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

Yes, short-term rentals are explicitly allowed in State College, PA, but only under strict regulatory conditions. The Borough of State College established a comprehensive licensing framework in August 2022 through Ordinance 2187, which was subsequently amended in November 2023 by Ordinances 2210 and 2211. Short-term rentals are permitted for stays of less than 30 days, but only for primary residences where the property owner or tenant resides for at least eight months of the year. This licensing requirement applies specifically to properties within the Borough of State College and is designed to preserve the residential character of neighborhoods while addressing nuisance concerns.

How to Start a Short-Term Rental Business in State College

Step 1: Determine Eligibility

Before proceeding with any applications, verify that your property meets the fundamental eligibility criteria:

• Primary Residence Requirement: You may only operate a short-term rental in your primary residence, defined as a dwelling where you live for eight months out of the year
• Property Type: One- and two-family dwellings are regulated by the Standard Occupancy rule, while multi-family structures and other property types fall under the Centre Region Rental Housing and Building Safety Code
• Off-Street Parking: You must provide off-street parking for guests
• Landlord Approval: If you're a tenant renting the property, you must provide proof of landlord/owner approval

Step 2: Understand the Dual Permit System

State College operates a dual permit system for short-term rentals:

1. Short-Term Rental License (issued by State College Borough Planning Department)
2. Rental Housing Permit (issued by Centre Region Code Administration - CRCA)

The Rental Housing Permit is now required as part of the Short-Term Rental License application process following the adoption of Ordinance 2211.

Step 3: Submit Applications

The Borough is currently transitioning to a new license management system through Deckard Technologies. During this transition:

• Existing Active License Holders: Your approved licenses remain active
• Renewal Applications: Currently paused, but existing licenses remain valid until the new system is operational
• Pending Applications: Being processed manually by Planning Department staff
• New Applicants: Should follow the temporary application process outlined on the Borough's Application Process page

Step 4: Include License Number in Listings

After receiving your license, you must add your registration number to any online listings to finalize registration with the city.

Required Documents, Permits, Licenses, and Guidelines

Required Permits and Licenses

Short-Term Rental License (Primary Requirement)

• Cost: $300
• Validity: One year from date of issuance
• Application Process: Through State College Borough Planning Department
• Website: https://www.statecollegepa.us/762/Short-Term-Rental-License

Rental Housing Permit (Required for All Rental Activity)

• Issuer: Centre Region Code Administration (CRCA)
• Required For: All rental activity, including short-term rentals
• Application: Through State College Borough's rental housing permit page
• Review Process: Zoning compliance review by Borough, issuance and maintenance by CRCA

Required Documentation

The application process requires several key documents:

• Person in Charge (PIC) Information: Name, address, phone number, and email of the PIC who must be located within 25 miles of the property
• Primary Residence Certification: Documentation certifying that the property is the principal residence of either the owner or a tenant
• Proof of Homestead Exemption (if applicable)
• Proof of Landlord/Owner Approval (if tenant applicant)
• Off-Street Parking Verification

Application Process

• Submission Methods: Mail-in or in-person drop-off
• Processing: Currently transitioning to new Deckard Technologies system
• Contact for Status: shorttermrentals@statecollegepa.us

Specific Regulations for Short-Term Rentals

Host Eligibility and Property Requirements

• Primary Residence Only: Properties must serve as the primary residence of the owner or tenant for minimum eight months annually
• Host Presence: Hosts are not required to be present during reservations
• Off-Street Parking: Mandatory provision of off-street parking for guests
• Person in Charge: Must designate a PIC within 25 miles of the property

Operational Limitations

• Primary Residence Period: Must live in home eight months out of the year
• Maximum Rental Days: May list home as entire home rental for remaining four months or 120 days per year
• Standard Occupancy Limits: Governed by the Standard Occupancy rule for one- and two-family dwellings in R districts

Standard Occupancy Regulations

For one- and two-family dwellings in all R districts, maximum occupancy is limited to:

• Option A: One family plus two unrelated people
• Option B: Three unrelated people total
• Applicability: Applies to properties with Student Home License, one-family dwellings with accessory apartment, and both units in two-family dwellings
• Accessory Apartment Limitation: No more than 2 people total may reside in the accessory apartment, with the standard occupancy total spread across the entire structure

Multi-Family and Non-R District Properties

Properties regulated by the Centre Region Rental Housing and Building Safety Code include:

• Multi-family structures (3+ units)
• Townhomes and condos
• Fraternities and sororities
• One- and two-family dwellings in non-R districts
• Maximum occupancy determined by bedroom size, common areas, egress, and life safety requirements

Tax Obligations

Hosts must collect and remit:

• Pennsylvania State Hotel Tax: 6%
• Centre County Hotel Tax: 5%

Enforcement and Penalties

• First Offense: Warning for failure to register within 30 days of offering property for short-term rental
• Second Offense: Fine between $100 and $300 if violation occurs 14+ days after initial warning
• Continuing Violations: Each day constitutes a separate offense until addressed

Exemptions

• Hotels and motels are exempt from STR licensing requirements
• Long-term stay listings (30+ days) do not require short-term rental licensing

Contact Information for Local Authority

Primary Contact

Email: shorttermrentals@statecollegepa.us Purpose: All communication regarding short-term rentals

Centre Region Code Administration (CRCA)

Website: https://www.crcog.net/crca Purpose: Rental Housing Permit questions, occupancy determinations for non-standard properties

State College Borough Planning Department

Website: https://www.statecollegepa.us/160/Planning-Zoning Responsibility: Short-Term Rental License applications and renewals

Links to Source Pages

• State College Short-Term Rental License: https://www.statecollegepa.us/762/Short-Term-Rental-License
• Application Process: https://www.statecollegepa.us/845/Application-Process
• License Renewals: https://www.statecollegepa.us/846/License-Renewals
• Rental Housing Permit Information: https://www.statecollegepa.us/333/Rental-Housing-Permit
• Ordinance 2210 (Short-Term Rental Rules): https://ecode360.com/38117504
• State College Rental Housing Overview: https://www.statecollegepa.us/840/Rental-Housing
• Centre Region Code Administration: https://www.crcog.net/crca
• Standard Occupancy Rule: https://ecode360.com/32910237
• Centre Region Rental Housing and Building Safety Code: https://www.crcog.net/index.asp?SEC=DD7535A7-0EC2-4917-B2CD-BF392A2A8C09
• Centre County Hotel Room Tax Information: https://centrecountypa.gov/768/Centre-County-Hotel-Room-Tax-Information
• Airbnb's State College STR Guide: https://www.airbnb.com/help/article/3342
• Student Home Registry: https://www.arcgis.com/apps/dashboards/805896ebfa6e40569723c100e26f331f

This comprehensive guide provides all necessary information for investors considering short-term rental operations in State College, PA. The regulatory environment is structured but manageable, requiring careful attention to primary residence requirements, occupancy limits, and the dual permit system. The current transition to the Deckard Technologies system may affect application timing, so prospective investors should maintain regular communication with the Planning Department via email for current status updates.