Short‑term rentals (STRs) continue to evolve across the U.S., and Pennsylvania is no exception. As travelers seek mountain escapes, lakeside retreats, historic towns, and proximity to major urban hubs, certain Pennsylvania markets stand out for their rental demand, pricing power, and investment potential. Below, we detail five of the top STR markets in Pennsylvania as of 2025—why they shine, what metrics support them, and what to watch out for.

How We Selected These Markets

To identify the top markets in Pennsylvania, we used several key criteria:

• Average Daily Rate (ADR) & Occupancy — how much nightly rates are and how often units are booked

• Gross Revenue Potential — how much STRs in the area are making, relative to property cost

• Regulatory Environment — permitting, zoning, licensing, local restrictions on STRs

• Tourism / Guest Appeal — natural beauty, proximity to outdoors/nature, historic appeal, events, access from large population centers

• Barriers to Entry / Cost vs Upside — purchase prices, availability, competition, saturation risk

1. Poconos (Pocono Mountains Region) — Best Nature / Vacation / Group Getaway Market

Why it stands out

The Poconos region remains one of the strongest STR zones in Pennsylvania. Its draw comes from seasonal outdoor recreation (skiing, lakes, hiking), proximity to large metropolitan areas like New York City and Philadelphia, and growing infrastructure for vacationers. It's ideal for those who can offer larger homes, cabins, or lake‑ and mountain‑view properties.

Key Metrics & Highlights

• According to our data the Poconos is highlighted for high ADRs in the region — many STRs in Pocono towns getting $250‑$400 / night, depending on quality, size, season, and amenities. 

• Occupancy rates tend to fall in the 55‑70% range annually (though heavily seasonal). 

• Some high‑end or well‑amenitized properties (hot tubs, lake access, seasonal features) generate strong RevPAR because guests are willing to pay more for “getaway” feel. 

Strengths & Opportunity

• High ADR potential: Premium amenities, views, group‑friendly layouts allow for higher rates.

• Seasonal diversity: Winter skiing, summer lake & water activities, fall foliage, hiking trails allow multiple high demand seasons (though with downtime between).

• Proximity advantage: Many potential guests can drive in a few hours from major metro areas, making weekend stays very feasible.

• Vacation‑style appeal: Cabins, rustic lodges, or charming rentals tend to outperform if well maintained and well listed.

Risks

• Large seasonality swings: Off‑peak periods (late winter after ski season, mid‑spring, late fall) may see low bookings; cash flow must be planned to cover those months.

• Maintenance & operating costs: Winter weather, snow removal, heating, seasonal wear & tear add up. Properties with outdoor features (decks, docks) need more frequent maintenance.

• Competition & saturation: Many investors targeting this area; differentiation matters (amenities, guest experience, lodging quality).

• Regulation and local ordinance risk: Some townships may introduce licensing, caps, or stricter safety/inspection requirements. Also zoning may limit short‑term rentals in certain zones.

2. Philadelphia Metro / City of Philadelphia — Best Urban & Mixed‑Use Demand

Why it stands out

Philadelphia remains one of the top Pennsylvania STR markets by volume, diversity of visitors (tourists, business travel, conventions, academia), historic attractions, museums, culture, and proximity to other Northeast cities. It has strong year‑round demand, especially in well‑located neighborhoods and with properties that are marketed and managed professionally.

Key Metrics & Highlights

• In the rankings for Pennsylvania (2025), Philadelphia is #1 in the state in terms of monthly revenue among STR markets; ADR is ~$154.02; occupancy ~44.36%.

• There are thousands of STR listings in Philadelphia (4,174 in that dataset) which show significant existing competition but also established demand. 

• Surrounding suburbs (for example, areas within commuting distance) offer slightly lower ADRs but better purchase price, easier acquisition and sometimes more favorable regulation.

Strengths & Opportunity

• Steady year‑round demand: Not just seasonal. Business travel, medical services, conferences, colleges, tourism provide multiple demand drivers.

• Reputable listing quality matters: Guests expect high standards; well‑furnished, well‑photographed, clean, convenient properties will perform very well.

• Neighborhood opportunity: Near key attractions, transit, downtown, or near universities/hospitals tends to have higher ADRs and better occupancy.

• Easier management infrastructure: Urban areas typically have more access to cleaning, maintenance, supplies, and experienced co‑hosting or property management services.

Risks

• Regulation and licensing requirements: Philadelphia has rules around STRs — licensing, tax collection, zoning. These must be navigated carefully.

• Competition & saturation: Many listings already exist; quality, location, guest experience can make or break performance.

• Lower ADR vs premium vacation markets: Urban rates tend to be less than high‑end vacation homes in nature areas, so margins depend heavily on occupancy and cost control.

• Neighborhood variance: Not all parts of the city perform equally; safety, walkability, local amenities matter a lot for guest satisfaction and repeat business.

3. Pittsburgh & Surrounding Areas — Best Lower‑Cost Urban Market

Why it stands out

Pittsburgh offers a strong balance: more affordable real estate costs than Philadelphia, established cultural, educational, tech, and medical economies, and growing interest in alternative lodging. For investors seeking urban STRs without the high entry cost of larger East Coast metros, Pittsburgh delivers.

Key Metrics & Highlights

• In the data, Pittsburgh is ranked #2 in Pennsylvania, with monthly revenue ~$2,066.70, average daily rate (ADR) ~$172.71, and occupancy ~46.42%.

• Comparisons show many listings in neighborhoods with good transit, amenities, and nightlife tend to outperform more remote/suburban ones.

Strengths & Opportunity

• Lower purchase price vs high ADR areas: Because costs are lower, return on investment (yield) can be higher even with moderate ADRs.

• Diverse demand base: University visitors, business travelers, medical, arts & culture, etc. Urban amenities draw guests even off‑peak.

• Room for differentiation: Upgrading older properties, providing high‑quality amenities, design, or service gives competitive edge.

• Regulatory risk is more moderate: Although local rules exist, many neighborhoods/suburbs may be more accommodating than high‑tourism rural/vacation destinations.

Risks

• Occupancy fluctuation: Urban STRs may have dips around holidays, academic breaks, off‑seasons. Advertisement / pricing strategy must be smart.

• Neighborhood safety, guest perception: Some Pittsburgh neighborhoods have reputational issues; property location, presentation, guest reviews critical.

• Operational cost & management: Urban properties often see more turnover, more wear & tear, higher cleaning/marketing costs.

• Local rules / licensing / taxes: Need to check city and local jurisdiction regulations; some may require registration, safety inspections, lodging taxes, etc.

4. Lancaster County / Lancaster, PA — Best for Rural Charm & Cultural Tourism

Why it stands out

Lancaster County (often “Amish Country” area) has strong appeal to tourists looking for cultural, historic, and scenic experiences. Antique markets, farmland scenery, cultural heritage, and close enough to East Coast metro regions make this area a perennial favorite. Homes with barn‑style architecture, rural charm, or historic feel perform well. Plus, many listings have lower acquisition costs than urban or coastal vacation markets, so positive cash flow is more achievable.

Key Metrics & Highlights

• From the “10 Best Short‑Term Rental Markets Under $500K That Cash Flow,” Lancaster is ranked #1 in that list. It has a median home price ~$360,383, occupancy ~56%, ADR ~$212.57, RevPAR ~$119.46. 

• Some top‑performing properties with amenities (hot tub, pet‑friendly, 3+ bedrooms) in Lancaster reach annual revenues up to $120,000 for premium listings.

Strengths & Opportunity

• Lower cost of entry vs top resort or coastal markets: Property values are more moderate, sometimes historic or rural homes with character offer value.

• Strong demand for cultural & seasonal tourism: Amish country, folk festivals, countryside getaways, antique shopping, food tourism.

• Ability to charge premium for amenities + charm: Unique or picturesque properties tend to stand out. Pet‑friendly, spa‑like upgrades, hot tubs, outdoor spaces help.

• Better regulatory environment in some rural zones: Less intense competition, fewer strict licensing or zoning rules in rural parts (though that’s changing).

Risks

• Seasonality: Peak periods around holidays, festivals, and summer may be strong; off‑peak could be slow. Must budget for downtime.

• Guest experience expectations: Even in rural towns, guests expect modern amenities, ease of check‑in, cleanliness, strong wifi, etc.—these costs must be included.

• Zoning and local ordinances: Even rural areas sometimes have restrictions; check local township policies on STR licensing, occupancy limits, parking, and noise.

• Competition in premium niche: Properties that offer unique style or experience tend to out‑earn generic listings; filler listings may struggle.

5. Kidder Township / Pocono Outskirts — Best High ADR / Luxury / Retreat Market

Why it stands out

Kidder Township (within the Pocono region) and similar townships on the outskirts of major vacation / nature zones, offer some of the highest ADRs in Pennsylvania. These are usually luxury or near‑luxury listings: large homes, scenic views, retreat‑style amenities. They attract guests willing to pay more for privacy, views, amenities, group capacity, and premium experience. For investors who can source such properties and maintain high standards, the returns can be substantial.

Key Metrics & Highlights

• In the Market Data, Kidder Township ranks #5 among top Pennsylvania STR markets, with ADR ~$453.16/night. Occupancy is lower (~33.4%), but the high rates compensate somewhat. 

• Similar nearby townships in the Pocono and Pocono outskirts (Coolbaugh, Penn Forest, etc.) also show very high ADRs (in the $300‑$400+ range) even with occupancy in the 30‑40% range.d

Strengths & Opportunity

• Very high ADRs when marketed well: Luxury features, beautiful natural surroundings, large capacity homes (3‑5+ bedrooms) perform well.

• Retreat / event appeal: Weddings, family reunions, retreats, group getaways like corporate retreats or wellness retreats can drive bookings.

• Premium amenities pay off: Views, hot tubs, high‑end furnishings, private access (e.g. lake, mountain) matter a lot.

• Less competition in luxury niche: Not everyone in Pocono outskirts is offering premium retreats; properly done luxury STRs may face less direct competition.

Risks

• Lower occupancy: With high ADRs, many nights are vacant; guest demand must be intentionally cultivated (marketing, off‑season deals).

• High cost to build/renovate/maintain: Luxury standards require more maintenance, costlier furnishings, insurance, utilities. Operational costs are higher.

• Regulation / zoning / infrastructure: Remote or rural townships may have fewer services, more restrictive zoning, or limited infrastructure (road access, internet).

• Seasonal variation: As with Poconos broadly, luxury retreats often see strong peaks and fairly weak off‑season performance.

Honorable Mentions & Rising Markets in Pennsylvania

Here are a few other STR markets that are showing good signs and may be worth exploring if you want more options:

• State College / University Town: Strong spikes during game weekends / university events; demand from parents, visitors. Variable occupancy, but potential for high revenues during peak university times. 

• Lancaster’s rural outskirts / Amish Country: Not just Lancaster city, but nearby townships offering rural charm with proximity to tourist interest.

• Smaller townships in Pocono region beyond Kidder / Coolbaugh / Tobyhanna etc. for those wanting nature + luxury.

Tips for Making STRs Work in Pennsylvania in 2025

Here are practical tips to maximize your chances of success if you invest in one of these markets:

1. Underwrite with realistic occupancy
   Don’t assume peak season fills will cover slow months. Use conservative estimates year‑round and budget for vacancies.

2. Invest in amenities & guest experience
   In vacation or high ADR markets, quality matters: good photos, décor, cleanliness, wifi, convenient check‑in/out, outdoor amenities, etc.

3. Location micro‑analysis
   Within a township or region, proximity to attractions, roads, views, quiet, parking, and amenities matter a lot. One street over can drastically affect occupancy or ADR.

4. Monitor local regulation continuously
   Attend local planning, zoning, or STR ordinance hearings; maintain compliance; anticipate possible changes—townships sometimes tighten rules once STRs become popular.

5. Distinguish your listing
   Whether via décor, special amenities, pet‑friendly offerings, outdoor space, group‑friendly layout, or unique architecture, differentiation helps in crowded markets.

6. Manage costs & operations
   Remote properties need reliable service providers; luxury ones have higher maintenance. Plan for insurance, cleaning, utilities, upkeep. Consider remote management if needed.

7. Use dynamic pricing & seasonal variations
   Adjust pricing by season, event demand, weekends vs weekdays; avoid leaving high‑ADR nights unbooked because pricing is too high. But also capture premium for holidays, events.

8. Have an exit or conversion plan
   If regulations tighten, or if demand drops, ensure your property could shift to longer‑term rent or be sold without massive loss.

Here’s a quick comparison helping you decide which Pennsylvania town may suit your investment goals, budget, and risk tolerance:

Each of the above towns or regions offers opportunities, with trade‑offs:

• Cost vs ADR (luxury high‑ADR properties cost more, require more upkeep)

• Seasonality vs year‑round occupancy

• Regulation risk, local ordinances, and required compliance

• Guest experience and property quality matters more as competition increases

If you implement strong operations, maintain high standards, keep up with regulations, and choose properties thoughtfully, all of these markets have the potential to generate above average returns for STR investors in Pennsylvania in 2025.