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Lebanon, Pennsylvania

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Lebanon

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Lebanon, PA

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STR Regulations for Lebanon, Pennsylvania

Overview: Are short-term rentals allowed in Lebanon, PA?

  • Explicit answer: Yes—Short-Term Rental of a Dwelling is allowed by right in Lebanon across all zoning districts (Articles 1303/1304 and Section 1306.03).
  • The City’s Zoning Ordinance governs where and how STRs can operate and includes dimensional, operational, and accessory use standards.
  • Summary of key implications for investors:
    • STR is a permitted accessory use to dwellings in all districts (RMD, RMLD, RLD, RHD, plus all non‑residential districts—OI, CBD, CN, CG, LIC, GIC).
    • STR must comply with the ordinance’s dimensional requirements for the underlying district (lot coverage, setbacks, height) and with accessory use provisions in Section 1306.03.
    • General accessory use standards apply (e.g., home occupations and STRs must remain customary and incidental to the principal residential use).
    • No special exception or zoning hearing is required for an STR; approvals typically involve zoning clearance and any other required municipal permits or licenses.
    • If you will operate a Bed and Breakfast Inn (a distinct, separate use), the STR-specific rules do not necessarily apply; Bed and Breakfast is a separate use with its own occupancy, parking, and signage limits in Section 1306.02(11).

How to start a short‑term rental business in Lebanon, PA

  • Confirm zoning eligibility and permitted status:
    • STR is permitted by right in all districts (see Table 1 below). Confirm your lot’s zoning with the Zoning Officer and review the district’s dimensional standards (Article 1305).
  • Verify additional requirements:
    • For STRs, Section 1306.03 applies; obtain the specific text (known title: Short-Term Rental of a Dwelling). Contact the City Zoning Officer for the most current version.
    • If operating a Bed and Breakfast Inn instead, use Section 1306.02(11) (distinct occupancy/parking/signage rules).
  • Prepare to apply for required approvals:
    • Zoning Permit/Clearance: File for zoning approval as an accessory use to a dwelling.
    • Business Privilege License: Because STRs typically involve transient stays and compensation, they are likely subject to the City’s Business Privilege License (Code 151). Confirm the requirement and current fees with the City.
    • Building/Construction Permits: Any structural or life-safety alterations, exits, or fire-resistive work may require permits through the Construction Official.
    • Health/Fire/Safety: Comply with applicable health and fire code standards for transient occupancy.
  • Design and operational compliance:
    • Off-street parking, signage, and neighborhood compatibility must follow the accessory use and district standards (Articles 1306, 1311, 1312).
  • Launch and compliance monitoring:
    • Maintain documents (zoning permit, business license, and any health/fire documentation) on-site and/or readily available for inspections.
    • Monitor any updates to Section 1306.03 and local licensing requirements.

Required documents, permits, licenses, and guidelines

  • Zoning Permit/Clearance for “Short-Term Rental of a Dwelling”:
    • Purpose: Confirm STR as a permitted accessory use on your lot.
    • Where: City Zoning Officer (see Contacts).
  • Business Privilege License (Code 151):
    • Purpose: License for transient retail/business activity (applies to transient lodging/compensation-based STR).
    • Where: City of Lebanon Finance/Tax Office (see Contacts).
  • Building/Construction Permits:
    • Purpose: Life safety, egress, structural changes, fire separations, or other code-related work.
    • Where: City Construction Official (see Contacts).
  • Health and Fire Safety Compliance:
    • Purpose: Ensure safety of transient occupants; comply with applicable health and fire codes.
    • Where: Contact the Building/Zoning Office for guidance on local requirements and the Health Department as needed.
  • Additional operational guidelines (obtain from the Zoning Ordinance and Section 1306.03):
    • STR-specific requirements (Section 1306.03)—title confirmed; full criteria not included in provided text—likely include owner occupancy, registration, maximum stays, and occupancy limits.
    • General accessory use provisions (Section 1306.03) and specific STR standards (full text unavailable).
    • Bed and Breakfast Inn rules (Section 1306.02(11)) are separate and more restrictive (e.g., maximum 5 rental units in residential districts; one off‑street parking space per unit; single illuminated sign, max 6 sq. ft. per side and 8 ft. height; no separate cooking in guest rooms; guests limited to 30 days total in any 90‑day period; residential or historical appearance; managed by permanent residents).

Specific regulations for STRs in Lebanon, PA (city), Lebanon County, and Pennsylvania

  • City of Lebanon STR zoning status:
    • Permitted: “Short-Term Rental of a Dwelling” is permitted by right in all zoning districts as an accessory use to a lawful dwelling (Articles 1303/1304).
    • Accessory status: Must remain customary and incidental to the principal residential use and meet all zoning requirements.
    • Dimensional requirements: Must meet the dimensional standards (lot coverage, setbacks, height) of the underlying district (Article 1305).
    • Accessory use standards and STR-specific provisions: Section 1306.03 governs STRs (specific text not provided). Contact the Zoning Officer for the current requirements.
    • Bed and Breakfast Inn: This is a separate, distinct use with specific occupancy, parking, and signage limits (Section 1306.02(11)). If you intend to operate more units than allowed under STR rules or want full commercial lodging operations, compare with Bed and Breakfast criteria.
  • Additional city regulations to consider:
    • Off-street parking standards (Article 1311).
    • Sign regulations (Article 1312).
    • Buffer/screening requirements for certain accessory uses (Section 1313).
  • Lebanon County:
    • No county-level short-term rental registration or licensing ordinance was provided. County health or conservation permits may be relevant for specific sites (e.g., floodplain, erosion control). Consult the Zoning Officer to determine whether any county approvals are needed for your property.
  • Pennsylvania State:
    • No statewide short-term rental registration or licensing scheme was included. State-level requirements (e.g., health, fire, or building codes) may apply depending on the property and scope of operation. Coordinate any state requirements with your permits.

Table 1. STR Allowed by Zoning District

  • Permitted STR Status: P = Permitted by right (no zoning hearing required)
    • RLD (Low Density Residential), RMLD (Medium Low Density Residential), RMD (Medium Density Residential), RHD (High Density Residential): P
    • OI (Office/Institutional), CBD (Central Business), CN (Neighborhood Commercial), CG (General Commercial), LIC (Light Industrial/Commercial), GIC (General Industrial/Commercial): P

Local contacts (City of Lebanon, PA)

  • Zoning Officer and Planning/Zoning
    • Phone: 717-228-4480
    • Address: City Hall, 400 S. 8th St., Lebanon, PA 17042
    • Email/Website: Not listed in provided materials. Visit the City’s official website for current contact information.
  • City Clerk/City Hall (general municipal contact)
    • Phone: 717-228-4480
    • Address: City Hall, 400 S. 8th St., Lebanon, PA 17042
    • Website: Not listed in provided materials.
  • Construction Official (building permits, code compliance)
    • Contact via City Hall or the Building/Zoning Department; confirm current contact details.
  • Finance/Tax Office (Business Privilege License)
    • Phone: 717-228-4480
    • Address: City Hall, 400 S. 8th St., Lebanon, PA 17042
    • Website: Not listed in provided materials.

Links to source pages

  • City of Lebanon Zoning Ordinance (as adopted June 22, 2020)
    • www.lebanonpa.org/getattachment/c34e9b2f-05b6-4969-bda8-2d38b20829d9/zoning-ORDINANCE.pdf
    • Notes:
      • STR permitted by right: Articles 1303 and 1304, and Section 1306.03 (title listed; specific criteria not included in provided text).
      • STR vs. Bed and Breakfast: Bed and Breakfast is a separate, distinct use with specific standards (Section 1306.02(11)).
      • Dimensional requirements: Article 1305.
      • Parking and signage: Articles 1311 and 1312.
      • Business Privilege License requirement referenced in Title XV (licensing), Chapter 151; confirm application/fees directly with the City.

Important cautions and practical guidance for STR investors

  • Obtain Section 1306.03 text: The specific requirements for “Short-Term Rental of a Dwelling” are referenced but not provided. Contact the Zoning Officer to secure the current Section 1306.03 language before investing or listing your property.
  • Verify licensing scope: Because STRs involve transient stays for compensation, the City’s Business Privilege License likely applies. Confirm the current process, fee, and any renewals with the Finance/Tax Office.
  • Distinguish STR vs. Bed and Breakfast: These are separate uses under the ordinance. Bed and Breakfast has defined occupancy and operational limits (Section 1306.02(11)), while general STR uses are governed by Section 1306.03. Choose the correct pathway based on your business model.
  • Check parking and signage: If operating from a residential neighborhood, ensure off-street parking and any exterior signage comply with Articles 1311 and 1312.
  • Coordinate building and fire safety: Engage early with the Construction Official for any construction or life-safety work.
  • Maintain compliance: Keep permits/licenses on-site or readily available; monitor ordinance updates and re-approvals as needed.

If no city‑specific STR ordinance existed, Pennsylvania does not have a statewide STR registration or licensing program, and Lebanon County has no county‑level STR ordinance included in the provided materials. For properties within the City, you must still follow all applicable City zoning, building, fire, and any licensing requirements.

What do Airbnb hosts actually earn in Lebanon?

Lebanon hosts earn a median $37,820/year with $192 ADR and 62% occupancy.

Top performers pull in $55,832+ per year.

See the full Lebanon market breakdown

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Lebanon

Market Saturation Score

036912
Mild Saturation
4/ 12
months with declining YoY revenue
2–4 declining months: early saturation pressure - watch for trend persistence.
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Photos of Lebanon

Overview of Lebanon

Lebanon is a small city of approximately 26,000 residents and the seat of Lebanon County, set in the rolling farmland of south-central Pennsylvania. Long associated with the Pennsylvania Dutch heritage of the surrounding region, it is best known as a center for Lebanon bologna, a sweet-and-tangy smoked meat developed by German-speaking settlers in the nineteenth century. The city sits about thirty miles east of Harrisburg, the state capital and the nearest major city, with Philadelphia roughly ninety miles to the east and Baltimore a similar distance to the south.

Just to the northwest of Lebanon lies Hershey, roughly fifteen miles up US-422, home to Hersheypark, a sprawling amusement park complex with roller coasters, a zoo, and an adjacent water park, along with Hershey's Chocolate World and the Hershey Gardens. The town draws millions of visitors each year and gives Lebanon a practical, affordable base for travelers who want to experience the resort without paying resort prices.

A short drive south of the city, the historic Victorian community of Mount Gretna sits tucked within the woods of Lebanon County. The borough, founded in the late 1800s as a Methodist camp-meeting retreat, retains its original character with shaded walking paths, the Mount Gretna Playhouse summer theater, and the Jigger Shop ice cream parlor. Each summer the surrounding forest hosts the Mount Gretna Firefly Festival, when thousands of synchronous fireflies draw visitors for a short, magical window in late June.

About seven miles south of downtown Lebanon, the Cornwall Iron Furnace stands as one of the best-preserved colonial-era iron furnaces in the country and a National Historic Landmark. Operated intermittently from 1740 until 1883, the site offers tours of the stack, the casting house, and the museum exhibits that trace the region's industrial heritage. The surrounding Cornwall area also features walking trails along the former iron-ore pits, now filled with water.

For outdoor recreation closer to the city, the Lebanon Valley Rails-to-Trails system offers miles of paved and crushed-stone paths that radiate out from Lebanon, connecting small towns across the county. Cyclists and walkers can travel for hours through the gentle farmland of the Lebanon Valley, with trailheads and parking areas available in several nearby communities.

Lebanon offers short-term-rental owners a compelling combination of small-city convenience, a distinctive regional food culture, and proximity to some of Pennsylvania's most-visited destinations. Hersheypark, Lancaster County's Amish country, and the state capital are all within a short drive, while the surrounding countryside, the historic iron furnace, and Mount Gretna provide year-round appeal for visitors who prefer quieter pursuits.

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