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Allentown, PA

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STR Regulations for Allentown, Pennsylvania

Overview: STR Allowance Status

Short-term rentals (STRs) are allowed in Allentown, PA as of 2026, but are subject to specific regulations. They are not prohibited outright. The city requires property owners to obtain a Short-Term Rental Operating License and comply with strict safety, zoning, and tax requirements. Enforcement is active. Zoning is the primary tool for regulation, and availability is contingent on the property's location. A clear distinction is made between casual "homestays" and commercial operations.

How to Start an STR Business in Allentown

  1. Zoning Verification: Confirm the property's zoning district allows STRs. This is the first and most critical step. Contact the Planning Department before purchasing.
  2. License Application: Submit a complete Short-Term Rental Operating License application to the City of Allentown with all required documentation.
  3. Safety Inspection: Facilitate a mandatory safety inspection by a certified city inspector. The property must meet fire safety standards.
  4. Insurance: Secure adequate liability insurance coverage (minimum $1 million) and ensure your homeowner's policy allows for short-term rentals.
  5. Local Contact: Designate a local contact person available 24/7 for emergencies.
  6. Tax Registration: Register with the Pennsylvania Department of Revenue to collect and remit state and local hotel taxes.
  7. Listing: Once the license is approved and inspection is passed, the property can be listed on platforms like Airbnb or VRBO.

Required Documents, Permits, Licenses, and Guidelines

  • Short-Term Rental Operating License: Annual license issued by the City of Allentown.
    • Initial Application Fee: $150
    • Renewal Fee: $100
  • Required Documents for Application:
    • Completed STR license application.
    • Proof of property ownership or authorized management agreement.
    • Certificate of Occupancy demonstrating compliance with zoning laws.
    • Evidence of liability insurance (minimum $1 million).
    • Fire safety inspection certificates.
    • Designation of a local 24/7 contact person.
    • Proof of registration with the Pennsylvania Department of Revenue for tax purposes.
  • Guidelines to Follow:
    • Compliance with Maximum Occupancy Limits (enforced).
    • Adherence to noise ordinances.
    • Compliance with parking requirements.
    • Display of license numbers prominently in all online listings.
    • Maintenance of detailed guest records for city inspection.

Specific Regulations for Allentown (City, County, State)

City of Allentown (Lehigh County):

  • Licensing: Mandatory for all STRs. The license must be displayed online and renewed annually.
  • Zoning: STRs are permitted in commercial districts, mixed-use areas, and designated tourism zones (e.g., downtown). Many single-family residential neighborhoods have restrictions, with some requiring special use permits or having caps on the number of licenses issued. Some areas are completely prohibited.
  • Occupancy & Safety: Enforced maximum occupancy limits. Strict requirements for smoke and carbon monoxide detectors, fire extinguishers, emergency plans, and ADA accessibility compliance.
  • Taxes: A local hotel occupancy tax of 5% is imposed on all short-term rentals for stays of less than 30 days. This is collected from guests and remitted monthly to the city.

Commonwealth of Pennsylvania (State-Level):

  • Definition: A short-term rental is defined as an occupancy or the right to occupancy of a lodging establishment for less than 30 days.
  • Taxes: All short-term rental operators are subject to the Pennsylvania state hotel occupancy tax of 6%. Operators must register for a sales, use, and hotel occupancy tax license with the Department of Revenue.
  • Insurance: There is no state mandate for insurance. However, standard homeowner's policies typically exclude home-based businesses. Riders or separate policies are often necessary.
  • Regulation: There is no statewide ban on STRs. Municipalities, like Allentown, have broad authority under zoning laws to regulate, permit, or prohibit STRs.

Contact Information for Local Authority

  • Entity: City of Allentown, Licensing Department
  • Website: www.allentownpa.gov
  • Planning Department (for zoning verification): Phone number and email are typically listed on the city website's departmental pages. The specific planner for a zoning district can be determined through the department's main line.

Links to Source Pages

What do Airbnb hosts actually earn in Allentown?

Allentown hosts earn a median $25,233/year with $144 ADR and 64% occupancy.

Top performers pull in $32,936+ per year.

See the full Allentown market breakdown

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Allentown

Market Saturation Score

036912
Moderate Saturation
5/ 12
months with declining YoY revenue
5–7 declining months: moderate saturation risk - market may be nearing capacity.
View Full Allentown Market Analysis

Photos of Allentown

Overview of Allentown

Allentown is the largest city in Pennsylvania's Lehigh Valley and serves as the county seat of Lehigh County, with a population of roughly 125,000 residents. Once a thriving industrial hub, the city has spent recent decades reinventing itself, and today it carries the energy of a mid-sized American city in the midst of a cultural revival, with a new arena, revitalized downtown, and growing food and arts scene. It sits about 60 miles north of Philadelphia and roughly 90 miles west of New York City, placing it squarely in the busy Northeast Corridor. The city is best known for hiding the Liberty Bell during the Revolutionary War, for being the subject of Billy Joel's 1982 hit "Allentown," and for serving as a gateway to the Lehigh Valley's historic towns, the Pocono Mountains, and a cluster of regional amusement and outdoor destinations.

The Liberty Bell Shrine at Zion Reformed Church preserves one of the most unusual chapters in American Revolutionary history. In the fall of 1777, the bell was transported from Philadelphia to Allentown and concealed beneath the floorboards of the church to keep it out of British hands. Today, visitors can tour the small museum beneath the church, see a replica of the bell in its hiding place, and learn about the broader story of Pennsylvania's wartime capital relocation. The shrine is located in the heart of downtown Allentown, just minutes from the city's center.

Just west of the city, Dorney Park & Wildwater Kingdom offers a full day of family entertainment. Operating since 1884, the park features more than 60 rides, including roller coasters, a separate water park complex, and a beautifully preserved antique carousel. It is located in South Whitehall Township, roughly a 10-minute drive from downtown Allentown, and is one of the most-visited attractions in the region.

The America on Wheels Museum celebrates the history of American transportation, with a particular emphasis on automobiles, bicycles, and the trucks built in the Lehigh Valley. Housed in a restored industrial building along the Lehigh River, the museum features rotating exhibits of classic cars, vintage motorcycles, and the locally manufactured Mack trucks. It sits about a five-minute drive from the heart of downtown.

Outdoor recreation is never far from Allentown. The surrounding Lehigh Valley offers hiking, biking, and whitewater rafting on the Lehigh River, while the Poconos provide ski areas such as Blue Mountain Resort, about 20 miles to the north. Closer in, the Lehigh Parkway follows Little Lehigh Creek just outside downtown with miles of paved and natural-surface trails for casual visitors.

Allentown's combination of Revolutionary-era history, a freshly revitalized downtown, a major regional amusement park, and easy access to both the Pocono Mountains and the Philadelphia-New York corridor makes it a versatile base for short-term rentals. Guests can fill a weekend with museums, historic sites, and outdoor adventure without ever leaving the Lehigh Valley, while still being within a comfortable day trip of the region's largest cities.

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