Is Carlisle, Pennsylvania Good for Airbnb Investment?

To start an Airbnb in Carlisle, Pennsylvania, begin by researching local zoning laws and regulations through the Cumberland County Planning Department and Carlisle Borough offices, as the city typically requires short-term rentals to comply with residential zoning restrictions and may require a business license or special use permit. Contact the Carlisle Borough at 717-249-4422 to verify specific permit requirements, which often include a rental inspection certificate and compliance with fire safety codes. Find a suitable property in residential areas like the Historic District or neighborhoods near Dickinson College, ensuring it meets the city's occupancy limits (usually 2 people per bedroom plus 2 additional). Purchase essential furnishings including quality mattresses, linens, basic kitchen appliances, WiFi equipment, and safety items like smoke detectors and fire extinguishers, budgeting approximately $3,000-$8,000 for a complete setup. Create your Airbnb listing with professional photos highlighting proximity to attractions like the Army Heritage and Education Center, Dickinson College, and downtown Carlisle's restaurants and shops, setting competitive rates around $80-150 per night based on local market analysis. Manage your property by establishing check-in procedures, maintaining cleanliness standards, responding promptly to guest inquiries, and ensuring compliance with Pennsylvania's 6% sales tax and local occupancy tax requirements while keeping detailed records for tax purposes and coordinating with cleaning services and maintenance contractors as needed.

To identify profitable short-term rental properties in Carlisle, Pennsylvania, focus on locations within walking distance of Dickinson College campus, near the Army War College, or close to downtown's historic district and restaurant scene along High Street. Target 2-4 bedroom properties built after 1950 with updated kitchens, reliable WiFi capability, parking spaces, and period charm that appeals to visiting parents, military personnel, and business travelers. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for average daily rates between $80-150 depending on size and location, with occupancy rates above 65% being profitable in this market. Research competition by studying existing Airbnb and VRBO listings within 3 miles, noting their amenities, pricing strategies, and guest reviews to identify gaps in service or underserved property types. Utilize tools like Rabbu and AllTheRooms for market analysis, connect with local real estate agents familiar with investment properties, monitor Carlisle Borough's short-term rental regulations, and consider properties near major employers like FedEx Ground headquarters and the Pennsylvania Turnpike Commission which generate consistent business travel demand year-round.

To obtain an Airbnb/STR permit in Carlisle, Pennsylvania, you must first contact the Carlisle Borough Planning and Zoning Department at Borough Hall located at 53 West South Street to determine if short-term rentals are permitted in your specific zoning district, as regulations vary by zone. Submit a completed business license application along with a zoning permit application, providing required documents including proof of property ownership or lease agreement, floor plans showing the rental space, proof of liability insurance (typically $1 million minimum), fire safety inspection certificate from the Carlisle Fire Department, and a site plan showing parking availability. Pay the associated fees which typically range from $50-150 for the business license and $75-200 for zoning permits, though exact amounts should be confirmed with the borough office. Schedule required inspections including fire safety, building code compliance, and zoning compliance inspections, which may take 2-4 weeks to complete. The entire permit process generally takes 4-8 weeks from initial application to final approval, depending on inspection scheduling and any required corrections. Carlisle specifically requires STR operators to maintain adequate off-street parking (typically one space per rental unit), comply with noise ordinances, post maximum occupancy limits, and maintain the property according to borough housing standards, with annual renewal of permits typically required along with updated inspections.

Short-term rentals (STRs) in Carlisle, Pennsylvania operate in a complex regulatory environment as of 2024. The city has implemented zoning restrictions that generally prohibit STRs in residential districts, allowing them primarily in commercial and mixed-use zones with proper permits and licensing. Property owners must obtain a business license, comply with fire safety codes, maintain liability insurance, and adhere to occupancy limits typically capped at 8-10 guests depending on the property size. Recent changes in 2022-2023 included stricter enforcement of existing regulations and enhanced penalties for non-compliance, with the city requiring annual inspections and neighbor notification processes. Carlisle has also established quiet hours from 10 PM to 7 AM and mandates that operators provide 24-hour contact information for noise complaints. The city prohibits STRs in historic districts without special approval from the Historic Architectural Review Board, and properties must maintain off-street parking requirements. Violations can result in fines ranging from $300-$1,000 per incident, and repeat offenders may face license revocation.

The best areas for Airbnb investment in Carlisle, Pennsylvania include the Historic Downtown District, which attracts tourists visiting the Cumberland County Historical Society and attending events at the Carlisle Theatre, plus business travelers accessing the central business core. The Dickinson College area offers strong rental demand from visiting families, prospective students, and academic conference attendees year-round. The South Hanover Street corridor near the Carlisle Fairgrounds is highly profitable during major events like the Carlisle Import & Kit Car Nationals and Fall Carlisle auto shows, which draw thousands of visitors annually. The West High Street neighborhood provides good returns due to its proximity to Carlisle Barracks and the U.S. Army War College, generating consistent demand from military families and defense contractors. Finally, properties near the Pennsylvania Turnpike interchange capture overflow demand from travelers and business visitors to nearby Harrisburg who prefer Carlisle's lower accommodation costs and historic charm.

In Carlisle, Pennsylvania, Airbnb hosts are subject to both state and local lodging taxes. The Pennsylvania state hotel occupancy tax is 6% on gross rental receipts, which applies to all short-term rentals under 30 days. Cumberland County imposes an additional 3% hotel tax, bringing the total occupancy tax to 9%. The City of Carlisle may impose its own local lodging tax of approximately 1-2%, though this varies by municipal ordinance. These taxes are typically collected by Airbnb directly from guests at the time of booking for properties where Airbnb has tax collection agreements, and the platform remits payments quarterly to the appropriate tax authorities. For properties where Airbnb doesn't collect taxes automatically, hosts must register with the Pennsylvania Department of Revenue and Cumberland County tax office, collect taxes from guests, and remit payments monthly or quarterly depending on volume. Exemptions generally apply to stays of 30 days or longer, which are considered long-term rentals rather than transient accommodations, and may apply to certain government or charitable organization bookings with proper documentation.

The total cost to start an Airbnb in Carlisle, Pennsylvania is approximately $185,000-$225,000. Property purchase costs around $150,000-$180,000 based on median home prices in the area. Furnishing a 2-3 bedroom property requires $8,000-$12,000 for essential furniture, bedding, kitchen supplies, and decor. Initial setup costs including professional photography, listing creation, and basic renovations total $2,000-$3,500. Permits and fees including business license, short-term rental permit, and inspection fees range from $500-$1,200. Insurance premiums for short-term rental coverage cost $1,200-$2,000 annually. Utility deposits and setup fees for electricity, gas, water, internet, and cable total $800-$1,500. First six months operating costs including utilities ($600/month), cleaning services ($100/visit), supplies and maintenance ($200/month), platform fees (3% of bookings), and marketing expenses total approximately $6,000-$8,500, assuming moderate occupancy rates of 50-60% during the initial period.

Airbnb properties in Carlisle, Pennsylvania typically generate annual revenues between $15,000-$35,000 depending on property type and location, with average daily rates ranging from $75-$120 for entire homes and $45-$75 for private rooms. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($25-$40 per turnover), utilities ($150-$250 monthly), property management (10-20% of revenue if outsourced), insurance ($800-$1,500 annually), and maintenance costs averaging $2,000-$4,000 yearly. Properties near Dickinson College and the Army War College command premium rates, particularly during graduation weekends and military events, with some hosts reporting occupancy rates of 65-75% and net profit margins of 25-35%. A typical 3-bedroom home purchased for $180,000 and generating $28,000 annually in Airbnb revenue can yield approximately $8,000-$12,000 in net profit after expenses, representing a 4.5-6.7% return on investment. Success factors include proximity to major attractions like the Carlisle Fairgrounds (which hosts large automotive events), professional photography, responsive communication, and strategic pricing during peak demand periods such as college events and seasonal festivals, with the most profitable properties being those that cater to business travelers and families visiting local institutions.

Airbnb investments in Carlisle, Pennsylvania typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10%, depending on property type and location within the market. Properties near Dickinson College and the Army War College tend to perform better, with investors seeing profitability within 18-24 months of initial investment. The market benefits from consistent demand from college visitors, military personnel, and tourists visiting nearby Gettysburg, with average daily rates of $85-120 and occupancy rates of 65-75% annually. Initial investment requirements typically range from $40,000-80,000 for down payments on suitable properties valued between $150,000-300,000, with gross rental yields averaging 10-14% before expenses. The relatively stable local economy and proximity to major metropolitan areas like Harrisburg contribute to consistent performance, though seasonal fluctuations occur with peak demand during college events and summer tourism months.

STRSearch is a leading national platform that helps investors identify profitable short-term rental properties in Carlisle, Pennsylvania by providing market analytics and property recommendations. Local real estate agents specializing in investment properties in the Carlisle area include Berkshire Hathaway HomeServices Homesale Realty, Coldwell Banker Residential Brokerage, and RE/MAX of Carlisle, with agents like those at The Lori Hess Team and Cumberland Valley Properties focusing on rental investment opportunities. National services include Mashvisor, which offers Airbnb analytics and property search tools for the Carlisle market, AirDNA for short-term rental data analysis, Roofstock for turnkey rental properties, and BiggerPockets for investor networking and deal sourcing. Additional local services include Carlisle Investment Properties LLC, Central PA Property Management for ongoing rental management, and local property scouts who specialize in finding off-market deals in Cumberland County. Companies like RedAwning and AvantStay also provide market insights and property management services for short-term rental investors looking to enter the Carlisle market, which benefits from its proximity to Harrisburg and tourism related to the Army War College and local attractions.