Pennsylvania is home to many thriving short-term rental markets, but identifying the top-performing cities can be overwhelming, especially when combing through data from countless locations across the state.
To simplify this process, we analyzed data from markets statewide and compiled a list of the top 10 cities for investors and landlords seeking potentially high-return rental properties in the coming year.
As always, we recommend thorough underwriting and analysis of any prospective property and a review of local short-term rental regulations before making any investment decisions.
How We Created This List
First, we looked at all Airbnb listings in Pennsylvania that met the following criteria as of December 2024:
- Average Rating: 4.8 stars and above
- Guest Review Count: Minimum of 10
- Average Daily Rate: $1 (minimum) to $2,000 (maximum)
- Occupancy Rate: 1% (minimum) to 99% (maximum)
- Property Size: 1 to 10 bedrooms
- Property Type: Entire homes
We did this to eliminate Airbnb listings from our analysis that fall outside of what we consider "realistic" situations. This left us with a total of 3,259 Airbnb listings across the state of Pennsylvania to work with.
Next, we grouped these listings by city and eliminated markets that didn't have at least 75 Airbnb listings meeting the above criteria. We took this step to avoid outlier cities we felt didn't have enough data to be considered at this current time. This left us with 10 cities in Pennsylvania to rank.
Then, we needed to arrive at a gross yield number for each of our remaining cities in order to create our rankings. We did this by taking the average annual Airbnb revenue for each city and combining it with the cities median property value (from Zillow as of November 2024) to calculate our gross yield for each city.
Finally, we ordered the cities by highest gross yield.
The Top 10 STR Markets in Pennsylvania
1. State College, PA
State College, PA is a vibrant hub for tourists, known for Penn State University, which draws sports enthusiasts year-round with its Nittany Lions games and the iconic Beaver Stadium. Travelers flock here for unique events like the Central Pennsylvania Festival of the Arts. This dynamic short-term rental market offers significant rental income potential for real estate investors. With attractions like the Arboretum at Penn State, it's an appealing destination for vacation rentals, promising a good return on investment for Airbnb hosts.
Key STR Metrics:
- Average Gross Yield: 21.1%
- Average Property Value: $541,070 (as of November 2024)
- Average Annual Revenue: $114,047 (past 12 months)
- Average Occupancy Rate: 45% (past 12 months)
- Qualifying Airbnbs: 193 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 105%
Find Airbnbs For Sale in State College, PA →
2. Jim Thorpe, PA
Jim Thorpe, PA, a gem in the Pocono Mountains, is a prime destination for real estate investors looking to tap into the short-term rental market. Known for its Victorian architecture and charming streets, this "Switzerland of America" attracts tourists year-round. Key attractions include the Lehigh Gorge Scenic Railway and the Asa Packer Mansion. Outdoor enthusiasts enjoy hiking, biking, and white-water rafting, while special events like the Fall Foliage Festival draw crowds. With consistent tourism, vacation rentals here promise good return and steady rental income for Airbnb hosts and investors.
Key STR Metrics:
- Average Gross Yield: 15.5%
- Average Property Value: $360,483 (as of November 2024)
- Average Annual Revenue: $55,940 (past 12 months)
- Average Occupancy Rate: 38% (past 12 months)
- Qualifying Airbnbs: 131 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 168%
Find Airbnbs For Sale in Jim Thorpe, PA →
3. Erie, PA
Erie, PA, a rising gem for short-term rental properties, boasts a thriving tourism scene with attractions like Presque Isle State Park's beaches and trails, and the bustling Bayfront District. Home to the Erie SeaWolves baseball team and vibrant annual events like Discover Presque Isle Days, Erie draws tourists year-round. Its appealing vacation homes offer a promising real estate market for investors seeking good return and cash flow. Real estate investors will find Erie among the best places for rental income and airbnb hosting opportunities.
Key STR Metrics:
- Average Gross Yield: 14.6%
- Average Property Value: $293,795 (as of November 2024)
- Average Annual Revenue: $42,948 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 153 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 96%
Find Airbnbs For Sale in Erie, PA →
4. East Stroudsburg, PA
East Stroudsburg, PA, nestled in the Pocono Mountains, is a thriving hot spot for real estate investors targeting the short-term rental market. Known for attractions like the Delaware Water Gap and Bushkill Falls, this scenic area attracts nature lovers and adventure seekers alike. With events like the Pocono Mountain Carnival and close proximity to Shawnee Mountain Ski Area, tourists flock here year-round, making it one of the best places for vacation rentals. With a promising housing market, it offers good return and consistent cash flow for airbnb hosts catering to eager visitors.
Key STR Metrics:
- Average Gross Yield: 12.5%
- Average Property Value: $398,332 (as of November 2024)
- Average Annual Revenue: $49,799 (past 12 months)
- Average Occupancy Rate: 30% (past 12 months)
- Qualifying Airbnbs: 218 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 70%
Find Airbnbs For Sale in East Stroudsburg, PA →
5. Harrisburg, PA
Harrisburg, PA, is a hidden gem for real estate investors looking to tap into the lucrative short-term rental market. Known for attractions like the Pennsylvania State Capitol and the National Civil War Museum, it offers a rich historical experience. Sports fans relish visits to see the Harrisburg Senators play, while special events like the annual Kipona Festival attract tourists year-round. With strong tourism appeal, investing in vacation homes here could yield a good return and steady cash flow, making Harrisburg one of the best places for short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 11.1%
- Average Property Value: $366,720 (as of November 2024)
- Average Annual Revenue: $40,534 (past 12 months)
- Average Occupancy Rate: 39% (past 12 months)
- Qualifying Airbnbs: 100 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 80%
Find Airbnbs For Sale in Harrisburg, PA →
6. Philadelphia, PA
Philadelphia, PA, a vibrant city rich in history and culture, presents a lucrative short-term rental market for real estate investors targeting vacation rentals. Known for iconic attractions like the Liberty Bell and Independence Hall, and home to the beloved Philadelphia Eagles and 76ers, the city regularly attracts tourists and guests. Annual events such as the Philadelphia International Festival of the Arts further boost tourism. With a strong housing market, vacation homes here promise good returns and consistent cash flow for investors in short-term rental properties.
Key STR Metrics:
- Average Gross Yield: 10.9%
- Average Property Value: $377,611 (as of November 2024)
- Average Annual Revenue: $40,975 (past 12 months)
- Average Occupancy Rate: 37% (past 12 months)
- Qualifying Airbnbs: 973 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 102%
Find Airbnbs For Sale in Philadelphia, PA →
7. Tannersville, PA
Tannersville, PA offers a wealth of attractions making it one of the best places for short-term rental properties. Known for Camelback Mountain Resort, visitors enjoy skiing in winter and water park fun in summer. The region's real estate market holds great potential for real estate investors seeking vacation homes or Airbnb opportunities. With vibrant tourism boosted by events such as Tannersville Cranberry Bog Tours and proximity to Pocono Raceway, investors can expect good returns and solid rental income in this thriving short-term rental market.
Key STR Metrics:
- Average Gross Yield: 10.2%
- Average Property Value: $424,845 (as of November 2024)
- Average Annual Revenue: $43,369 (past 12 months)
- Average Occupancy Rate: 24% (past 12 months)
- Qualifying Airbnbs: 126 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 86%
Find Airbnbs For Sale in Tannersville, PA →
8. Pocono Lake, PA
Pocono Lake, PA, is a prime spot for short-term rental properties, offering real estate investors attractive returns. Known for its scenic beauty and vibrant tourism, the area boasts attractions like the Pocono Raceway, Jack Frost Ski Resort, and various state parks perfect for hiking and skiing. Popular seasonal events and sports activities draw visitors year-round, creating continuous demand for vacation rentals. This strong short-term rental market makes Pocono Lake an ideal location for real estate investing, providing solid rental income for vacation home investors.
Key STR Metrics:
- Average Gross Yield: 9.4%
- Average Property Value: $379,463 (as of November 2024)
- Average Annual Revenue: $35,557 (past 12 months)
- Average Occupancy Rate: 33% (past 12 months)
- Qualifying Airbnbs: 262 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 95%
Find Airbnbs For Sale in Pocono Lake, PA →
9. Champion, PA
Champion, PA, nestled in the picturesque Laurel Highlands, is a gem for tourists seeking a blend of adventure and relaxation. Known for the Seven Springs Mountain Resort, it's a hotspot for skiing, snowboarding, and golfing, appealing to year-round visitors. The vibrant short-term rental market offers promising opportunities for real estate investors to tap into lucrative rental income from vacation homes and Airbnbs. Special events like the Autumnfest draw crowds, making it one of the best places for short-term rental properties that promise good returns.
Key STR Metrics:
- Average Gross Yield: 9.3%
- Average Property Value: $619,066 (as of November 2024)
- Average Annual Revenue: $57,803 (past 12 months)
- Average Occupancy Rate: 27% (past 12 months)
- Qualifying Airbnbs: 107 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 35%
Find Airbnbs For Sale in Champion, PA →
10. Pittsburgh, PA
Pittsburgh, PA, is a top destination for real estate investors exploring the short-term rental market in 2024. With vibrant attractions like the Andy Warhol Museum, and PNC Park, home of the Pittsburgh Pirates, vacation rentals promise steady visitor interest. The city's thriving culture, sports events like Steelers games and annual events such as the Three Rivers Arts Festival enhance appeal. Investing in Pittsburgh's housing market could yield a good return, as tourists flock here, ensuring lucrative rental income for Airbnb hosts and vacation home owners.
Key STR Metrics:
- Average Gross Yield: 9.3%
- Average Property Value: $399,810 (as of November 2024)
- Average Annual Revenue: $37,032 (past 12 months)
- Average Occupancy Rate: 42% (past 12 months)
- Qualifying Airbnbs: 996 (as of December 2024)
- Year-Over-Year Growth in Airbnbs: 100%
