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

• Explicitly: Yes. The City of Lancaster permits short-term rentals (STRs) and homestays under specific zoning, parking, safety, and operating conditions. STRs are treated as a commercial service and are allowed by right in several non-residential and mixed-use zoning districts. Homestays—owner-occupied rentals of up to two bedrooms—are permitted by right in a broader set of zones.
• Key takeaways:
  • STRs are allowed in RO, MU, CB1, CB, C1, C2 (by right), provided mandatory conditions are met.
  • Homestays are allowed in R3, R4, RO, MU, CB1, CB, C1, C2 (by right), provided mandatory conditions are met.
  • Off‑street parking is mandatory for both STRs and homestays.
  • Units must be registered as a “transient dwelling” and pass a City housing inspection.
  • Maximum continuous stay: 30 days per party.
  • STRs require a designated property manager; homestays require the owner to serve as the manager and be present.

Start Here: How to Launch a STR in Lancaster City

1. Confirm your property’s zoning

• Use the City’s interactive zoning map to determine whether your property is in an approved zone for STRs or homestays. If not in an approved zone, you will need a variance from the Zoning Hearing Board (ZHB).

2. Validate operational feasibility

• Property type: Must qualify as a single-family dwelling or apartment per City Zoning Ordinance.
• Off‑street parking: Required. For STRs, 1 space per dwelling; for 4+ bedrooms, 1 additional space per bedroom. For homestays, 1 space per 2 bedrooms dedicated to homestay (fractions ≥0.5 count as one).
• Occupancy and stay limits: Maximum 30 consecutive days per party; occupancy capped at 2 adults per bedroom.
• Signage: No exterior or interior signs visible to the public.

3. Secure approvals and licenses

• Certificate of Zoning Compliance (if your property is in an approved zone).
• Zoning Hearing Board application (if your property is not in an approved zone or cannot meet conditions).
• Residential Rental License Application specifically for a “Transient Dwelling.”
• Housing inspection by City inspectors is required prior to registration approval.

4. Designate a property manager

• STRs: Identify and provide contact information for a property manager to the City’s Housing Unit.
• Homestays: The property owner must serve as the sole manager and be residing in the dwelling during all rentals.

5. Register and maintain compliance

• Register the dwelling as a transient dwelling rental unit.
• Maintain records and ensure ongoing compliance to avoid enforcement (fines, condemnation, court action).

Required Documents, Permits, Licenses, and Guidelines

• Certificate of Zoning Compliance Application (for permitted zones)
  • Purpose: Confirms the unit’s use complies with zoning requirements for STRs/homestays.
• Zoning Hearing Board Application (if a variance is needed)
  • Purpose: Requests relief from zoning requirements when the property is not in an approved zone or cannot meet conditions.
• Residential Rental License Application
  • Purpose: City-issued rental license; ensure you select “Transient Dwelling” when completing the application.
• Housing inspection
  • Purpose: City Housing Inspector conducts an inspection prior to registration approval to confirm safety and habitability standards.
• Parking compliance
  • STRs: 1 off‑street space per dwelling; 1 additional space per bedroom for 4+ bedrooms.
  • Homestays: 1 off‑street space per 2 dedicated homestay bedrooms (fractions ≥0.5 = 1 space).
• Contact the Bureau of Property Maintenance & Housing Inspections for rental licensing (PMHI) details and inspection scheduling.

Specific Regulations: City of Lancaster (STRs vs. Homestays) Zoning allowances

• Short-Term Rentals (STRs): Permitted by right in RO, MU, CB1, CB, C1, C2.
• Homestays: Permitted by right in R3, R4, RO, MU, CB1, CB, C1, C2.

Definitions (as adopted May 10, 2022)

• STR: A fully furnished single-family dwelling rented by written contract to registered guests for less than 31 days; not occupied by an owner or manager; no services (meals or housekeeping) provided.
• Homestay: A single-family dwelling where a maximum of two bedrooms are rented by written contract on a short-term basis, with the property owner concurrently residing in the dwelling.

Mandatory conditions

• STRs

  • (a) Registration as a transient dwelling rental unit; City housing inspection required.
  • (b) Property manager must be identified and contact info provided to the City’s Housing Unit.
  • (c) Maximum stay: 30 consecutive days per registered party.
  • (d) Entire dwelling rented to one individual representing the entire group.
  • (e) Guests limited to 2 adults per bedroom.
  • (f) No exterior or interior sign intended to be seen by the public.
  • (g) Property must qualify as a single-family dwelling or apartment per Zoning Ordinance Chapter 300 Article XVII.

• Homestays

  • (a) Owner serves as the sole property manager and provides contact information.
  • (b) Owner must reside in the dwelling during the rental.
  • (c) Maximum stay: 30 consecutive days per registered party.
  • (d) Guests limited to 2 adults per bedroom.
  • (e) No exterior or interior sign intended to be seen by the public.
  • (f) Guests must have use of a bathroom and kitchen for the rental duration.
  • (g) Structures with only 2 bedrooms may only dedicate one bedroom as a homestay.

Parking standards

• STRs: Off‑street parking required. 1 space per dwelling; for 4+ bedrooms, 1 additional space per bedroom.
• Homestays: Off‑street parking required. 1 space per 2 dedicated homestay bedrooms (fractions ≥0.5 count as 1).

Noncompliance and enforcement

• Noncompliant units are subject to enforcement actions, including fines, unit condemnation, and court proceedings. The City tracks STRs and homestays using proprietary software.

Lancaster Township (County) Note

• Lancaster Township is a separate municipality from the City of Lancaster. The City’s STR/homestay rules summarized above apply only within City limits. The Township proposed an ordinance in 2022 to define and regulate STRs; check with the Township for any adopted rules and requirements.

State-Level Rules for Pennsylvania (Context for City Investors)

• No statewide STR license. Licensing and operation rules are local.
• Hotel Occupancy Tax: Pennsylvania applies a 6% Hotel Occupancy Tax on short-term lodging. If you rent directly (not through a platform that collects and remits taxes for you), you must register with the PA Department of Revenue and collect and remit this tax. Some counties add local lodging taxes; confirm the applicable rate for Lancaster County.
• Business entity: If operating through an LLC or other business, register with the Pennsylvania Department of State.
• Safety and code: Comply with state fire and building codes as implemented locally; the City requires a housing inspection for transient dwellings.
• HOA rules: In some neighborhoods, HOAs may prohibit or limit short-term rentals; review covenants before purchasing or listing.

Contact Information

• City of Lancaster – Zoning Officer
  • Name: Jameel Thrash
  • Address: 120 N. Duke St., Lancaster, PA 17602
  • Office hours: Monday–Friday, 8:30 a.m. – 5:00 p.m.
  • Phone: (717) 291-4736
  • Email: JaThrash@CityofLancasterPA.com
• City of Lancaster – Bureau of Property Maintenance & Housing Inspections (PMHI)
  • Responsible for residential rental licensing and inspections (including transient dwellings).
  • See the City’s PMHI page and Document Center for applications and inspection protocols.
• Lancaster Township (municipality separate from the City)
  • Address: 1240 Maple Avenue, Lancaster, PA 17603
  • Phone: (717) 291-1213
  • Hours: Monday–Friday, 8:00 a.m. – 4:00 p.m.
  • Note: Separate zoning and potential STR rules; verify the status of any adopted ordinance.

Source Pages and Key Documents

• City of Lancaster – Short-Term Rentals & Homestays: www.cityoflancasterpa.gov/short-term-rentals/
• City of Lancaster – Zoning Compliance Application: www.cityoflancasterpa.gov/wp-content/uploads/2021/12/ApplicationforCompliance-2021.pdf
• City of Lancaster – Zoning Hearing Board Application: www.cityoflancasterpa.gov/wp-content/uploads/2023/02/Application-for-ZHB-Appeal-2023.pdf
• City of Lancaster – Residential Rental License Application: www.cityoflancasterpa.gov/wp-content/uploads/2019/07/PMHI-Rental-License-Application-1.pdf
• City of Lancaster – FAQ on STRs & Homestays (Oct 2022): www.cityoflancasterpa.gov/wp-content/uploads/2022/06/FAQ-on-STRs-and-Homestays-10-13-22-v2.pdf
• City Zoning Ordinance (definitions): ecode360.com/27422914
• City Zoning Ordinance – STR/Homestay amendment (May 10, 2022): ecode360.com/LA1674/laws/LF1793217.pdf
• City’s interactive Zoning Map: lancaster-pa.maps.arcgis.com/apps/Viewer/index.html?appid=538346c47e9a4f22b190f3630d92ce56
• Lancaster Township – Proposed STR Ordinance (Nov 2022): www.twp.lancaster.pa.us/_T22_R28.php

Closing Advice for STR Investors

• Start with zoning: Confirm your property’s eligibility using the interactive map and definitions above.
• Plan for parking: Ensure compliant off‑street parking; it is a hard requirement.
• Budget for inspections: The transient dwelling inspection is a condition of registration approval.
• Keep records: Maintain guest logs, contracts, and tax filings to support ongoing compliance and state tax obligations.
• Monitor local policy: Municipal rules can evolve; stay current via the City’s zoning and PMHI pages and relevant ordinances.