Pocono Lake, Pennsylvania Short Term Rental Regulations Guide for Airbnb hosts

Overview: Are Short-Term Rentals Allowed in Pocono Lake, PA?

YES - Short-term rentals are allowed in the Pocono Lake area, but with important caveats. Pocono Lake is a postal designation (ZIP code 18347) that primarily serves Tobyhanna Township and Coolbaugh Township in Monroe County. Both municipalities permit STRs with different regulatory frameworks.

Tobyhanna Township: Permits short-term rentals with a comprehensive ordinance (1,200+ licenses issued)
Coolbaugh Township: Very STR-friendly with approximately 800 licenses issued
Important: Always verify both municipal zoning and private community/HOA rules before investing

What do Airbnb hosts actually earn in Pocono Lake?

Pocono Lake hosts earn a median $41,082/year with $336 ADR and 43% occupancy.

Top performers pull in $65,182+ per year.

See the full Pocono Lake market breakdown

How to Start a Short-Term Rental Business in Pocono Lake

Step 1: Municipality Verification

Contact the relevant township to confirm zoning allows STRs:

Tobyhanna Township: STRs permitted in most zoning districts with permits
Coolbaugh Township: STRs allowed in residential zones with permits (not permitted in commercial/industrial zones)

Step 2: Property Acquisition & Setup

Verify property is in an STR-permitted zone
Ensure compliance with all safety requirements
Install required safety equipment (smoke detectors, CO detectors, fire extinguishers)
Verify adequate parking and access

Step 3: Permit Application Process

Tobyhanna: Apply through online GovOS portal
Coolbaugh: Submit applications directly to township
Complete required inspections
Obtain all necessary licenses and certificates

Step 4: Tax Registration

Register for Pennsylvania Sales Tax License
Obtain Monroe County Hotel Room Excise Tax Certificate
Set up tax collection and remittance systems

Required Documents, Permits, Licenses, and Guidelines

Universal Requirements

Township STR License/Permit (required annually)
Pennsylvania Sales Tax License (for tax collection)
Monroe County Hotel Room Excise Tax Certificate
Insurance Certificate (minimum $500,000 general liability)
Local Contact Designation (24/7 responsible party)

Property-Specific Documentation

Floor Plans (habitable space and bedroom count)
Site Plan (parking and sewage systems)
Safety Compliance Records (detectors, extinguishers)
Parking Plan (off-street parking requirements)
Waste Management Contract (private solid waste hauler)

Tobyhanna Township Specific Requirements

Online application through GovOS portal
Comprehensive documentation requirements
Maximum occupancy: 2 persons per bedroom + 2
Annual license renewal required

Coolbaugh Township Specific Requirements

14-person occupancy limit for STRs
Residential zoning only (no commercial/industrial zones)
Initial permit fees: $200-$300
Annual renewal: $150-$200
Safety inspections required

Specific Regulations by Municipality

Tobyhanna Township (Monroe County)

STR Status: ✅ ALLOWED with permits

Permit Fees: Varies by property type
Occupancy Limit: 2 persons per bedroom + 2
Inspection Required: Yes, comprehensive safety and code
Annual Renewal: Required with compliance verification
Notable: Briefly imposed cap on licenses but rescinded in 2025
Current Licenses: Over 1,200 issued

Coolbaugh Township (Monroe County)

STR Status: ✅ ALLOWED with permits

Permit Fees: $200-$300 initial, $150-$200 annual renewal
Occupancy Limit: 14 persons maximum
Zoning Restrictions: Residential zones only (not commercial/industrial)
Inspection Required: Yes, prior to permit issuance
Processing Time: 2-4 weeks
Current Licenses: ~800 issued

State-Level Pennsylvania Requirements

Pennsylvania Hotel Occupancy Tax: 6% (29 nights or less)
Pennsylvania Sales Tax: 6% of gross receipts
Monroe County Hotel Excise Tax: 3% (properties in Monroe County)

State-Level Regulations (Pennsylvania)

Tax Obligations

State Hotel Occupancy Tax: 6% on rentals ≤29 nights
State Sales Tax: 6% on gross rental receipts
Local Hotel Excise Tax: 3% in Monroe County
Filing Requirements: Monthly/quarterly filing depending on volume

Safety Requirements

Smoke detectors on each level and in bedrooms
Carbon monoxide detectors near fuel-burning appliances
Fire extinguishers in kitchen and on each level
Emergency contact information display
Clear exit marking and handrails

Legal Framework

2019 PA Supreme Court Decision: Slice of Life, LLC v. Hamilton Township upheld municipal authority to regulate STRs through zoning
Municipalities can exclude transient uses from residential zones
Each municipality has independent regulatory authority

Contact Information

Tobyhanna Township (Monroe County)

Phone: (570) 894-8490
Website: tobyhannatownshippa.gov
STR Portal: tobyhannatownshippa.gov/str
Address: Tobyhanna Township Building, 105 Government Center Way, Pocono Pines, PA 18350

Coolbaugh Township (Monroe County)

Phone: (570) 894-8490
Website: coolbaughtwp.org
STR Information: coolbaughtwp.org/departments/short-term-rental/
Address: 5841 Municipal Drive, Tobyhanna, PA 18466

Monroe County Government

Planning Commission: (570) 517-3100
Website: monroecountypa.gov
Address: 1 Quaker Plaza, Room 105, Stroudsburg, PA 18360

Pennsylvania Department of Revenue

Taxpayer Services: (717) 787-8201
Website: revenue.pa.gov
Online Services: Online registration and filing available

Important Links to Source Pages

Primary Regulatory Sources

Tobyhanna Township STR Portal - Official STR application and information
Coolbaugh Township Short-Term Rental Rules - Township regulations and requirements
Pennsylvania Department of Revenue - State tax registration and compliance
Monroe County Hotel Room Excise Tax Certificate - County tax information

STR-Friendly Community Resources

Short-term Rental Friendly Pocono Communities - HOA/POA regulations overview
Top 10 STR-Friendly Communities - Investment targeting guide

Legal Framework

Slice of Life v. Hamilton Township Zoning Hearing Board - PA Supreme Court decision on municipal STR regulation authority
Short-Term Rental Municipal Scorecard - Comprehensive township-by-township breakdown

⚠️ Critical Warning: Regulations change frequently. Always verify current requirements with local authorities before purchasing or operating a short-term rental property. Both townships have ongoing ordinance updates and enforcement activities.

Next step

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Ask the AI Advisor about Pocono Lake

Pocono Lake is a small unincorporated community in Tobyhanna Township, Monroe County, in the Pocono Mountains of northeastern Pennsylvania. With a year-round population of only a few thousand residents, it has the relaxed, wooded feel of a mountain lake community rather than a traditional town. The area is best known as part of the broader Poconos vacation region, drawing visitors with its forested setting, lake recreation, and proximity to ski resorts, water parks, and casino entertainment. Pocono Lake sits roughly 100 miles west of New York City and about 100 miles north of Philadelphia, making it an accessible weekend destination for both metropolitan regions.

Just a few minutes from the community, Tobyhanna State Park offers nearly 5,000 acres of Pocono Plateau forest wrapped around a 170-acre lake. The park is a four-season destination, with boating, fishing, and a sand beach in warmer months, and cross-country skiing and snowmobiling once winter arrives. Its trail network also links to the larger Pinchot Trail system for hikers looking to spend a full day on foot.

A short drive east brings visitors to Camelback Resort in Tannersville, one of the largest four-season resort complexes in the Poconos. Camelback operates the region's biggest ski mountain in winter and converts its slopes into a water park, mountain coaster, zipline course, and adventure park during the warmer months. The resort's broad appeal makes it a reliable anchor for year-round bookings.

A bit farther south, the Pocono Raceway in Long Pond hosts NASCAR Cup Series races and other major motorsport events, drawing tens of thousands of fans for race weekends. Its triangular layout, the first of its kind in NASCAR, makes it a distinctive draw for racing enthusiasts who often seek nearby lodging.

For travelers who want a blend of nature, gaming, and dining, Mount Airy Casino Resort in Mount Pocono provides slots, table games, live entertainment, and a spa within roughly fifteen minutes of Pocono Lake. Combined with the region's outlet shopping in Tannersville and the network of state parks and lakes surrounding the community, Pocono Lake's mix of outdoor recreation, family-friendly attractions, and easy access from two major East Coast cities makes it a strong fit for short-term rental owners looking to capture both weekend leisure travelers and seasonal vacationers.