Is Hershey, Pennsylvania Good for Airbnb Investment?

To start an Airbnb in Hershey, Pennsylvania, begin by researching local regulations as Dauphin County and Hershey Township require short-term rental permits and compliance with zoning laws that typically allow rentals in residential areas with proper registration. Obtain necessary permits including a business license from Dauphin County ($50-100), short-term rental permit from Hershey Township ($150-250 annually), and ensure compliance with Pennsylvania state tax requirements including 6% sales tax and 5% hotel occupancy tax registration with the Department of Revenue. Find a suitable property within Hershey's tourist zones, particularly near Hersheypark, downtown areas, or residential neighborhoods zoned for short-term rentals, with properties typically ranging $200,000-400,000 for purchase or $1,500-2,500 monthly for rental arbitrage opportunities. Furnish the space with quality furniture, linens, kitchen essentials, and Hershey-themed touches, budgeting $8,000-15,000 for a complete setup including safety equipment like smoke detectors, carbon monoxide detectors, and first aid kits as required by local fire codes. List your property on Airbnb, VRBO, and Booking.com with professional photography highlighting proximity to Hersheypark (typically 1-3 miles), competitive pricing at $80-200 per night depending on season and capacity, and detailed descriptions of amenities and local attractions. Manage the property by establishing cleaning protocols between guests, responding to inquiries within one hour, coordinating check-ins/check-outs, maintaining the property regularly, and potentially hiring local cleaning services like Hershey area companies that charge $75-125 per turnover, while ensuring compliance with ongoing permit renewals and tax filings quarterly with Pennsylvania Department of Revenue.

To identify profitable short-term rental properties in Hershey, Pennsylvania, focus on locations within 2-3 miles of Hersheypark and Hershey's Chocolate World, as these attractions drive year-round demand with peak seasons during summer months and holiday events. Target 3-4 bedroom single-family homes or townhouses built after 1990 with modern amenities, full kitchens, parking for 4+ vehicles, and outdoor spaces like decks or patios that can accommodate families visiting the theme park. Analyze pricing using AirDNA and Mashvisor to identify properties where nightly rates of $150-300 can generate 60-70% occupancy rates, ensuring purchase prices below $300,000 to maintain healthy profit margins after expenses. Research competition by studying existing STR listings within a 5-mile radius of Hersheypark, noting their amenities, pricing strategies, and guest reviews to identify market gaps such as pet-friendly properties or homes with game rooms. Utilize tools like Rabbu, AllTheRooms, and local MLS data combined with Hershey tourism statistics from Visit Hershey Harrisburg to understand seasonal demand patterns, while monitoring zoning regulations through Derry Township's planning department since Hershey has specific STR licensing requirements that affect profitability and operational feasibility.

To obtain an Airbnb/STR permit in Hershey, Pennsylvania, you must first contact the Derry Township Planning Department at 600 Clearwater Road, Hershey, PA 17033, as Hershey operates under Derry Township jurisdiction. Submit a Special Exception Application along with required documents including property deed, site plan, floor plan showing maximum occupancy, proof of property insurance, contact information for a local property manager (if you're non-resident), and parking plan documentation. The application fee is approximately $500-750, with additional hearing fees of around $200-300. Required documents also include a completed zoning compliance form, neighbor notification affidavits (properties within 200 feet), and proof of compliance with fire safety codes. The process typically takes 60-90 days and requires a public hearing before the Zoning Hearing Board. Specific Hershey requirements include maximum occupancy limits based on bedrooms and square footage, mandatory local contact person available 24/7, adequate off-street parking (typically 2 spaces minimum), compliance with noise ordinances, and annual renewal with the township. Once approved, you must also register with the Pennsylvania Department of Revenue for tax collection purposes and obtain any necessary business licenses, with the entire process from application to operation typically taking 3-4 months.

Short-term rentals (STRs) in Hershey, Pennsylvania operate under Derry Township's zoning regulations, where they are generally permitted in residential areas but subject to specific restrictions and licensing requirements. As of 2023, STRs must obtain a special exception permit from the township's zoning hearing board and comply with occupancy limits, parking requirements, and noise ordinances. Properties must be owner-occupied or have a local property manager available 24/7, and rentals are limited to no more than 14 consecutive days. The township prohibits STRs in certain residential districts and requires annual inspections for safety compliance. Recent changes in 2022 strengthened enforcement mechanisms and increased penalties for violations, while also establishing a complaint process for neighbors. All STR operators must register with the township, maintain liability insurance, and collect applicable taxes including the 6% Pennsylvania sales tax and local occupancy taxes.

The best areas for Airbnb investment in Hershey, Pennsylvania include the downtown Hershey area near Chocolate Avenue and the Entertainment District, which offers proximity to Hersheypark (attracting 3+ million visitors annually since the 1970s), Hershey's Chocolate World, and the Giant Center arena that hosts concerts and sporting events year-round. The Derry Township neighborhoods surrounding the Hershey Lodge and Convention Center are highly attractive due to consistent business travel and conference attendees, particularly given Hershey Entertainment & Resorts' extensive corporate event hosting. Areas near the Hershey Country Club and Hotel Hershey provide upscale accommodation opportunities for visitors attending weddings, golf tournaments, and luxury tourism experiences. The residential neighborhoods along Bullfrog Valley Road and near Hersheypark Drive benefit from theme park proximity while offering more affordable property acquisition costs, making them ideal for family-oriented short-term rentals during peak summer and holiday seasons when Hersheypark operates extended hours and hosts special events like Hersheypark in the Dark during October.

In Hershey, Pennsylvania, Airbnb hosts are subject to multiple lodging taxes including the Pennsylvania state hotel occupancy tax of 6%, Dauphin County's hotel tax of 5%, and potentially a local Derry Township occupancy tax of approximately 3-5%. These taxes totaling around 14-16% are typically collected from guests at the time of booking through Airbnb's automatic tax collection system, which remits the state and county portions directly to the respective tax authorities on behalf of hosts. However, hosts may need to register separately with Derry Township to handle local tax obligations and file quarterly returns. The taxes apply to stays of less than 30 consecutive days, with exemptions generally available for monthly rentals, certain government employees, and in some cases nonprofit organizations. Hosts should verify current local tax requirements with Derry Township as rates and collection procedures can change, and maintain detailed records of all bookings and tax collections for compliance purposes.

The total cost to start an Airbnb in Hershey, Pennsylvania is approximately $285,000-$320,000. Property purchase costs around $250,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property requires $15,000-$25,000 for quality furniture, bedding, kitchen essentials, and decor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total $3,000-$5,000. Permits and fees vary but typically include business license ($50-$200), short-term rental permit ($100-$500), and potential zoning compliance costs ($500-$2,000). Insurance for short-term rentals costs $1,200-$2,000 annually, significantly higher than standard homeowner's insurance. Utility setup and deposits for electricity, gas, water, internet, and cable run $500-$800 initially. First six months of operating costs including utilities ($200/month), cleaning services ($100-$150 per turnover), maintenance reserves ($200/month), property management software ($50/month), and marketing expenses total approximately $3,500-$5,500, assuming 60-70% occupancy rates typical for the Hershey tourism market.

Airbnb properties in Hershey, Pennsylvania demonstrate strong profitability potential due to the city's status as a major tourist destination anchored by Hersheypark and Hershey's Chocolate World, with average daily rates ranging from $120-180 during peak summer months and $80-120 during off-season periods. Properties within 2-3 miles of Hersheypark typically achieve 65-75% occupancy rates annually, generating gross revenues of $35,000-55,000 for 2-3 bedroom homes, while expenses including mortgage, utilities, cleaning, maintenance, and Airbnb fees average $25,000-35,000 annually, resulting in net profit margins of 20-35%. Success factors include proximity to attractions (properties within walking distance command 25-30% premium rates), seasonal optimization with higher rates during summer and Halloween events, and amenities like pools, game rooms, or themed decorations that appeal to families visiting the area. A typical case study involves a 3-bedroom home purchased for $280,000 in 2019 near the park, generating $48,000 in annual revenue with $32,000 in expenses, yielding a 16% return on investment, though properties have benefited from increased demand post-2020 as vacation rental popularity surged, with some hosts reporting 40-50% revenue increases compared to pre-pandemic levels.

Airbnb investments in Hershey, Pennsylvania typically generate annual ROI of 12-18% due to the city's strong tourism driven by Hersheypark and Hershey's Chocolate World, with peak seasons during summer months and holiday periods. Cash-on-cash returns generally range from 8-14% annually, with properties near major attractions like Hersheypark (within 2-3 miles) commanding premium nightly rates of $150-250 during peak season and $80-120 during off-season. Most investors achieve profitability within 18-24 months, particularly for 3-4 bedroom properties that can accommodate families visiting the theme park, with average occupancy rates of 65-75% throughout the year. Properties purchased in the $200,000-350,000 range typically see the strongest returns, especially those with amenities like pools, game rooms, or proximity to Chocolate Avenue, as Hershey's consistent tourist traffic from companies like The Hershey Company's factory tours and seasonal events provides steady rental demand that has grown approximately 6-8% annually since 2019.

STRSearch is a national platform that specializes in identifying profitable short-term rental properties for investors, including in Hershey, Pennsylvania. Local real estate agents who focus on investment properties in the Hershey area include Keller Williams agents specializing in vacation rentals, RE/MAX agents with short-term rental expertise, and Coldwell Banker professionals who understand the local tourism market around Hersheypark. National services that can help investors in Hershey include AirDNA for market analysis and revenue projections, Mashvisor for property investment analytics, BiggerPockets for networking and deal sourcing, and Awning for short-term rental property identification. Local property management companies like Vacasa and RedAwning also provide services to help investors identify and manage profitable Airbnb properties in the Hershey market. Additionally, local investment groups and real estate meetups in the Harrisburg-Hershey area often connect investors with agents and services specializing in short-term rental properties, while companies like Roofstock and Arrived Homes occasionally feature Pennsylvania markets including areas near Hershey for vacation rental investments.