Is Cresco, Pennsylvania Good for Airbnb Investment?

To start an Airbnb in Cresco, Pennsylvania, begin by researching Monroe County and Pocono Township regulations, as Cresco falls under their jurisdiction and typically requires a business license and may need zoning approval for short-term rentals. Contact Monroe County Planning Commission (570-517-3100) and Pocono Township offices to obtain necessary permits, which usually include a Certificate of Occupancy and potential fire safety inspections. Find a suitable property in Cresco's vacation rental market, focusing on areas near popular Pocono Mountains attractions like ski resorts and lakes, with properties typically ranging from $200,000-$500,000 depending on size and location. Furnish the property with durable, comfortable furniture suitable for vacation guests, including essentials like linens, kitchen supplies, and outdoor furniture to capitalize on the area's recreational appeal. Create your Airbnb listing with high-quality photos showcasing mountain views and proximity to attractions like Jack Frost Big Boulder, Camelback Mountain, and Lake Wallenpaupack, pricing competitively between $100-$300 per night depending on season and property size. Manage the property by establishing relationships with local cleaning services, maintenance contractors familiar with seasonal properties, and consider using property management companies like Vacasa or RedAwning that operate in the Pocono region, while maintaining Pennsylvania state tax compliance including 6% sales tax and 3% Philadelphia-area tax if applicable, plus Monroe County's 3% hotel tax on short-term rentals.

To identify profitable short-term rental properties in Cresco, Pennsylvania, focus on locations within 5-10 minutes of major attractions like Big Boulder and Jack Frost ski resorts, Lake Harmony, Hickory Run State Park, and the Pocono Raceway, as these drive consistent seasonal demand. Target properties with 3-4 bedrooms, 2+ bathrooms, outdoor amenities like hot tubs, fire pits, or lake access, and modern kitchens since families and groups comprise the primary market. Analyze pricing using AirDNA and Mashvisor to benchmark against comparable properties, aiming for $150-300 per night depending on size and amenities, with higher rates during ski season (December-March) and summer months (June-August). Research competition by studying listings within a 3-mile radius on Airbnb and VRBO, noting occupancy rates, guest reviews, and pricing strategies of top performers. Utilize tools like Rabbu, AllTheRooms, and local MLS data to identify undervalued properties, while consulting Monroe County tourism data and connecting with local real estate agents familiar with the Pocono Mountains vacation rental market to understand seasonal trends, local regulations, and emerging neighborhoods that could offer better investment opportunities.

To obtain an Airbnb/STR permit in Cresco, Pennsylvania, you must first contact the Barrett Township municipal office since Cresco falls under this jurisdiction, located at 2079 Milford Road, East Stroudsburg, PA 18302, or call (570) 629-0800 to inquire about short-term rental regulations as requirements vary by township in Monroe County. You'll typically need to submit a completed rental permit application, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the local fire department, proof of liability insurance (usually $1 million minimum), floor plan showing maximum occupancy, and contact information for a local property manager if you're not residing nearby. Required documents often include a current deed, tax assessment records, and sometimes a zoning compliance letter confirming the property is in an area that permits short-term rentals. Application fees generally range from $100-300 initially with annual renewal fees of $50-150, though Barrett Township may have specific fee structures. The approval timeline typically takes 30-60 days depending on inspection scheduling and document review, with fire safety and building code inspections being mandatory before permit issuance. Specific local requirements may include parking provisions for guests, noise ordinance compliance, maximum occupancy limits based on bedrooms and square footage, 24/7 local contact availability, and adherence to Pennsylvania's transient accommodation tax collection requirements.

Short-term rentals (STRs) are generally legal in Cresco, Pennsylvania, as the state does not prohibit them at the state level, but regulation occurs primarily at the local municipal level. Cresco, located in Monroe County in the Pocono Mountains region, falls under Paradise Township's jurisdiction, which has historically allowed vacation rentals given the area's tourism-dependent economy. However, operators must comply with local zoning ordinances, obtain proper permits, and adhere to safety requirements including smoke detectors and occupancy limits. The township has implemented registration requirements for STR operators as of approximately 2020-2022, requiring annual permits and inspections. Properties must maintain adequate parking, septic systems capable of handling transient occupancy, and cannot operate in areas zoned exclusively residential without special permits. Recent changes have included stricter noise ordinances and requirements for local contact persons available 24/7 to address complaints. Monroe County has also implemented a hotel tax that applies to STRs, and operators must collect and remit these taxes. The legal landscape remains favorable for STRs in Cresco due to the area's reliance on tourism, but increasing regulation reflects growing concerns about impacts on local housing availability and community character.

The best areas for Airbnb investment in Cresco, Pennsylvania are primarily concentrated around the Pocono Mountains region, particularly near Big Boulder and Jack Frost ski resorts which attract year-round visitors for skiing in winter and mountain biking in summer. The Lake Naomi and Timber Trails communities offer excellent investment potential due to their proximity to private lakes, golf courses, and resort amenities that draw families and couples seeking weekend getaways from New York City and Philadelphia metropolitan areas. The Tannersville-Scotrun corridor, though technically adjacent to Cresco, provides strong rental demand from visitors to Camelback Mountain Resort, Great Wolf Lodge, and Kalahari Resort, making properties within a 10-15 minute drive highly desirable. Areas near Promised Land State Park and Tobyhanna State Park are attractive for nature enthusiasts and outdoor recreation tourists, particularly during peak summer and fall foliage seasons. The Mount Pocono region benefits from business travelers and conference attendees visiting the numerous corporate retreat centers and wedding venues scattered throughout the area, while properties near major routes like Interstate 380 and Route 191 offer convenience for guests traveling from major metropolitan areas, making them consistently bookable throughout the year.

In Cresco, Pennsylvania, Airbnb properties are subject to Pennsylvania's 6% state sales tax on lodging accommodations, which applies to rentals of less than 30 consecutive days. Monroe County, where Cresco is located, imposes an additional 3% hotel occupancy tax, bringing the total tax rate to approximately 9% on short-term rental income. These taxes are typically collected from guests at the time of booking through Airbnb's automated tax collection system, which remits payments directly to the Pennsylvania Department of Revenue on a monthly basis for properties that have opted into this service. Hosts who are not using Airbnb's collection service must register with the Pennsylvania Department of Revenue, obtain a sales tax license, collect taxes from guests, and remit payments quarterly using form PA-1. Properties rented for 30 days or more are generally exempt from these occupancy taxes, and certain nonprofit or charitable organizations may qualify for exemptions with proper documentation, though most standard Airbnb rentals in Cresco will be subject to the full 9% combined tax rate.

Starting an Airbnb in Cresco, Pennsylvania requires approximately $180,000-220,000 in total initial investment. Property purchase costs around $150,000-180,000 based on median home prices in the Pocono Mountains region as of 2023-2024. Furnishing a 2-3 bedroom property typically costs $8,000-12,000 including beds, linens, kitchen essentials, living room furniture, and décor from retailers like IKEA, Wayfair, and local furniture stores. Initial setup expenses including professional photography, listing creation, and basic renovations total $2,000-3,000. Permits and fees in Monroe County include short-term rental permits ($200-500), business licenses ($100-300), and potential zoning compliance costs ($500-1,000). Insurance premiums for short-term rental coverage through companies like Proper Insurance or CBIZ run $1,200-2,000 annually. Utility setup and deposits for electricity, water, internet, and cable cost approximately $500-800. First six months of operating costs including utilities ($300-500/month), cleaning services ($75-100 per turnover), maintenance reserves ($200-400/month), platform fees to Airbnb and VRBO (3% of bookings), and marketing expenses total $4,000-7,000, assuming 60-70% occupancy rates typical for the Pocono region.

Airbnb properties in Cresco, Pennsylvania, located in the Pocono Mountains region, typically generate annual revenues ranging from $15,000 to $35,000 for standard 2-3 bedroom properties, with luxury cabins and lakefront homes earning $40,000-$60,000 annually. Operating expenses generally consume 40-60% of gross revenue, including cleaning fees ($75-150 per turnover), property management (15-25% of revenue), utilities ($200-400 monthly), insurance ($1,500-3,000 annually), and maintenance costs averaging $3,000-5,000 yearly. Net profit margins typically range from 15-35% for well-managed properties, with seasonal variations showing peak performance during summer months (June-August) and winter ski season (December-February) when nightly rates can reach $200-400 compared to off-season rates of $80-150. Success factors include proximity to popular attractions like Lake Wallenpaupack, Bushkill Falls, and ski resorts such as Jack Frost Big Boulder, with properties featuring amenities like hot tubs, game rooms, and outdoor fire pits commanding premium rates. A case study of a 4-bedroom lakefront cabin purchased for $280,000 in 2019 generated $45,000 in gross revenue in 2022 with $18,000 in expenses, yielding a 9.6% return on investment, while a modest 2-bedroom mountain retreat bought for $180,000 earned $28,000 gross with $14,000 expenses, achieving a 7.8% ROI.

Airbnb investments in Cresco, Pennsylvania typically generate annual ROI of 12-18% based on the area's proximity to Pocono Mountains recreational activities and seasonal tourism patterns. Cash-on-cash returns generally range from 8-14% annually, with properties averaging $150-250 per night during peak summer and winter seasons, dropping to $80-120 during shoulder periods. Most investors achieve profitability within 18-24 months, with properties near Lake Wallenpaupack or ski resorts like Jack Frost Big Boulder commanding premium rates. The market benefits from consistent demand from New York and Philadelphia metro area visitors, with occupancy rates typically running 65-75% annually. Initial investment costs average $200,000-350,000 for suitable properties, with annual operating expenses including property management, utilities, and maintenance typically consuming 35-45% of gross rental income.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for Airbnb investors in Cresco, Pennsylvania. Local real estate agents serving the Pocono Mountains region include Keller Williams Real Estate Pocono Mountains, RE/MAX Best Choice Realty, and Century 21 Pinnacle who have experience with vacation rental properties in the area. National services like Mashvisor, BiggerPockets, and AirDNA provide market analysis and property identification tools for the Cresco market. Vacasa and RedAwning offer property management services for investors looking to optimize their Airbnb operations in the region. Local property management companies such as Pocono Mountain Rentals and Mountain View Property Management specialize in short-term rental management in the Pocono region. Investment-focused platforms like Roofstock and Arrived Homes occasionally feature properties in the Pennsylvania Pocono area suitable for Airbnb conversion. Real estate investment groups and meetups in nearby Stroudsburg and East Stroudsburg also provide networking opportunities for finding off-market deals and connecting with local professionals experienced in vacation rental investments.