500 Bay Ave #403 South · Ocean City, NJ 08226

$574,900

1 bd · 1.0 ba · 989 sqft · Condo · 37 Days on market

Built 1977 Excellent condition Garage $581/sqft · 8% below area Est $623k · 8% under $516/mo HOA · 10% of rent ↓ 4% since listing

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Why this score? — see what drove the D grade

The composite is a weighted blend of 9 inputs, each scored 0–100. Each bar is that input's sub-score; the figure is the points it added to the 100-point composite (weight × sub-score).

• ARV discount +11.0/15.0
• Cash flow +8.1/30.0
• Condition / age +4.8/5.0
• Schools +4.5/10.0
• Livability +4.0/5.0
• 1% rule +3.6/10.0
• Rent growth +2.5/5.0
• DSCR +2.1/10.0
• Appreciation +0.0/10.0

Listing remarks MLS

* RARE DIRECT OPEN BAY CONDO WITH PRIVATE WATERFRONT PATIO * SPECTACULAR SUNSET VIEWS * ONE BED - ONE BATH * OCEAN CITY, NJ * Welcome to 500 Bay Avenue, Unit 403 South, a truly exceptional waterfront residence in one of Ocean City's most desirable bayfront communities. This 1-Bed & 1-Bath offers an ICONIC opportunity with approximately 1,000 square feet of living space with unobstructed, multi-million-dollar open bay views that create an extraordinary coastal lifestyle. One of only six direct bayfront residences in the 60-unit South Building featuring a private waterfront patio, this coveted property delivers front-row views of breathtaking sunsets, the illuminated 9th Street Bridge, passing boats, seasonal fireworks, and Ocean City's iconic Night in Venice celebration. The bright, open-concept layout is filled with natural light and showcases stunning water views from nearly every room. Spacious living and dining areas, newer windows and exterior doors, updated mechanical systems, elevator access, and reserved COVERED parking space #99 add comfort, convenience, and long-term value. Perfectly positioned in the heart of Ocean City, this premier location places you just minutes from award-winning beaches, the Boardwalk, biking, marinas, boating, fishing, waterfront dining, shopping, entertainment, golf, and year-round attractions. Whether you're seeking a luxury second home, primary residence, retirement destination, or investment opportunity, direct open bay properties with private outdoor waterfront space remain among the most limited and sought-after offerings in Ocean City! The home is currently vacant and offering a blank canvas for the new owner to personalize, renovate, or design their ideal waterfront retreat while enjoying one of the most spectacular bayfront settings in Ocean City. Your Key to the Sea is 403! Schedule your private showing today.

Key facts

• Direct open bay
• $516 HOA
• Garage

Tags

• DIRECT OPEN BAY
• PRIVATE WATERFRONT PATIO
• BRIGHT OPEN CONCEPT LAYOUT
• RESERVED COVERED PARKING

What this means for you Summary

Snapshot

• This is a 1-bed/1.0-bath condo listed at $575k. Condition is rated excellent.

Deal economics

• At list price, monthly cash flow is $-571 ($-7k/yr) — negative.
• To cash-flow at today's rent, offer at most $492k (14.4% below list).
• To meet the 1% rule (rent ≥ 1% of price), the offer needs to be $496k (13.7% below list).
• Recommended offer: $492k (14.4% below list) — sets the bar for cash-flow.
• Cap rate 5.1% vs local median 3.4% in Ocean City — top-decile yield for the area; either an underpriced asset or a hidden risk that comps aren't pricing in. Stress-test before assuming the spread holds.

Location & tenants

• Location reads 80/100 on livability (#72 in NJ, #1,762 nationally) — a professional / high-income tenant draw. Strengths: amenities A+, employment A+, health & safety A+; Watch: housing D+, cost of living F.
• Ocean City School District (urban): math 31% / reading 53% proficiency, ranked #212 of 472 in NJ (top 45%) — families likely to look elsewhere, expect single-tenant / working-renter base with shorter leases.
• Zoned schools: Ocean City Primary School (math 54% / reading 42%, grade D, #299 of 1,303 statewide, top 23%, 280 students, 31% FRL); Ocean City Intermediate School (math 26% / reading 49%, grade F, #217 of 431 statewide, top 51%, 370 students, 27% FRL); Ocean City High School (math 33% / reading 63%, grade D, #117 of 399 statewide, top 30%, 1,215 students, 13% FRL) — zoned schools at 24% FRL track the district average.
• Market conditions: 514 active listings in the ZIP; 2 comparable units currently listed for rent nearby; solid renter incomes; 877 units permitted in Cape May County in 2024 (35 in 5+ unit buildings).
• At $4,960/mo this rent would consume 58% of the median local household income ($102k/yr) — very limited rent-growth headroom before tenants either downsize or default.

Forward outlook

• Local home prices are declining (-3.0%/yr); year-one equity from $4k of loan paydown is wiped out by about $17k of value loss. Plan a longer hold.
• Cape May County population projected at -24% by 2050 — secular population decline; favor cash flow + early exit over multi-decade hold.

Negotiation context

• It's been on market 37 days — a 3% lower offer ($558k) is reasonable based on typical stale-listing flexibility.
• 2 sale attempts with the ask held roughly flat each time — persistent listings suggest the price (not the market) is what's stuck; bring a comps-based counter.

Recommended offer $492,314 (14.4% below list)

Questions for the listing agent

1. What do current leases actually rent for vs. the listed asking? Can we see a recent rent roll and the last 12 months of T-12 income?
2. It's been on market 37 days. Have you received any prior offers? Is the seller open to a 14% concession, seller financing, or rate buy-down credit?
3. Built in 1977 — when were the roof, HVAC, electrical panel, plumbing, and water heater last replaced?
4. What does the HOA fee cover, when was the last increase, and are there any pending special assessments or reserve-fund shortfalls?
5. Any open or pending special assessments — roof, HVAC, plumbing, elevator, façade? What's the per-unit balance and payoff schedule, and is the seller paying it off at close or rolling it to the buyer?
6. Is there a deadline driving the sale (1031 exchange, divorce, estate, relocation)? That informs how much negotiation room exists.
7. Schools are A-rated — typically a magnet for longer-tenancy family renters. What's the average tenant stay here, and is there a school-zone premium baked into asking?
8. The area grade is low — what's the realistic commute time and amenity access for the typical tenant pool here? Any planned neighborhood developments (good or bad) we should know about?
9. What's the average days-on-market for RENTAL listings here right now (not sales)? A rising rental-DOM trend means longer vacancies and softer asking-rent achievability than the comps imply.
10. What's the recent tenant-quality profile in this submarket — average credit score on applications, eviction rate, late-payment / NSF rate, and stable-employment percentage? A property-management company in the area should have these aggregated.
11. How much new apartment / multifamily construction is in the pipeline within 1–3 miles? Heavy new supply (>2% of stock underway) typically softens rents 12–24 months out; light construction supports rent growth.

Investment metrics

• 1% rule: 0.86% ✗
• Cap rate: 5.10%
• Cash-on-cash: -4.25%
• DSCR: 0.81
• GRM: 9.7

CMA / ARV

• ARV (median comp): $623,282
• List price: $574,900
• Delta: -3.74%
• Verdict: FAIR
• Comps: 20 within 1.0 mi

Show comp detail 12 sales within ~0.75 mi

Address	Dist	Beds/Ba	Sqft	Sold	Price	$/sf	Match
718 Simpson Ave #2	0.28mi	2/2.0 (+1)	890 (-10%)	0mo	$557,000	$626	61
133 Central #2 Ave #2	0.46mi	2/1.0 (+1)	1,060 (+7%)	3mo	$595,000	$561	59
25 W 14th St #1	0.96mi	2/1.0 (+1)	980 (-1%)	7mo	$519,000	$530	52
935 Ocean Ave #605	0.74mi	2/2.0 (+1)	920 (-7%)	4mo	$690,000	$750	42
137 Central #2 Ave #2	0.46mi	2/1.0 (+1)	840 (-15%)	9mo	$565,000	$673	41
322 Boardwalk #503	0.81mi	2/2.0 (+1)	1,092 (+10%)	5mo	$1,199,900	$1,099	34
921 Park Place #801 #801	0.78mi	2/2.0 (+1)	1,102 (+11%)	5mo	$1,125,000	$1,021	33
322 Boardwalk #604 #604	0.81mi	2/2.0 (+1)	1,086 (+10%)	9mo	$825,000	$760	32
322 Boardwalk #403	0.81mi	2/2.0 (+1)	1,092 (+10%)	9mo	$970,000	$888	31
1312 Ocean Ave #1	1.01mi	2/1.0 (+1)	1,138 (+15%)	8mo	$775,000	$681	28
708 North St Unit B	0.68mi	2/2.0 (+1)	1,175 (+19%)	9mo	$775,000	$660	27
935 Ocean Ave #316	0.74mi	2/2.0 (+1)	1,166 (+18%)	9mo	$610,000	$523	24

Match score weights: distance 35% · size 25% · config 20% · recency 20%. Top-matched comps best support the ARV.

Projected returns pro-forma

-3.0% appreciation · 3.0% rent growth · sell at horizon

5-year hold

• IRR: -23.4%
• Equity multiple: 0.20×
• Total profit: $-129,117
• Equity at exit: $85,719

10-year hold

• IRR: -17.9%
• Equity multiple: 0.02×
• Total profit: $-157,647
• Equity at exit: $49,707

Cash invested: $160,972 (down + closing). Projections, not guarantees.

Landlord ↔ Tenant lean methodology

• Overall (STATE): 21 Tenant-Leaning
• State New Jersey: 21 Tenant-Leaning · D+6
• County: — inherits STATE
• City: — inherits STATE

Anti-eviction Act requires just-cause statewide; rent control in 100+ municipalities; one of the most tenant-friendly states.

Methodology + full state rankings →

Active competition Active MLS

• For sale now: 0 active · 1 under contract

Closed sales set the value; these active listings set current market conditions and a practical price ceiling.

ZIP-level market 08226

• Active inventory: 514
• Price-to-rent: 9.7×

Monthly cashflow live

• Estimated rent: $4,960 medium
• Mortgage (P&I): −$3,015
• Tax est. 1.5%: −$719 /mo · $8,624/yr
• Insurance: −$240
• HOA: −$516
• Vacancy / Maint / Mgmt: −$1,042
• Net cashflow: $-571

Break-even live

Break-even rent $5,682

Max offer price $492,314

Occupancy floor —

Sensitivity live

Price	-10% $-173	-5% $-372	+0% $-571	+5% $-769	+10% $-968
Rent	-10% $-963	-5% $-767	+0% $-571	+5% $-375	+10% $-179
Rate	-1.0pp $-281	-0.5pp $-425	base $-571	+0.5pp $-720	+1.0pp $-871

UW: 25.0% down · 7.5% · 30yr · 1.5% tax · 5.0% vac · 8.0% maint · 8.0% mgmt

Financing live

Cash to close

• Down payment: $143,725
• Closing costs: $17,247
• Club membership (one-time): —
• Reserves months: —
• Total cash needed: —

Rent comps 2 comps

Address	Beds	Baths	Sqft	Rent	$/sqft	DOM	Units	Dist
714 West Ave Unit 1308989P Ocean City, NJ	2.0	1.0	742	$6,384	$8.60	93d	1	0.31mi
935 Ocean Ave Ocean City, NJ	1.0–3.0	1.0–2.5	1112	$2,200	$1.98	93d	1	0.72mi

Property features AI

Finance

• Other: For sale
• HOA & community: Monthly association feeAssociation manages on-site professionalsAssociation amenities include insurance, maintenance, management, sewer, trash, water, cable, and pool

Exterior

• Parking: One-car garageOff-site parking available
• Utilities: Public waterPublic sewerElectric water heater
• Home design: Condominium (500 Bay)Unit is single-levelBuilding with 6–10 stories25+ years old
• Construction: Concrete construction
• Exterior features: Concrete exteriorPoolDeck/porchPatioOutside showerClubhouse/clubroomStorage facilityPool viewWater viewBay frontNo pets allowed

Interior

• Kitchen: DishwasherElectric stoveSelf-cleaning ovenMicrowaveRefrigerator
• Bedrooms: Master bedroom on first floor
• Bathrooms: 1 full bathroom
• Heating & cooling: Central air conditioningBaseboard heatingElectric heating
• Interior features: DishwasherDryerElectric stoveMicrowaveRefrigeratorSelf-cleaning ovenWasherDining roomRecreation/Family roomLaundry/utility roomMaster bathWalk-in/Cedar closet
• Laundry & utility: WasherDryerLaundry/utility room

HOA detail $516/mo · $6,192/yr condo

• Likely covers: water
• Assessments: None detected in remarks — confirm with the listing agent.

Listing history 50 events

1. 2026-08-08
   days on market $574,900 Active 37 DOM
2. 2026-08-07
   days on market $574,900 Active 36 DOM
3. 2026-08-06
   days on market $574,900 Active 35 DOM
4. 2026-08-05
   days on market $574,900 Active 34 DOM
5. 2026-08-04
   days on market $574,900 Active 33 DOM
6. 2026-08-03
   pricedays on market $574,900 Active 32 DOM
7. 2026-07-31
   days on market $599,999 Active 29 DOM
8. 2026-07-29
   days on market $599,999 Active 27 DOM
9. 2026-07-27
   days on market $599,999 Active 25 DOM
10. 2026-07-25
    days on market $599,999 Active 23 DOM
11. 2026-07-24
    days on market $599,999 Active 22 DOM
12. 2026-07-23
    days on market $599,999 Active 21 DOM
13. 2026-07-22
    days on market $599,999 Active 20 DOM
14. 2026-07-21
    days on market $599,999 Active 19 DOM
15. 2026-07-20
    days on market $599,999 Active 18 DOM
16. 2026-07-18
    days on market $599,999 Active 16 DOM
17. 2026-07-16
    days on market $599,999 Active 14 DOM
18. 2026-07-15
    days on market $599,999 Active 13 DOM
19. 2026-07-14
    days on market $599,999 Active 12 DOM
20. 2026-07-13
    days on market $599,999 Active 11 DOM
21. 2026-07-12
    days on market $599,999 Active 10 DOM
22. 2026-07-12
    days on market $599,999 Active 9 DOM
23. 2026-07-10
    days on market $599,999 Active 8 DOM
24. 2026-07-09
    days on market $599,999 Active 7 DOM
25. 2026-07-07
    days on market $599,999 Active 5 DOM
26. 2026-07-06
    days on market $599,999 Active 4 DOM
27. 2026-07-05
    days on market $599,999 Active 3 DOM
28. 2026-07-05
    days on market $599,999 Active 2 DOM
29. 2026-07-02
    days on marketlisting id $599,999 Active 1 DOM

    Show marketing remark (1903 chars)

    * RARE DIRECT OPEN BAY CONDO WITH PRIVATE WATERFRONT PATIO * SPECTACULAR SUNSET VIEWS * ONE BED - ONE BATH * OCEAN CITY, NJ * Welcome to 500 Bay Avenue, Unit 403 South, a truly exceptional waterfront residence in one of Ocean City's most desirable bayfront communities. This 1-Bed & 1-Bath offers an ICONIC opportunity with approximately 1,000 square feet of living space with unobstructed, multi-million-dollar open bay views that create an extraordinary coastal lifestyle. One of only six direct bayfront residences in the 60-unit South Building featuring a private waterfront patio, this coveted property delivers front-row views of breathtaking sunsets, the illuminated 9th Street Bridge, passing boats, seasonal fireworks, and Ocean City's iconic Night in Venice celebration. The bright, open-concept layout is filled with natural light and showcases stunning water views from nearly every room. Spacious living and dining areas, newer windows and exterior doors, updated mechanical systems, elevator access, and reserved COVERED parking space #99 add comfort, convenience, and long-term value. Perfectly positioned in the heart of Ocean City, this premier location places you just minutes from award-winning beaches, the Boardwalk, biking, marinas, boating, fishing, waterfront dining, shopping, entertainment, golf, and year-round attractions. Whether you're seeking a luxury second home, primary residence, retirement destination, or investment opportunity, direct open bay properties with private outdoor waterfront space remain among the most limited and sought-after offerings in Ocean City! The home is currently vacant and offering a blank canvas for the new owner to personalize, renovate, or design their ideal waterfront retreat while enjoying one of the most spectacular bayfront settings in Ocean City. Your Key to the Sea is 403! Schedule your private showing today.

30. 2026-07-01
    days on market $599,999 Active 69 DOM
31. 2026-06-30
    days on market $599,999 Active 68 DOM
32. 2026-06-29
    days on market $599,999 Active 67 DOM
33. 2026-06-28
    days on market $599,999 Active 66 DOM
34. 2026-06-27
    days on market $599,999 Active 65 DOM
35. 2026-06-26
    days on market $599,999 Active 64 DOM
36. 2026-06-22
    days on market $599,999 Active 60 DOM
37. 2026-06-21
    days on market $599,999 Active 59 DOM
38. 2026-06-21
    days on market $599,999 Active 58 DOM
39. 2026-06-18
    price $599,999 Active 56 DOM
40. 2026-06-18
    days on market $625,777 Active 56 DOM
41. 2026-06-17
    days on market $625,777 Active 55 DOM
42. 2026-06-16
    days on market $625,777 Active 54 DOM
43. 2026-06-15
    days on market $625,777 Active 53 DOM
44. 2026-06-13
    days on market $625,777 Active 51 DOM
45. 2026-06-12
    days on market $625,777 Active 50 DOM
46. 2026-06-09
    days on market $625,777 Active 47 DOM
47. 2026-06-08
    days on market $625,777 Active 46 DOM
48. 2026-06-07
    days on market $625,777 Active 45 DOM
49. 2026-06-07
    days on market $625,777 Active 44 DOM
50. 2026-06-04
    days on market $625,777 Active 41 DOM

ⓘ Source: listings_history table (triggers on properties + properties_extension) + one-shot backfill from property_details.listing_events for pre-trigger history.

Taxation est. · year 1

• Rental income: $59,518
• − Mortgage interest: −$32,203
• − Property taxes: −$8,624
• − Insurance: −$2,874
• − Repairs & maintenance: −$4,761
• − Management: −$4,761
• − HOA: −$6,192
• − Depreciation: −$16,724
• Taxable loss: −$16,623
• Est. tax savings @ 24.0%: +$3,989
• After-tax cash flow: $-2,859/yr

For passive investors: Depreciation is non-cash, so a rental often shows a tax loss while cash-flowing — sheltering income. Rental losses are passive: they offset passive income freely, and up to $25,000/yr can offset ordinary (W-2) income if you actively participate and your MAGI is under $100k (phasing out to $0 by $150k); unused losses carry forward. On sale, claimed depreciation is recaptured at up to 25%, and gains may owe capital-gains tax (a 1031 exchange can defer both). Figures are a year-1 estimate at your 24.0% rate — not tax advice; consult a CPA.

Condition & rehab AI · 2 photos

Excellent 95/100 None rehab

This waterfront condo in Ocean City, NJ, offers stunning bay views and is in excellent condition with no visible repairs needed. Upgrades in window treatments, smart home devices, and interior painting would significantly enhance its value.

Value-add opportunities

• Both Upgrade window treatments — Enhances curb appeal and privacy ↑
• Both Install smart home devices — Improves convenience and energy efficiency ↑
• Both Paint interior walls — Freshens the space and improves curb appeal ↑

F Composite school gradezoned avg 45/100

Zoned Schools

Elementary Ocean City Primary School D NJ #299/1,303 Nat'l #14,226/41,679 Middle Ocean City Intermediate School F NJ #217/431 Nat'l #6,708/14,009 High Ocean City High School D NJ #117/399 Nat'l #6,224/17,239

Schools (NCES district)

• District: Ocean City School District
• NCES district ID: 3411970
• Math proficiency: 31% ▼ -12.00%
• Reading proficiency: 53% ▼ -9.00%
• Median HH income: $60,444
• Composite: 37.07/100
• National rank: #4506
• State rank: #212 of 472 in NJ

A Composite livability gradescore 80/100

Livability — Ocean City

• Score: 80/100
• State rank: #72
• US rank: #1762

Category grades

Amenities A+ Commute B- Cost of living F Crime B+ Employment A+ Housing D+ Health & safety A+ User ratings A+

Schools grade is shown separately in the Schools card above.

Census & demographics

• Census place: Ocean City, NJ
• County: Cape May · 88,234 people
• City population: 11,260
• Metro: Atlantic City-Hammonton, NJ
• Population (ZIP): 11,260
• Household income: $101,782
• Rent vs Own: 27.6% rent · 72.4% own
• Severe rent burden: 7% of renters

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Population outlook (Cape May County) Hauer SSP2

• Today (2025): 88,234 people
• By 2030: 84,144 · -4.6%
• By 2040: 75,146 · -14.8%
• By 2050: 67,389 · -23.6%
• By 2075: 55,732 · -36.8%
• By 2100: 44,972 · -49.0%

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Race, ethnicity, and origin ACS 2023

• Neighborhood character: Predominantly White (86%)
• Race & ethnicity: White 86% Hispanic / Latino 9% Black 2% Two or more races 2%
• Hispanic origin (detail): Mexican 7% Puerto Rican 1%
• Common ancestry: Romanian 6% Slovak 2% Scotch-Irish 1%
• Foreign-born: 7% · Canada
• Languages at home: 89% English-only · Spanish 8% Russian/Polish/Slavic 2% Other Indo-European 2%

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Political lean MEDSL · Cape May

• 2024 margin: R (+19.2) · D 39.7% · R 58.9% · Other 1.4%
• 2008→2024 swing: -10.6pp toward R · 2008: -8.7pp · 2024: -19.2pp
• All cycles: 2024: R+19.2 2020: R+15.9 2016: R+19.9 2012: R+8.9 2008: R+8.7

Not yet ingested

• Civics: —

Market trends

• HPI YoY: ▼ -381.90%
• Current HPI: 389.3687
• Rent YoY: —
• Metro: —
• State GDP YoY: ▲ 2.05%
• F500 in state: 34

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Industry mix (Fortune 500 HQ in NJ)

Industry	F500 HQs	Revenue
▸Consumer Goods	3	$31B
▸Pharmaceuticals	2	$153B
▸Technology	2	$21B
▸Insurance	2	$20B
▸Healthcare	2	$19B
▸Financial Services	1	$70B

Property features AI

Finance

• Other: For sale
• HOA & community: Monthly association feeAssociation manages on-site professionalsAssociation amenities include insurance, maintenance, management, sewer, trash, water, cable, and pool

Exterior

• Parking: One-car garageOff-site parking available
• Utilities: Public waterPublic sewerElectric water heater
• Home design: Condominium (500 Bay)Unit is single-levelBuilding with 6–10 stories25+ years old
• Construction: Concrete construction
• Exterior features: Concrete exteriorPoolDeck/porchPatioOutside showerClubhouse/clubroomStorage facilityPool viewWater viewBay frontNo pets allowed

Interior

• Kitchen: DishwasherElectric stoveSelf-cleaning ovenMicrowaveRefrigerator
• Bedrooms: Master bedroom on first floor
• Bathrooms: 1 full bathroom
• Heating & cooling: Central air conditioningBaseboard heatingElectric heating
• Interior features: DishwasherDryerElectric stoveMicrowaveRefrigeratorSelf-cleaning ovenWasherDining roomRecreation/Family roomLaundry/utility roomMaster bathWalk-in/Cedar closet
• Laundry & utility: WasherDryerLaundry/utility room

Price history

-4.1% since first listed

4 events — show timeline

• 2026-07-02 Listed $599,999 SJSRMLS
• 2026-07-02 Listing Removed — SJSRMLS
• 2026-06-19 Price Changed $599,999 SJSRMLS
• 2026-04-23 Listed $625,777 SJSRMLS