Legally Zoned Duplex With Two
For Sale
$540,000
205 S Vermont Ave Ave, Atlantic City, NJ 08401
MULTI_FAMILY - Atlantic City, NJ
Property Size2,312 SF
Price / SF$233.56
Days on Market439
Property Features for 205 S Vermont Ave Ave
General Information
Property type
Residential Multi Family
Property subtype
Duplex
Standard status
Active
Size
2,312 SF
Listing Agency:
BHHS Fox & Roach Northfield · Berkshire Hathaway HomeServices
Listed By:
Goran Cedevski · License #1755689
(609) 334-0238
Added: May 31, 2025
Changed: Jul 23
Last Checked: Aug 12 at 7:06AM
MLS# 596817
Copyright © 2026 Berkshire Hathaway HomeServices Fox & Roach, Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This duplex offers two separate residential units with the legal structure to support duplex living. The upper unit features six bedrooms and two bathrooms, and the lower unit provides two bedrooms and one bathroom. Both units are currently rented.
The property is described as located on a beach block with the Atlantic City beach within a short walk.
Per the provided zoning information, the LH-2 Zoning District permits multi-family low-rise and mid-rise residential buildings, and it also lists opportunities for restaurants, bars, non-casino hotels, townhouses, and other uses. The duplex configuration provides flexibility for an owner-occupant or an investor seeking rental income from two units.
The property is described as located on a beach block with the Atlantic City beach within a short walk.
Per the provided zoning information, the LH-2 Zoning District permits multi-family low-rise and mid-rise residential buildings, and it also lists opportunities for restaurants, bars, non-casino hotels, townhouses, and other uses. The duplex configuration provides flexibility for an owner-occupant or an investor seeking rental income from two units.
Key Highlights
- Legal duplex zoned for the LH‑2 Zoning District, permitting multi‑family, low‑rise and mid‑rise residential buildings
- Duplex includes a 6‑bedroom, 2‑bath upper unit currently rented for $1,500/month
- Ground‑level unit features 2 bedrooms and 1 bathroom and is currently rented for $1,100/month
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$26,330
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.88%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$526,600
$526.6K
Cap Rate 7%
$376,143
$376.1K
Cap Rate 9%
$292,556
$292.6K
Market Conditions
NOI Build-Up for 2,312 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$40.2K $17.40/SF
− Vacancy
−$2.6K −$1.13/SF
EGI
$37.6K $16.27/SF
− OpEx
−$11.3K −$4.88/SF
NOI
$26.3K $11.39/SF
Area
Atlantic County, NJ
Vacancy
6.50%
Lease Rate
$17.40 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$526,600
Cap Rate 7%
$376,143
Cap Rate 9%
$292,556
Alternative Uses
Best Use
Multifamily LT 5
$376.1K
$329.1K – $438.8K
NOI $26,330 @ 7.0% cap · market cap 4.88%
Second Best
Apartment 5plus
$330.6K
$289.3K – $385.7K
NOI $23,142 @ 7.0% cap · market cap 4.29%
Theoretical Best
Warehouse
$861.0K
$753.4K – $1.00M
NOI $60,268 @ 7.0% cap · market cap 11.16%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
631
Businesses Nearby
Explore this area
Business Placement
Demographics for 08401, NJ
38,536
Population
20,116
Households
1.9
Avg Household Size
38
Median Age
21%
College-Educated
76%
High-School Grad
10.7 sq mi
ZIP Area
3,601
Density / Sq Mi
$36,375
Median Household Income
$28,915
Median Earnings
$1,086
Median Rent
$189,600
Median Home Value
Market
Vacancy Rate% for Multifamily in Northeast region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Duplex - Duplex with a 2-bedroom, 1-bath unit and a 6-bedroom, 2-bath unit, both currently rented; LH-2 zoning.
Where is this duplex located?
The property is located at 205 S Vermont Ave Ave Atlantic City, NJ.
What is the asking price?
The asking price for this property is $540,000.
What are key features of this property?
This property features: Legal duplex zoned for the LH‑2 Zoning District, permitting multi‑family, low‑rise and mid‑rise residential buildings; Duplex includes a 6‑bedroom, 2‑bath upper unit currently rented for $1,500/month; Ground‑level unit features 2 bedrooms and 1 bathroom and is currently rented for $1,100/month
