Overview: Are Short-Term Rentals Allowed in New Holland, PA?

Short-term rentals are significantly restricted in New Holland, PA. According to the Borough of New Holland Zoning Ordinance, short-term rentals are expressly and specifically prohibited in all zoning districts except the C-2 Commercial District. Only commercial properties along major thoroughfares in the C-2 district may host tourist establishments, rooming houses, boarding houses, or bed and breakfast establishments for not more than eight persons.

This represents a highly restrictive regulatory environment that severely limits opportunities for STR investment within New Holland's residential areas, making the borough largely prohibitive for typical STR operations.

How to Start a Short-Term Rental Business in New Holland

Given New Holland's restrictive zoning, the pathway to legal STR operation is extremely limited:

Option 1: C-2 Commercial District (Highly Restricted)

• Acquire property within the C-2 Commercial District along major thoroughfares
• Property must accommodate no more than eight persons
• Must qualify as tourist, rooming, boarding, or bed and breakfast establishment
• Must comply with all commercial zoning requirements
• This option is extremely limited and likely not viable for most STR investors

Option 2: Alternative Market Strategies

• Consider neighboring Lancaster County municipalities with more permissive STR policies
• Evaluate properties in Lancaster City, where STRs are more comprehensively regulated but permitted
• Research other Lancaster County boroughs and townships with varying STR regulations

Required Documents, Permits, Licenses, and Guidelines

New Holland C-2 District Requirements (if applicable):

• Zoning permit for commercial use
• Building permits as required
• Business license from the borough
• Fire safety compliance
• Health department approvals (if applicable)
• Insurance coverage meeting borough requirements

State-Level Pennsylvania Requirements (for permitted locations):

Business Registration:

• Pennsylvania Sales, Use, and Hotel Occupancy Tax License (if collecting taxes directly)
• Registration with Pennsylvania Department of Revenue
• Business privilege license (municipality-specific)

Tax Compliance:

• Pennsylvania Hotel Occupancy Tax (6% state rate)
• Lancaster County hotel tax (additional local rate)
• Federal income tax reporting
• Pennsylvania personal income tax (3.07%)

Insurance Requirements:

• General liability coverage (minimums vary by municipality)
• Property insurance
• Commercial STR insurance (recommended)

Specific Regulations for Short-Term Rentals

New Holland Borough Regulations (Zoning Ordinance Section 701):

Prohibited Uses:

• Short-term rentals explicitly banned in all residential districts
• No STR operations permitted in R-1, R-2, R-3, or other residential zoning classifications
• Properties must comply with traditional residential occupancy definitions

C-2 Commercial District Exception:

• Limited to eight persons maximum
• Must qualify as tourist, rooming, boarding, or bed and breakfast establishment
• Subject to all commercial development standards
• Must maintain commercial character of district

Lancaster County Context:

Lancaster County consists of 60 municipalities with varying STR regulations. Examples include:

• Permissive municipalities: Lancaster City, some townships and boroughs
• Restrictive municipalities: Strasburg (complete ban), other communities with significant restrictions

Pennsylvania State-Level Framework:

Tax Obligations:

• State hotel occupancy tax: 6%
• Lancaster County hotel tax: Up to 5% (depending on specific municipality)
• Total effective tax rate: 11-13% for guests

Safety and Building Requirements:

• Smoke detector and carbon monoxide detector installations
• Fire safety compliance
• Building code compliance
• Health department oversight (where applicable)

Municipal Ordinances and Zoning Framework

Pennsylvania's STR regulation operates under the Pennsylvania Municipalities Planning Code, which delegates zoning authority to local municipalities. New Holland has exercised this authority to implement one of the most restrictive STR policies in Lancaster County.

Key Legal Precedents:

• Slice of Life v. Hamilton Township (2019): Established that purely transient use of residential properties can be prohibited
• Monroe County Court decisions: Reinforced municipal authority to regulate or ban STRs in residential areas

Contact Information

New Holland Borough Government

Address: Borough of New Holland, Pennsylvania Phone: (717) 354-8383 Website: newhollandborough.org

Key Departments:

• Borough Secretary: Primary contact for business licenses and permits
• Zoning Officer: Zoning compliance and C-2 district inquiries
• Building Inspector: Construction and safety permit requirements

Lancaster County Contacts

Lancaster County Planning Department Address: 150 North Queen Street, Suite 320, Lancaster, PA 17603 Phone: (717) 299-8333 Website: lancovacountypa.gov

Lancaster County Tax Collection Phone: (717) 299-8211 For hotel tax remittance and compliance

Pennsylvania State Contacts

Pennsylvania Department of Revenue Hotel Occupancy Tax Division Address: Bureau of Audits, 280 Finance Building, Harrisburg, PA 17120 Phone: (717) 787-6454 Website: pa.gov/agencies/revenue/

Local Government Commission Address: Room 108 Finance Building, Harrisburg, PA 17120 Phone: (717) 787-4397 Website: jsq.legis.state.pa.us

Links to Source Pages

New Holland Zoning Ordinance: newhollandborough.org/wp-content/uploads/2019/03/Zoning-Ordinance-Final-1.pdf

Pennsylvania Joint State Government Commission STR Report: jsg.legis.state.pa.us/resources/documents/ftp/publications/2025-03-17%20Short-term%20Rental%20Web%203.17.25.pdf

Pennsylvania Department of Revenue - Home Sharing: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/home-sharing.html

Lancaster County STR Resources: www.bnbcalc.com/blog/short-term-rental-regulation/lancaster-county-pennsylvania-guide

Lancaster Online STR Coverage: lancasteronline.com/news/local/here-are-the-rules-proposed-in-place-for-short-term-rentals-in-different-lancaster-county/collection_08dcb84a-f042-11ed-82f3-63e037ad48d2.html

Investment Recommendation: Given New Holland's extremely restrictive STR environment, investors should focus on neighboring Lancaster County municipalities with more permissive regulatory frameworks. The borough's near-complete ban on STRs in residential areas makes it unsuitable for typical STR investment strategies.