In NJ, the towns largely have authority for short-term rental (STR) laws: towns can define what constitutes a STR, the number allowed, where they can operate in the town (zones), licensing, fees, standards, etc. Investors and second homeowners use the income from STRs to pay for their housing costs. In Cape May County, the mainland communities can enact STR laws to protect the housing availability for year-round residents, protect neighborhoods from transient occupancy and protect the local character of communities from the impacts of STRs.