New Holland, Pennsylvania Short Term Rental Regulations Guide for Airbnb hosts

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

Short-term rentals are significantly restricted in New Holland, PA. According to the Borough of New Holland Zoning Ordinance, short-term rentals are expressly and specifically prohibited in all zoning districts except the C-2 Commercial District. Only commercial properties along major thoroughfares in the C-2 district may host tourist establishments, rooming houses, boarding houses, or bed and breakfast establishments for not more than eight persons.

This represents a highly restrictive regulatory environment that severely limits opportunities for STR investment within New Holland's residential areas, making the borough largely prohibitive for typical STR operations.

What do Airbnb hosts actually earn in New Holland?

New Holland hosts earn a median $30,708/year with $179 ADR and 55% occupancy.

Top performers pull in $49,525+ per year.

See the full New Holland market breakdown

How to Start a Short-Term Rental Business in New Holland

Given New Holland's restrictive zoning, the pathway to legal STR operation is extremely limited:

Option 1: C-2 Commercial District (Highly Restricted)

Acquire property within the C-2 Commercial District along major thoroughfares
Property must accommodate no more than eight persons
Must qualify as tourist, rooming, boarding, or bed and breakfast establishment
Must comply with all commercial zoning requirements
This option is extremely limited and likely not viable for most STR investors

Option 2: Alternative Market Strategies

Consider neighboring Lancaster County municipalities with more permissive STR policies
Evaluate properties in Lancaster City, where STRs are more comprehensively regulated but permitted
Research other Lancaster County boroughs and townships with varying STR regulations

Required Documents, Permits, Licenses, and Guidelines

New Holland C-2 District Requirements (if applicable):

Zoning permit for commercial use
Building permits as required
Business license from the borough
Fire safety compliance
Health department approvals (if applicable)
Insurance coverage meeting borough requirements

State-Level Pennsylvania Requirements (for permitted locations):

Business Registration:

Pennsylvania Sales, Use, and Hotel Occupancy Tax License (if collecting taxes directly)
Registration with Pennsylvania Department of Revenue
Business privilege license (municipality-specific)

Tax Compliance:

Pennsylvania Hotel Occupancy Tax (6% state rate)
Lancaster County hotel tax (additional local rate)
Federal income tax reporting
Pennsylvania personal income tax (3.07%)

Insurance Requirements:

General liability coverage (minimums vary by municipality)
Property insurance
Commercial STR insurance (recommended)

Specific Regulations for Short-Term Rentals

New Holland Borough Regulations (Zoning Ordinance Section 701):

Prohibited Uses:

Short-term rentals explicitly banned in all residential districts
No STR operations permitted in R-1, R-2, R-3, or other residential zoning classifications
Properties must comply with traditional residential occupancy definitions

C-2 Commercial District Exception:

Limited to eight persons maximum
Must qualify as tourist, rooming, boarding, or bed and breakfast establishment
Subject to all commercial development standards
Must maintain commercial character of district

Lancaster County Context:

Lancaster County consists of 60 municipalities with varying STR regulations. Examples include:

Permissive municipalities: Lancaster City, some townships and boroughs
Restrictive municipalities: Strasburg (complete ban), other communities with significant restrictions

Pennsylvania State-Level Framework:

Tax Obligations:

State hotel occupancy tax: 6%
Lancaster County hotel tax: Up to 5% (depending on specific municipality)
Total effective tax rate: 11-13% for guests

Safety and Building Requirements:

Smoke detector and carbon monoxide detector installations
Fire safety compliance
Building code compliance
Health department oversight (where applicable)

Municipal Ordinances and Zoning Framework

Pennsylvania's STR regulation operates under the Pennsylvania Municipalities Planning Code, which delegates zoning authority to local municipalities. New Holland has exercised this authority to implement one of the most restrictive STR policies in Lancaster County.

Key Legal Precedents:

Slice of Life v. Hamilton Township (2019): Established that purely transient use of residential properties can be prohibited
Monroe County Court decisions: Reinforced municipal authority to regulate or ban STRs in residential areas

Contact Information

New Holland Borough Government

Address: Borough of New Holland, Pennsylvania Phone: (717) 354-8383 Website: newhollandborough.org

Key Departments:

Borough Secretary: Primary contact for business licenses and permits
Zoning Officer: Zoning compliance and C-2 district inquiries
Building Inspector: Construction and safety permit requirements

Lancaster County Contacts

Lancaster County Planning Department Address: 150 North Queen Street, Suite 320, Lancaster, PA 17603 Phone: (717) 299-8333 Website: lancovacountypa.gov

Lancaster County Tax Collection Phone: (717) 299-8211 For hotel tax remittance and compliance

Pennsylvania State Contacts

Pennsylvania Department of Revenue Hotel Occupancy Tax Division Address: Bureau of Audits, 280 Finance Building, Harrisburg, PA 17120 Phone: (717) 787-6454 Website: pa.gov/agencies/revenue/

Local Government Commission Address: Room 108 Finance Building, Harrisburg, PA 17120 Phone: (717) 787-4397 Website: jsq.legis.state.pa.us

Links to Source Pages

New Holland Zoning Ordinance: newhollandborough.org/wp-content/uploads/2019/03/Zoning-Ordinance-Final-1.pdf

Pennsylvania Joint State Government Commission STR Report: jsg.legis.state.pa.us/resources/documents/ftp/publications/2025-03-17%20Short-term%20Rental%20Web%203.17.25.pdf

Pennsylvania Department of Revenue - Home Sharing: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-use-and-hotel-occupancy-tax/home-sharing.html

Lancaster County STR Resources: www.bnbcalc.com/blog/short-term-rental-regulation/lancaster-county-pennsylvania-guide

Lancaster Online STR Coverage: lancasteronline.com/news/local/here-are-the-rules-proposed-in-place-for-short-term-rentals-in-different-lancaster-county/collection_08dcb84a-f042-11ed-82f3-63e037ad48d2.html

Investment Recommendation: Given New Holland's extremely restrictive STR environment, investors should focus on neighboring Lancaster County municipalities with more permissive regulatory frameworks. The borough's near-complete ban on STRs in residential areas makes it unsuitable for typical STR investment strategies.

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Ask the AI Advisor about New Holland

New Holland is a small borough in Lancaster County, Pennsylvania, home to roughly 5,500 residents. Tucked into the rolling farmland of southeastern Pennsylvania, it carries the quiet, agricultural character typical of Pennsylvania Dutch Country, an area famous for its Amish and Mennonite communities, traditional crafts, and pastoral landscapes. New Holland is best known as a convenient gateway to Lancaster County's scenic countryside and its many heritage attractions, and it sits about 60 miles west of Philadelphia and roughly 15 to 20 minutes northeast of Lancaster city.

A short drive west of New Holland brings visitors to Kitchen Kettle Village, a well-known shopping and dining complex in the village of Intercourse. The village offers more than forty small shops where local merchants sell jams, baked goods, and handcrafted items, giving travelers a chance to experience the slower pace of life that defines this part of the state. From New Holland, the trip is about 10 minutes by car.

About 20 minutes southwest of town, the historic village of Strasburg anchors one of the region's most popular family-friendly clusters of attractions. The Strasburg Rail Road is a long-running heritage railroad offering scenic train rides through the surrounding farmland in restored wooden coaches. The area is rounded out by the Railroad Museum of Pennsylvania, the National Toy Train Museum, and the Sight & Sound Theatres, making it easy to fill a full day.

The countryside surrounding New Holland is itself one of the area's primary draws. The patchwork of family farms, horse-drawn buggies, covered bridges, and roadside produce stands that spreads across Lancaster County draws visitors year-round who come to experience a glimpse of a centuries-old rural way of life. Driving tours along the back roads reveal working farms, quilt shops, and bakeries that have served the local Amish and Mennonite communities for generations. Lancaster city, the county seat, adds a complementary urban layer with its 19th-century Central Market and a revitalized downtown of restaurants, galleries, and independent shops.

New Holland is a compelling base for short-term rentals because it offers visitors a quieter, more affordable alternative to staying in Lancaster city while keeping the county's marquee attractions within easy reach. Its central location, small-town atmosphere, and proximity to the cultural and scenic highlights of Pennsylvania Dutch Country make it an appealing option for travelers seeking an authentic Lancaster County experience.