Anthony Licciardello | May 9, 2026
ADU New Jersey
By Anthony Licciardello, The Prodigy Team
NYS/NJ Licensed Broker · Long Branch & Monmouth Coastal Specialist · Series Part 4 of 5
Asbury Park downtown closed at a $648K median in 2025, up 4.4% YoY, with hot homes clearing in 17 days at 7% over list. While most of Monmouth County still requires a use variance for an ADU, Asbury Park adopted Article 13-1400 of its Land Use Code in April 2024 and pairs the ordinance with an affordable-ADU grant program of up to $35,000 per qualifying unit. Add the Netflix Studios Fort Monmouth buildout and the long-term housing pressure across the coastal corridor, and the math for a permitted ADU in Asbury Park is the most compelling on the Jersey Shore. Somerset County is the inverse — large suburban lots, no modern ordinances, almost everything goes through the variance path.
This is part 4 of our five-part series. Post 1 covered the statewide landscape; Post 2 the friendly markets; Post 3 the variance path. This one tackles the bifurcated reality of Monmouth and Somerset.
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$648K Asbury Park Median +4.4% YoY · 2025 |
$35K Max ADU Grant Asbury Park program |
17 days Hot Home DOM +7% over list |
10 yr Deed Restriction For grant ADUs |
Asbury Park's City Council adopted Ordinance 2024-7 on March 6, 2024, effective April 16, 2024. The ordinance — codified as Article 13-1400 of the Land Use Code — created an explicit ADU framework across most residential and mixed-use zones, paired with a city grant program funded through municipal affordable-housing reserves. The Asbury Park downtown market was already running hot before the ADU rollout — $648K median, 29-day overall DOM with hot homes at 17 days — and the ordinance is partly a response to that pricing pressure on year-round residents.
| Asbury Park ADU Rule | Specific Standard |
|---|---|
| Permitted zones | R-1, R-2, R-3 (residential), B (business), Scattered Site, Washington Ave Redevelopment Area |
| Quantity | One ADU per lot |
| Form | Detached structure, attached addition, garage conversion, or carved-out portion of main house |
| Size | ADU cannot be larger than the main dwelling |
| Stories / height | Two stories max; 20-ft height limit |
| Owner-occupancy | Required (owner in main or ADU) |
| Entrance | Separate from main dwelling |
| Parking | One off-street space (driveway permitted) |
| Short-term rentals | Prohibited on the entire property if an ADU is present |
| Permanence | Permanent structures only — no RVs, trailers, mobile homes, or temporary structures |
| Compliance | Annual registration requirement |
Asbury Park pairs its ADU ordinance with a construction grant funded through the city's affordable-housing program. Per the City of Asbury Park's official ADU page, owners who build a deed-restricted affordable ADU meeting state requirements and accept a tenant assigned from the city's affordable-housing wait list are eligible for a construction grant of $25,000 to $35,000, with a minimum 10-year deed restriction.
The exact award within the $25K–$35K band depends on the income tier of the assigned tenant and other program criteria. Owners who exit the program early repay the grant pro-rated. To confirm current amounts and eligibility before applying: Director of Planning & Redevelopment Michele Alonso, 732-502-5711, or visit cityofasburypark.com/479/ADU-New-Ordinances.
⬢ Owner Note · The Math
On a $250,000 garage-to-ADU conversion in Asbury Park, a $35,000 grant is a 14% reduction in your basis. Add the prevailing $1,800–$2,400/month qualifying-tenant rent over 10 years, and the program economics work for owner-occupants whose primary motivation isn't peak market-rate rent. They don't work if your model assumed $3,000+ market rents — the grant constrains you to below-market rents during the deed restriction. Read the math before you apply.
Bradley Beach has long-standing accessory-apartment provisions in its zoning code with parking requirements, predating the modern ADU framework. Long Branch, Red Bank, Eatontown, Neptune, Marlboro, Manalapan, Holmdel, Colts Neck, Howell, Wall, and Middletown are largely silent or restrictive (see our Holmdel market analysis for context on the larger-lot suburban dynamics). A homeowner in any of these towns would be on the variance path — same $15K–$40K cost stack and 4–9 month timeline covered in Post 3.
Shore-town quirks that change the math:
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Quirk 1 Flood Zones |
Properties in FEMA Zone A or V have base flood elevation requirements that affect ADU construction. A detached ADU in a flood zone may need to be elevated, dramatically changing cost and feasibility. Pull a FEMA elevation certificate before designing. |
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Quirk 2 STR Politics |
Most Monmouth shore towns have STR registration regimes. ADUs in modern ordinances explicitly cannot be Airbnb'd. Variance applications that hint at STR intent will fail. (For shore-town short-term rental economics generally, see our LBI market report.) |
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Quirk 3 Lot Coverage |
Tight beach blocks have aggressive impervious-coverage limits that constrain detached ADUs even where zoning is otherwise sympathetic. A 750 sq ft cottage plus required parking can blow your max coverage. |
⬢ Anthony Licciardello
The Monmouth coastal corridor is the market I work every day. ADU optionality, flood-zone implications, the Asbury Park grant program — it's all part of the same conversation about what your property can actually do.
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✓ Coastal Specialist Long Branch, Asbury Park, Ocean Grove, Bradley Beach, Belmar — block-by-block expertise. |
✓ Flood-Zone Read Where elevation requirements kill an ADU build, and where they don't. |
✓ Grant Navigation Whether the Asbury Park grant program math works for your specific lot and goals. |
Call/Text: (718) 873-7344 · Schedule: ProdigyRE.com
Free home valuation. No pressure. Just real numbers from someone who works this market every day.
Somerset County is the inverse of Asbury Park. Large suburban lots in places like Bedminster, Bernardsville, Far Hills, Basking Ridge, Bernards, Hillsborough, and Montgomery have the physical room for an ADU — but their zoning ordinances generally don't list ADUs as a permitted use, and the local political climate isn't pushing for change.
| Somerset Town/Area | ADU Treatment in 2026 |
|---|---|
| Bridgewater (Ch 126) | Former 1985 ADU conversion provision repealed; now silent |
| Franklin Township | Limits to 2 units per lot; ADUs typically not permitted as-of-right |
| Somerville / Bound Brook / Manville | Older urban-style; legalize-existing path most realistic |
| Hillsborough / Montgomery | Suburban single-family; variance required |
| Bernards / Basking Ridge / Bernardsville / Far Hills / Bedminster | Large-lot single-family; variance required, traditionally cautious zoning boards |
| Branchburg | Agricultural exemptions may allow farm-related accessory housing in limited circumstances |
One niche option worth knowing: several Somerset municipalities have ECHO (Elder Cottage Housing Opportunity) provisions on the books — temporary accessory cottages for an elderly relative (typically age 60+), often capped at 750 sq ft, removed when no longer needed. ECHO units are not lifestyle ADUs and not income units, but for the multigenerational-care use case they can be a faster path than a full variance.
⬢ Owner Note · Septic and Wells
Many Somerset properties are on septic and well rather than municipal sewer. Adding an ADU often requires a septic upgrade — NJDEP rules govern, and a system rated for a 3-bedroom main house may not legally support an additional dwelling unit. Septic upgrades run $20K–$50K and can be a project killer. Pull your septic permit and have a licensed contractor assess capacity before assuming an ADU is feasible.
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Tier 1 Asbury Park · Best Path |
Modern ordinance + grant program + strong rental fundamentals + expanding shore-town corridor. The clearest path to a permitted, financially viable ADU in Monmouth or Somerset in 2026. |
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Tier 2 Multigen Family Use |
Sympathetic variance applications in Holmdel, Colts Neck, Bernards, Basking Ridge, and similar towns can succeed when the use case is clearly an aging parent or family member with disability. Larger lots, sympathetic boards, no opposition. |
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Tier 3 Investor-Driven · Hard Path |
Variance applications that read as income-driven without family use cases face long odds in suburban Monmouth and Somerset. Reposition the application or wait for state preemption. |
Q
Per the city's official ADU page, owners who build a deed-restricted affordable ADU and accept a tenant from the city's affordable-housing wait list are eligible for a construction grant of $25,000 to $35,000, with a minimum 10-year deed restriction. Confirm current amounts and program criteria with the Director of Planning & Redevelopment Michele Alonso at 732-502-5711 before relying on a specific number for your application.
Q
Sometimes — but elevation requirements add cost and complexity. Detached ADUs in FEMA Zone A or V typically need to be elevated above base flood elevation, which can add tens of thousands to the build and may collide with local height limits (Asbury Park's 20-ft rule, for instance). Pull a current elevation certificate before designing anything.
Q
No. Article 13-1400 prohibits short-term rentals on the entire property if an ADU is present. This applies to both the ADU and the main house. The ordinance is designed to add long-term housing stock to a market under heavy short-term-rental pressure, not to create more vacation inventory.
Q
For multigenerational care use cases, yes — variance approval rates rise meaningfully when the proposed occupant is an aging parent or family member with disability. Several Somerset towns also have ECHO ordinances tailored to this use case. Septic capacity is the silent project-killer; check first.
Q
Likely, on a multi-year horizon. Long Branch, Red Bank, and Bradley Beach are the most plausible next movers given housing pressure and existing political conversations. The Mount Laurel Fourth Round implementing-ordinance deadline (March 15, 2026) and continuing pressure from S-1786 may accelerate adoption in towns that need ADUs to round out their Fair Share Plans.
Asbury Park is the highest-leverage ADU town in our coverage area outside of Maplewood, Montclair, South Orange, and Jersey City. The grant program isn't right for every owner — but for the right owner-occupant on the right lot, it's the most subsidized residential build in 2026 New Jersey. Outside Asbury Park, Monmouth is variance territory and Somerset is variance-with-septic-issues territory. Run the math honestly. Related reading: Post 1 — The NJ ADU Playbook · Post 2 — Hudson and Essex · Post 3 — Union and Middlesex · Post 5 — From Idea to CO.
About the Author
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NYS/NJ Licensed Broker · The Prodigy Team 20+ years and 5,000+ closed transactions. Long Branch and Monmouth coastal corridor specialist. ProdigyRE.com. |
Prodigy Real Estate is an innovative real estate company offering high-end video production, home valuation services, purchasing, and home sales. Serving New York and New Jersey.