Is Centre Hall, Pennsylvania Good for Airbnb Investment?

To start an Airbnb in Centre Hall, Pennsylvania, begin by researching local zoning laws through Centre County Planning and Community Development Office, as Centre Hall falls under Centre County jurisdiction and may require special use permits for short-term rentals in residential zones. Contact Centre Hall Borough Council to verify any municipal ordinances regarding vacation rentals, obtain necessary business licenses, and check if you need a Pennsylvania sales tax license through the Department of Revenue. Find a suitable property by searching local real estate listings or considering your existing home, ensuring it meets safety requirements including smoke detectors, carbon monoxide detectors, and adequate egress windows. Furnish the space with quality basics including comfortable beds, linens, towels, kitchen essentials, WiFi, and local guidebooks highlighting nearby Penn State University and local attractions. Create your Airbnb listing with professional photos, competitive pricing (typically $80-150/night in the area due to proximity to State College), and detailed descriptions emphasizing the rural charm and university access. For ongoing management, establish check-in procedures, maintain cleaning schedules between guests, respond promptly to inquiries, stock supplies regularly, and consider hiring local cleaning services or property management companies if needed. Ensure compliance with Pennsylvania's 6% sales tax collection requirements and maintain proper insurance coverage, as standard homeowner's policies may not cover short-term rental activities.

To identify profitable short-term rental properties in Centre Hall, Pennsylvania, focus on locations within 10-15 minutes of Penn State University campus and near outdoor recreation areas like Bald Eagle State Forest, as this college town benefits from university visitors, parents, and outdoor enthusiasts year-round. Target 3-4 bedroom properties built after 1980 with modern amenities, parking for multiple vehicles, and outdoor spaces, as groups visiting the university or exploring central Pennsylvania prefer larger accommodations. Analyze pricing using AirDNA and Mashvisor to benchmark against similar properties in State College and Bellefonte, aiming for $100-200 per night depending on size and season, with peak demand during Penn State football season, graduation, and summer months. Research competition by monitoring active Airbnb and VRBO listings within a 20-mile radius, noting occupancy rates typically range 60-75% annually in this market. Utilize tools like Rabbu for local STR regulations, STR Helper for performance tracking, and connect with Centre County tourism boards while monitoring Penn State's academic calendar and major events to optimize pricing and availability, as the university's 40,000+ student body and associated visitor traffic drives consistent demand in this rural but strategically located market.

To obtain an Airbnb/STR permit in Centre Hall, Pennsylvania, you must first contact the Centre County Planning and Community Development Office at 814-355-6791 or visit their office at 420 Holmes Street, Bellefonte, PA, as Centre Hall falls under Centre County jurisdiction and may require county-level permits in addition to local township approval. Begin by contacting Potter Township (which governs Centre Hall) at their municipal building to determine specific zoning compliance and obtain a zoning permit application, typically costing $50-100. Required documents include a completed application form, property deed or lease agreement, site plan showing parking and emergency access, proof of liability insurance (minimum $1 million), fire safety inspection certificate from the local fire department, and sewage planning module if applicable. Submit your application with a $150-300 fee to Potter Township, then schedule required inspections for building code compliance, fire safety, and health department approval if serving food. The process typically takes 4-6 weeks for approval, during which you must also register with the Pennsylvania Department of Revenue for tax collection purposes and obtain a Centre County occupancy permit. Once approved, you'll receive your STR permit valid for one year, requiring annual renewal with updated insurance documentation and inspection certificates, plus compliance with maximum occupancy limits (typically 2 people per bedroom plus 2 additional) and parking requirements of one space per bedroom.

Short-term rentals (STRs) in Centre Hall, Pennsylvania are generally legal but subject to local zoning regulations and state requirements. Centre Hall, located in Centre County, does not appear to have specific municipal ordinances prohibiting STRs as of 2023, but operators must comply with Pennsylvania's sales tax requirements and potentially local zoning restrictions that may limit STRs in certain residential districts. The borough follows typical small-town Pennsylvania regulations where STRs are treated as commercial activities that may require zoning compliance and business licensing. Recent trends in Pennsylvania have seen increased local regulation of STRs, with some municipalities implementing registration requirements, occupancy limits, and parking restrictions, though Centre Hall has not enacted comprehensive STR-specific legislation. Property owners should verify current zoning compliance with the borough office and ensure proper tax registration with the Pennsylvania Department of Revenue, as enforcement of existing regulations rather than new prohibitions has been the primary focus in smaller Pennsylvania communities like Centre Hall.

The best areas for Airbnb investment in Centre Hall, Pennsylvania are the downtown historic district near the Pennsylvania Military Museum and Boal Mansion, which attracts history enthusiasts and cultural tourists year-round, and properties within 2-3 miles of Penn's Cave & Wildlife Park, drawing families and adventure tourists seeking unique underground boat tours and wildlife experiences. The residential neighborhoods along Spring Creek offer scenic waterfront appeal for nature lovers and fishing enthusiasts, while areas near Route 192 provide convenient access for visitors attending events at nearby Penn State University (approximately 15 miles away) who prefer quieter accommodations outside State College. Properties near the Centre County Grange Encampment and Fair grounds benefit from annual agricultural events and festivals, and locations within walking distance of local Amish farms and markets attract agritourism visitors interested in authentic rural Pennsylvania experiences, making these areas particularly attractive during peak summer and fall seasons when outdoor activities and university events drive consistent demand.

Centre Hall, Pennsylvania imposes a local lodging tax of 3% on short-term rental accommodations including Airbnb properties, which is collected by the property owner or host and must be remitted quarterly to the Centre County Tax Collection Office by the 15th day following each quarter end. Pennsylvania state sales tax of 6% also applies to lodging rentals under 30 days, with an additional 1% Philadelphia Use Tax that may apply in certain circumstances, bringing the total tax burden to approximately 10% for most Airbnb stays. The Centre County Tourism Promotion Agency levies an additional 2% occupancy tax on all transient accommodations, collected through the same quarterly remittance process. Hosts must register with the Pennsylvania Department of Revenue for sales tax purposes and obtain a Centre Hall business license, with exemptions typically limited to stays exceeding 30 consecutive days or rentals to permanent residents. Collection occurs at the time of booking or check-in, and failure to remit taxes can result in penalties of 5% per month plus interest charges of 1% monthly on unpaid balances.

The total cost to start an Airbnb in Centre Hall, Pennsylvania would be approximately $285,000-$315,000. Property purchase costs around $220,000-$250,000 based on median home prices in the area. Furnishing a 2-3 bedroom property would cost $15,000-$20,000 including beds, linens, kitchen essentials, living room furniture, and decor. Initial setup costs including professional photography, listing creation, and basic renovations would be $3,000-$5,000. Permits and fees including business license, short-term rental permit, and tax registrations would cost $500-$1,000. Insurance including landlord and short-term rental coverage would be $2,000-$3,000 annually. Utilities setup and deposits for electricity, water, internet, and cable would cost $500-$800. First six months operating costs including utilities ($1,800), cleaning supplies and services ($1,200), maintenance ($800), marketing ($600), and platform fees on estimated bookings ($2,400) would total approximately $6,800. Additional costs might include property management software subscriptions ($300), welcome amenities ($200), and emergency fund reserves ($5,000-$10,000).

Airbnb properties in Centre Hall, Pennsylvania, typically generate annual revenues of $15,000-$35,000 for single-family homes and $8,000-$18,000 for apartments, with average daily rates ranging from $80-$150 depending on proximity to Penn State University and seasonal demand. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($30-50 per turnover), property management (15-25% of revenue), utilities ($150-300 monthly), insurance ($1,200-2,000 annually), and maintenance costs averaging $2,000-4,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with higher margins achieved by hosts who handle their own cleaning and guest communication. Success factors include strategic pricing during Penn State football weekends and graduation periods when rates can increase 200-300%, maintaining high cleanliness standards to achieve Superhost status, and targeting the family visitor market rather than student parties. Properties within 10 miles of University Park command premium rates, with some hosts reporting annual profits of $8,000-$15,000 on properties valued at $200,000-$300,000, representing solid 4-7% returns on investment when combined with property appreciation in this stable college town market.

Based on Centre Hall, Pennsylvania market conditions, Airbnb investments typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% depending on property type and location within the borough. Properties near Penn State University (approximately 15 minutes away) command higher rates during football season and academic year, with average daily rates of $120-180 for 2-3 bedroom properties. Initial investment recovery generally occurs within 7-10 years, with monthly gross revenues averaging $1,800-3,200 for well-positioned properties. The proximity to outdoor recreation areas like Bald Eagle State Forest and Penn's Cave enhances occupancy rates to approximately 65-75% annually. Cash-on-cash returns improve significantly after year 3 as mortgage principal reduction accelerates, with experienced operators achieving 12-15% returns by leveraging seasonal demand patterns and maintaining properties to attract both university visitors and outdoor recreation tourists throughout the year.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors looking to enter the Airbnb market in Centre Hall, Pennsylvania. Local real estate agents serving the Centre Hall area include Coldwell Banker Howard Perry and Walston, Re/Max Centre County, and Keller Williams of Central PA, many of whom have experience with investment properties suitable for short-term rentals. National services like Mashvisor, AirDNA, and BiggerPockets provide market analysis and property identification tools for Airbnb investors in smaller Pennsylvania markets. Regional companies such as Keystone Real Estate Group and Mountain View Realty have knowledge of the State College area vacation rental market that extends to Centre Hall. Additional services include RedAwning for property management and marketing, Vacasa for full-service Airbnb management, and local property management companies like Happy Valley Property Management that can assist with the operational aspects of short-term rental investments in the Centre Hall region.