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

• City of Allentown (Official Website): https://www.allentownpa.gov/
• City of Allentown (Planning Department): https://www.allentownpa.gov/Departments/Planning
• Pennsylvania Department of Revenue (Tax Registration): https://www.revenue.pa.gov/
• Pennsylvania Department of Revenue (Home-Sharing/STR Resources): https://www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/home-sharing.html
• Pennsylvania Insurance Department (Homeowners Insurance Basics): https://www.pa.gov/agencies/insurance/consumer-help-center/learn-about-insurance/homeowners.html
• Forbes Article on Short-Term Rental Insurance: https://www.forbes.com/advisor/homeowners-insurance/home-sharing-insurance/