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Paterson, NJ Short-Term Rentals: Primary-Residence-Only Rule (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified September 2026

Key Facts

Zone
11th–20th Ave, McLean Blvd–Vreeland Ave
Definition
Owner's primary residence per title deed
Excludes
LLC-owned or absentee-landlord rentals
Adopted
Ord. No. 24-023, April 9, 2024
Max penalty
$2,000 fine or 90 days jail

Summary

In the same mapped zone, short-term rentals are allowed only in an owner-occupied home, one that is the primary residence of at least one person on the title deed, under a 2024 ordinance.

OWNER-OCCUPIED HOME: Shall mean a residential structure that is the primary residence of at least one natural person listed on the title deed as owner. ... Except in an "owner-occupied home" as defined above, where the "owner is present" as defined above, "short-term rentals" as defined above are hereby be prohibited within the area bounded as follows...

View official code

Official source re-checked September 7, 2026: no newer edition of the code had been published (publisher’s edition: rev 4713536; v19 updated 2025-12-16; through 12-16-2025).

Full Breakdown

Chapter 275 Article II (Ord. No. 24-023, 2024) bans 'unattended' short-term rentals inside the zone bounded by 11th Avenue, McLean Boulevard, 20th Avenue and Vreeland Avenue unless the home qualifies as an 'owner-occupied home.' Section 275-17 defines that term as 'a residential structure that is the primary residence of at least one natural person listed on the title deed as owner.' A rental unit owned by an LLC, an absentee landlord or an out-of-town investor cannot use the exception, even with a manager on site: the code requires an actual titled owner living there. Outside the mapped zone, no such residency test applies under this chapter.

Violations & Fines

Offering an unattended short-term rental in the zone without qualifying owner-occupancy risks a fine up to $2,000 or 90 days' imprisonment under § 275-19, with each rental day a separate offense.

Frequently Asked Questions

Can an investor-owned property use Paterson's owner-occupied STR exception?
No. § 275-17 requires a natural person listed on the title deed to actually live there as a primary residence: corporate or absentee ownership doesn't qualify.
Does this residency rule apply citywide?
No, only inside the mapped zone bounded by 11th–20th Avenues and McLean Blvd–Vreeland Ave, where unattended short-term rentals are otherwise banned.

Sources & Official References

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