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Wilkes Barre

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Wilkes Barre, PA

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STR Regulations for Wilkes Barre, Pennsylvania

Overview: Are short-term rentals (STRs) allowed in Wilkes-Barre, PA?

  • Yes, STRs are likely allowed in Wilkes-Barre, but the permissibility depends on the property’s zoning and local restrictions. Pennsylvania is a Dillon’s Rule state; zoning and land use are governed by local ordinances (municipal and county). Under state law, short-term rentals are treated as “lodging establishments” (occupancy for less than 30 days), which are subject to the PA Lodging and Housing Code and the state hotel occupancy tax.
  • In residential zoning districts, many municipalities (including those in the Scranton/Wilkes-Barre area) interpret “single-family residential use” to require a “single housekeeping unit” and therefore prohibit transient use. The Pennsylvania Supreme Court’s 2019 decision in Slice of Life, LLC v. Hamilton Township upheld municipal authority to prohibit transient use in residential zones. In practice, many communities limit or prohibit whole-home STRs in residential districts while permitting some form of short-term lodging in commercial or mixed-use zones. As of early 2025, a statewide definition of STRs does not exist; municipal regulation remains local and varied.
  • Bottom line for investors: Do not assume any residential zoning in Wilkes-Barre permits whole-home short-term rentals. Confirm the zoning classification and any local STR regulations for your specific property before purchasing or listing.

How to Start a Short-Term Rental Business in Wilkes-Barre

  1. Property Due Diligence

    • Confirm the zoning designation with the City of Wilkes-Barre Planning/Zoning Department. Determine whether your intended use (homestay, entire home, or multi-unit) is permitted, requires a conditional use, or is prohibited in that district.
    • Review neighborhood covenants, HOA, or planned community documents if applicable. Even where zoning allows STRs, community declarations and bylaws may restrict or ban short-term rentals.
    • For purchased properties, conduct a title search and obtain a written zoning compliance opinion from counsel. Title searches do not identify land-use restrictions.

  2. Use Classification and Compliance Path

    • Homestay (owner present; primary residence): Often the most permissible form in many PA municipalities. Still requires compliance with safety, tax, and recordkeeping rules.
    • Entire-home STR in residential zones: Likely prohibited or strictly limited; many jurisdictions require relocation to commercial or mixed-use zones.
    • Vacation rental or multi-unit commercial operation: Expect formal licensing, inspections, insurance minimums, and ongoing compliance.

  3. Operational Readiness

    • Safety and inspections: If required locally, complete any municipal or county inspections (electrical, fire, health, etc.). Maintain smoke and carbon monoxide detectors; ensure egress and safety equipment.
    • Insurance: Secure short-term rental-specific liability coverage (rider to homeowner’s policy or stand-alone). Homeowner’s policies typically exclude home-based business risks and commercial lodging exposure.
    • Taxes and registrations: Register for Pennsylvania sales/use and hotel occupancy tax (if remitting directly rather than via a booking agent), comply with state recordkeeping, and prepare to collect/remit county hotel taxes.

  4. Listing and Operations

    • Use a reputable booking platform (Airbnb, VRBO). Ensure guest screening, house rules, and emergency procedures are documented and communicated.
    • Maintain detailed records of rentals for at least two years (guest names, contact info, check-in/out dates, all occupants). Keep a 24/7 contact for emergencies.
    • Comply with the Lodging and Housing Code (Title 48, Chapter 13) for lodging establishments (occupancy < 30 days).

What do Airbnb hosts actually earn in Wilkes Barre?

Wilkes Barre hosts earn a median $20,171/year with $115 ADR and 59% occupancy.

Top performers pull in $26,695+ per year.

See the full Wilkes Barre market breakdown →

Required Documents, Permits, Licenses, and Guidelines

  • State-Level (Pennsylvania)
    • Sales, Use, and Hotel Occupancy Tax license (if not using a booking agent that collects/remits for you). Registration via the Pennsylvania Department of Revenue.
    • Compliance with 48 Pa.C.S. § 1311 (Lodging and Housing Code) for lodging establishments and transient occupancy.
    • If operating as a business, register with the PA Department of State (business entity formation and fictitious name, if applicable).
    • Insurance adequate to cover guest injuries, property damage, and commercial lodging liability. Consider riders/stand-alone policies; recognize homeowner’s policy exclusions.
    • Income tax compliance: PA personal income tax applies to STR income (net business income at 3.07%). Federal rules may require Schedule E reporting depending on days rented and personal use.
  • County-Level (Lackawanna County)
    • Local hotel occupancy taxes apply (see Specific Regulations section). Payment to the county tax collection authority unless collected via a booking agent.
  • Municipal-Level (City of Wilkes-Barre)
    • Zoning compliance confirmation for the property address.
    • Permits/licensing may be required for STRs if the municipality has adopted an STR ordinance (varies). Contact Wilkes-Barre City Hall/Planning & Zoning for current requirements.
    • If inspections are mandated locally, obtain required inspections and maintain certificates.
    • Additional municipal filings could include: business privilege/merchant licenses, rental property registrations, and sign/parking standards (if any).

Note: Municipalities may also require STRs to be entered into a municipal registry, cap the number of STRs, limit length of stay, set occupancy limits, require safety measures, and enforce nuisance/recordkeeping standards.

Specific Regulations for Short-Term Rentals

Pennsylvania State-Level

  • Lodging and Housing Code (Title 48, Chapter 13)
    • Definition of “lodging establishment” covers short-term rentals and transient occupancy.
    • Applies recordkeeping, order, and safety requirements commonly associated with hotels.
  • Hotel Occupancy Tax
    • State rate: 6%; booking agents are required to collect and remit; individuals who do not exclusively use a booking agent must register and remit directly to PA Department of Revenue.
  • Municipal Ordinances and Zoning
    • Under the Pennsylvania Municipalities Planning Code, municipalities control land use via zoning. STRs are typically permitted only if explicitly allowed; otherwise, transient use is prohibited in residential districts under the “single housekeeping unit” standard recognized in Slice of Life (2019).
    • Municipalities may define categories (e.g., homestay, vacation rental, corporate host), set caps, require permits/inspections, and restrict STRs to non-residential zones.
  • Federal Income Tax
    • STR income is reportable; federal treatment depends on days rented and personal use (Publication 527).
  • State Income Tax
    • STR income taxed as net income from business at 3.07%; expenses offset gross rents.

County-Level (Lackawanna County)

  • Third-class counties with a “second class A city” (Scranton) may impose up to 7% county hotel tax. Lackawanna County’s effective hotel tax rate is 7% (per state staff study).
  • Local hotel taxes are in addition to the 6% state tax; total state + local often reaches ~13%.

City-Level (Wilkes-Barre)

  • As of this guide’s date, no Wilkes-Barre-specific STR ordinance is cited in the provided source documents. Wilkes-Barre is a third-class city and exercises zoning authority via the Municipalities Planning Code.
  • In practice, many third-class cities regulate STRs through zoning: restricting whole-home rentals in residential districts and allowing lodging uses in commercial/mixed-use areas. Contact the City of Wilkes-Barre for current rules, permits, inspections, and any rental registration requirements.
  • Note: Local policy can change rapidly; verify directly with the city before acquisition or listing.

Compliance Burden by Operator Type (Policy Framework Not Law)

  • Homestay (owner present; primary residence): Minimal regulation (permit, proof of inspection, basic liability insurance).
  • Vacation rental (small commercial host; <10 properties): Licensing, inspections, insurance, designated person in charge, nuisance provisions.
  • Corporate host (≥10 properties): Subject to hotel-equivalent regulations (construction/renovation standards, full hotel rules), likely requiring commercial zoning.

Contact Information

  • Pennsylvania Department of Revenue (Sales, Use, and Hotel Occupancy Tax)
  • Pennsylvania Insurance Department (Homeowners and STR Insurance Guidance)
  • City of Wilkes-Barre (Planning/Zoning and Permits)
    • Address: City Hall, Wilkes-Barre, PA
    • Phone: Not provided in sources
    • Website: Not provided in sources
    • Notes: Verify zoning district, any STR permit/licensing requirements, inspections, and rental property registration.
  • Lackawanna County (Hotel Tax Administration)
    • Address/Phone: Not provided in sources
    • Website: Not provided in sources
    • Notes: Confirm local hotel tax collection procedures and applicable rates (effective rate 7%).
  • Legal Counsel (Regional Real Estate and STR Guidance)
    • Mazzoni Valvano Szewczyk & Karam
      • Address: 321 Biden Street, Suite 201 Bank Towers, Scranton, PA 18503
      • Phone: (570) 348-0776
      • Website: www.mvsklaw.com/contact/
      • Notes: For zoning and acquisition diligence, title issues, and STR compliance strategy.

Links to Source Pages

Practical Notes for STR Investors in Wilkes-Barre

  • Assume that residential zoning does not permit whole-home STRs unless the City of Wilkes-Barre expressly allows it. Confirm before purchase.
  • If your model is a homestay (owner-occupied), you still must comply with state lodging and tax rules, maintain records, and consider insurance adjustments.
  • If your model is commercial (multiple units or non-primary residences), budget for licensing, inspections, county/state taxes, and hotel-equivalent compliance.
  • Track municipal policy closely. Even where STRs are permitted, many municipalities are adding caps, occupancy limits, and safety inspections to manage neighborhood impacts.

This guide synthesizes the provided sources and reflects Pennsylvania law and practice as of early 2025. Because local rules change, investors should verify current requirements directly with the City of Wilkes-Barre and the relevant county and state agencies before committing capital.

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Wilkes Barre

Market Saturation Score

036912
High Saturation
10/ 12
months with declining YoY revenue
8–10 declining months: high saturation - supply likely outpacing demand.
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Photos of Wilkes Barre

Overview of Wilkes Barre

Wilkes-Barre ( WILKS-bair or -⁠bair-ee) is a city in and the county seat of Luzerne County, Pennsylvania, United States. Located at the center of the Wyoming Valley in Northeastern Pennsylvania, it had a population of 44,328 in the 2020 census. It is the second-largest city, after Scranton, in the Scranton–Wilkes-Barre–Hazleton, PA Metropolitan Statistical Area, which had a population of 567,559 as of the 2020 census, making it the fifth-largest metropolitan area in Pennsylvania after the Delaware Valley, Greater Pittsburgh, the Lehigh Valley, and Greater Harrisburg.The contiguous network of five cities and more than 40 boroughs all built in a straight line in Northeastern Pennsylvania's urban core act culturally and logistically as one continuous city, so while the city of Wilkes-Barre itself is a mid-sized city, the larger Scranton/Wilkes-Barre Urban Area contains half a million residents in roughly 300 square miles (780 km2). Scranton/Wilkes-Barre is the cultural and economic center of a region called Northeastern Pennsylvania, which is home to over 1.3 million residents. Wilkes-Barre and the surrounding Wyoming Valley are framed by the Pocono Mountains to the east, the Endless Mountains to the north and west, and the Lehigh Valley to the south. The Susquehanna River flows through the center of the valley and defines the northwestern border of the city. Wilkes-Barre was founded in 1769, incorporated as a borough in 1806, and formally re-incorporated as a city in 1869. The city grew rapidly in the 19th century after the discovery of nearby coal reserves and the arrival of hundreds of thousands of immigrants, who provided a labor force for the city's mines. The mining of high-quality anthracite coal fueled industrialization in the city, which reached the height of its prosperity in the first half of the 20th century. Its population peaked at more than 86,000 in 1930. Following World War II, the city's economy declined due to the collapse of industry. The Knox Mine disaster accelerated this trend after large portions of the area's coal mines were flooded and could not be reopened. In the 21st century, the city's population is roughly half that of its peak population of the 1930s, though it remains the largest city in Luzerne County and the 13th-largest city in Pennsylvania. Wilkes-Barre is located approximately 63 miles (101 km) northwest of Allentown, and 113 miles (182 km) northwest of Philadelphia.

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