State College, Pennsylvania Short Term Rental Regulations Guide for Airbnb hosts

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.

What do Airbnb hosts actually earn in State College?

State College hosts earn a median $27,399/year with $304 ADR and 36% occupancy.

Top performers pull in $43,837+ per year.

See the full State College market breakdown

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:

Short-Term Rental License (issued by State College Borough Planning Department)
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.

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Ask the AI Advisor about State College

State College, Pennsylvania sits in Centre County in the geographic center of the state, with a borough population of roughly 42,000 that swells significantly when Penn State University is in full session. The town has the unmistakable feel of a major college town, layered with a friendly small-town atmosphere and a walkable downtown filled with restaurants, coffee shops, and bookstores. It is best known as home to Penn State's flagship University Park campus and serves as a popular gateway to the ridges, gorges, and hardwood forests of central Pennsylvania. The nearest sizable city is Harrisburg, the state capital, located about 90 miles to the southeast.

Penn State University is the dominant institution and the primary reason most visitors come to State College. The campus itself functions almost like a small city, with Beaver Stadium, the HUB-Robeson Center, Old Main, and the Palmer Museum of Art drawing both prospective students and returning fans. Football weekends in particular transform the town, but the university's arboretum, performing arts centers, and the Berkey Creamery attract visitors year-round. The university lies at the heart of the borough, and most points of interest are within easy walking distance of downtown.

Just outside town, Mount Nittany is the most iconic local landmark, a long, narrow ridge that rises above the Nittany Valley and is closely tied to the identity of both the university and the region. A popular out-and-back hike on the Mount Nittany Trail leads to a series of overlooks with sweeping views of the valley below, and the trailhead is only a short drive from the center of town. Hikers, trail runners, and dog-walkers share the well-maintained path, especially in spring and fall.

Outdoor recreation fans will also find Black Moshannon State Park about 20 minutes north of State College, a roughly 3,400-acre park built around a glacial lake and surrounding bog. The park offers camping, boating, swimming, and miles of cross-country ski and hiking trails through a quiet, often-overlooked corner of the Allegheny Plateau. Closer to town, Rothrock State Forest sprawls across more than 96,000 acres to the south and east, laced with logging roads converted to hiking and mountain biking trails, including sections of the Mid State Trail that crosses the entire commonwealth.

State College blends a vibrant, year-round university culture with some of the most accessible outdoor recreation in central Pennsylvania, making it a flexible base for short-term rentals. Game days, family weekends, graduation ceremonies, and outdoor getaways each pull a different kind of visitor to the area, and the compact borough makes it easy to step from a downtown coffee shop to a quiet forest trail within the span of an afternoon. For owners and travelers alike, the town's combination of academic gravity and natural beauty gives it a steady and varied rhythm of demand throughout the year.