First of all, have you thoroughly investigated the demographics of Atlantic City? The entire area has plenty of low income residents and many are on Section 8 which is government assistance. Residents cannot afford high rents and the unemployment rate is high.
You need to investigate whether there is enough people who are looking to rent AND can afford the high rents that you want. For those residents with jobs, what is their income? Are residents employed in lower income jobs or higher income professional jobs? The lower income jobs cannot afford high rents.
As for honoring the current lease - yes, it's the law. You also need to notify the tenant a specific number of days before the lease expires as to whether or not you will renew it and for how much.