Is Scranton, Pennsylvania Good for Airbnb Investment?

To start an Airbnb in Scranton, Pennsylvania, begin by researching local regulations as the city requires short-term rental operators to obtain a business license and comply with zoning ordinances that typically allow rentals in residential areas with proper permits. Contact Scranton's Department of Licensing and Inspections at (570) 348-4139 to obtain necessary permits including a Certificate of Use and Occupancy, fire safety inspection, and business privilege license which costs approximately $50-100 annually. Find a suitable property in popular neighborhoods like North Scranton, Hill Section, or downtown areas near University of Scranton, ensuring it meets safety codes and has adequate parking. Furnish the space with essential amenities including Wi-Fi, cable TV, kitchen appliances, linens, and safety equipment like smoke detectors and fire extinguishers as required by Pennsylvania fire codes. Create your Airbnb listing with professional photos, competitive pricing (average $75-120/night in Scranton as of 2023), and highlight local attractions like Steamtown National Historic Site and proximity to Pocono Mountains. For ongoing management, establish cleaning protocols between guests, respond promptly to inquiries, maintain property insurance that covers short-term rentals, collect and remit Pennsylvania's 6% sales tax plus Lackawanna County's 2% hotel tax, and consider using property management companies like Vacasa or RedAwning if you prefer hands-off management, though local options in Scranton may be limited requiring self-management or regional services from nearby Wilkes-Barre or Philadelphia.

To identify profitable short-term rental properties in Scranton, Pennsylvania, focus on locations near Lackawanna College, University of Scranton, and downtown business district, as well as properties within 15 minutes of major employers like Geisinger Commonwealth School of Medicine and government offices. Target 2-4 bedroom properties built after 1950 with parking, updated kitchens and bathrooms, and reliable WiFi capability, avoiding properties requiring major structural work. Analyze pricing by researching comparable Airbnb listings in neighborhoods like Hill Section, North Scranton, and Green Ridge, aiming for properties under $150,000 that can generate $80-120 nightly rates with 60-70% occupancy. Study competition using AirDNA and Mashvisor to identify gaps in inventory, particularly focusing on business traveler accommodations and family-friendly options near universities. Utilize local resources including Scranton MLS data, city zoning maps to ensure STR compliance, Pennsylvania tourism data showing seasonal patterns, and connect with local property management companies like Northeast Property Management who understand Scranton's rental regulations and can provide market insights on neighborhoods with the highest rental demand and lowest regulatory restrictions.

To obtain an Airbnb/STR permit in Scranton, Pennsylvania, you must first contact the City of Scranton's Department of Licensing, Inspections and Permits located at 340 North Washington Avenue to apply for a Short-Term Rental License, which typically requires submitting a completed application form, proof of property ownership or lease agreement, certificate of occupancy, fire safety inspection certificate from the Scranton Fire Department, general liability insurance policy with minimum $1 million coverage naming the city as additional insured, floor plan of the rental unit, and contact information for a local property manager if you live more than 50 miles away. The application fee is approximately $150-200 annually, with additional inspection fees of around $75-100, and the process typically takes 4-6 weeks from submission to approval assuming all requirements are met. Scranton requires STR properties to maintain occupancy limits based on bedroom count (maximum 2 guests per bedroom plus 2 additional), provide adequate parking spaces, install smoke and carbon monoxide detectors in all sleeping areas, maintain the property in compliance with city housing codes, register with the Pennsylvania Department of Revenue for tax collection purposes, and ensure the property manager or owner can respond to issues within 30 minutes if located within city limits or maintain a local representative available 24/7 for properties managed remotely.

Short-term rentals (STRs) in Scranton, Pennsylvania operate in a complex legal environment where the city has not established comprehensive regulations specifically governing platforms like Airbnb and VRBO as of 2023. Currently, STRs exist in a regulatory gray area where they may be subject to existing zoning laws, business licensing requirements, and tax obligations, but lack specific municipal oversight or registration processes that many other Pennsylvania cities have implemented. Property owners operating STRs in residential zones may face potential zoning violations if their activities are deemed commercial use in residential areas, and the city has the authority to enforce existing ordinances regarding noise, parking, and occupancy limits. Recent years have seen increased scrutiny from city officials and residents concerned about housing availability and neighborhood character, with discussions about potential regulation occurring at city council meetings, though no formal STR ordinance has been enacted. The legal status remains uncertain, with enforcement typically complaint-driven rather than proactive, meaning operators face potential risks of citations or cease-and-desist orders if neighbors file complaints about noise, parking, or other issues related to transient occupancy in residential neighborhoods.

The best Airbnb investment areas in Scranton, Pennsylvania include Downtown Scranton, particularly near the Steamtown National Historic Site and Lackawanna Station, which attracts tourists interested in railroad history and serves as a transportation hub for business travelers. The Hill Section neighborhood offers affordable properties with proximity to the University of Scranton, providing steady demand from visiting families, prospective students, and university events. North Scranton, especially areas near Nay Aug Park, appeals to families and outdoor enthusiasts visiting the gorge and waterfall attractions. The Green Ridge section provides good value properties while maintaining easy access to downtown business district and medical facilities like Geisinger Community Medical Center, attracting medical tourists and business travelers. South Scranton offers authentic Italian-American neighborhood experiences and is close to venues that host cultural events and festivals. The West Side near the Toyota Pavilion at Montage Mountain (approximately 10 minutes away) captures overflow demand from concert-goers and summer events, while the East Mountain area provides scenic properties that appeal to visitors seeking a quieter retreat while remaining accessible to downtown attractions and The Office filming locations that draw fans of the popular TV series.

In Scranton, Pennsylvania, Airbnb hosts are subject to multiple lodging taxes including the Pennsylvania state hotel occupancy tax of 6%, Lackawanna County's hotel tax of 5%, and the City of Scranton's hotel occupancy tax of 5%, totaling approximately 16% in combined lodging taxes on short-term rental bookings. These taxes are typically collected by Airbnb directly from guests at the time of booking and remitted to the appropriate tax authorities on behalf of hosts, though hosts should verify their registration status with the Pennsylvania Department of Revenue and local tax collectors. The state tax applies to rentals of less than 30 consecutive days, while county and city taxes generally follow similar parameters for transient accommodations. Exemptions may include stays exceeding 30 days, certain government or nonprofit organization bookings, and rentals to permanent residents, though specific exemption criteria should be confirmed with local tax authorities. Hosts may need to obtain a Pennsylvania sales tax license and register with Lackawanna County and Scranton city tax offices, and while Airbnb's collection service simplifies compliance, hosts remain ultimately responsible for ensuring proper tax remittance and may need to file periodic returns even when using the platform's tax collection services.

Starting an Airbnb in Scranton, Pennsylvania requires approximately $180,000-220,000 in total initial investment. Property purchase costs average $140,000-160,000 based on median home prices in the area as of 2023. Furnishing a 2-3 bedroom property typically runs $15,000-25,000 including furniture, appliances, linens, and décor to create an attractive rental space. Initial setup costs including professional photography, listing creation, and basic renovations total around $3,000-5,000. Permits and fees vary but expect $500-1,500 for business licenses, short-term rental permits, and city registration requirements. Insurance premiums for short-term rental coverage average $2,000-3,000 annually, with the first year paid upfront. Utility setup and deposits for electricity, gas, water, internet, and cable services cost approximately $1,000-2,000 initially. First six months of operating expenses including utilities ($300-500/month), cleaning services ($75-100 per turnover), supplies and maintenance ($200-400/month), platform fees (3% of bookings), and property management software subscriptions total roughly $4,000-8,000, assuming moderate occupancy rates during the initial period.

Airbnb properties in Scranton, Pennsylvania typically generate average nightly rates of $75-$120, with occupancy rates around 60-70% annually, resulting in gross revenues of $16,000-$30,000 per year for well-positioned properties. Operating expenses including cleaning fees ($25-40 per turnover), utilities ($150-250 monthly), property management (10-20% of revenue), insurance ($800-1,200 annually), and maintenance costs typically consume 40-60% of gross revenue. Properties near University of Scranton and downtown areas perform best, with some hosts like those operating converted Victorian homes reporting net profit margins of 15-25% after mortgage payments. Success factors include proximity to Lackawanna College and University of Scranton for consistent student/parent bookings, competitive pricing against hotels like Hampton Inn ($89-129/night), professional photography, and targeting business travelers visiting companies like Geisinger Commonwealth School of Medicine. Properties in neighborhoods like North Scranton and Green Ridge show stronger performance than suburban locations, with hosts investing in amenities like high-speed internet and local guidebooks seeing 20-30% higher booking rates since 2019, though the market remains moderately competitive with approximately 200-300 active listings citywide.

Airbnb investments in Scranton, Pennsylvania typically generate annual ROI of 8-12% with cash-on-cash returns ranging from 6-10% based on current market conditions. Properties in downtown Scranton near the University of Scranton and business districts show stronger performance, with investors commonly achieving 10-14% annual returns when targeting corporate travelers and university visitors. The average timeframe to profitability is 18-24 months, considering initial setup costs, furnishing expenses, and market penetration time. Cash-on-cash returns tend to be higher for properties purchased under $150,000 with strong rental demand, particularly 2-3 bedroom units that can command $80-120 per night. Market data from 2023-2024 indicates that successful Scranton Airbnb operators achieve occupancy rates of 60-75% annually, with peak performance during university events, business conferences, and summer months when tourism increases in the Pocono Mountains region nearby.

STRSearch is a leading national platform that specializes in identifying profitable short-term rental properties for investors in Scranton, Pennsylvania. Local real estate agents like Keller Williams Scranton and RE/MAX Results serve the area with expertise in investment properties, while Coldwell Banker Timberland Properties has agents familiar with vacation rental opportunities in the region. National services include Awning (formerly RedAwning) which provides full-service Airbnb property management and acquisition assistance, Mashvisor for market analysis and property discovery, and AirDNA for short-term rental data analytics. Local property management companies such as Scranton Property Management and Northeast Property Solutions can assist with identifying investment opportunities, while national platforms like Roofstock and BiggerPockets connect investors with turnkey rental properties. Real estate investment firms like Berkshire Hathaway HomeServices and Century 21 have local offices that work with investors, and specialized STR consultants such as STR Wealth and Vacation Rental Formula provide market analysis and property acquisition services for the Scranton market.