Madison is also a college town, anchored by Drew University, a small liberal arts institution founded in the nineteenth century. The university's wooded campus adds a youthful energy to the borough and hosts the Shakespeare Theatre of New Jersey, which stages classical productions in both indoor and outdoor venues throughout the year. Theater lovers staying in Madison can attend a performance and be back at their rental within minutes. For travelers who want a day in the city, Madison's own train station offers direct service to Manhattan's Penn Station, with the trip generally taking just over an hour.

The combination of small-town charm, cultural amenities, and easy access to both New York City and the region's outdoor and historic attractions makes Madison a particularly appealing setting for a short-term rental. Whether guests arrive for a college reunion, a theater weekend, a hiking trip, or a broader tour of northern New Jersey, the borough offers a comfortable, well-connected home base.

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