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By Robin Simon, President, Harpoon Capital · About · LinkedIn · Author, The Book on DSCR Loans (Available on Amazon)
The best Pennsylvania markets for real estate investors in 2027 pair entry prices in the low-to-mid $200,000s in Philadelphia and Pittsburgh with strong short-term rental potential, led by a 94 AirDNA score in Lancaster and $65,657 in average annual STR revenue in East Stroudsburg. Pennsylvania pairs two major East Coast metros with a Lehigh Valley corridor and a genuinely distinct vacation region in the Pocono Mountains. There's a healthcare and tech hub in Pittsburgh, a historic Amish Country market in Lancaster, a Pocono gateway town in East Stroudsburg, a Lehigh Valley market in Allentown, the state's largest city in Philadelphia, and the broader Poconos vacation corridor around Pocono Lake and Tobyhanna. Home prices run up to the high $300,000s in Lancaster County (Zillow, August 2026), and short-term rental regulation varies sharply from one municipality to the next. Investors buying here typically finance with Pennsylvania DSCR loans, which are qualified primarily based on the property rather than the borrower's personal income.
This breakdown uses market data collected as of October 2026, the most current snapshot available heading into next year's buying season. If you're evaluating a purchase in the final months of 2026, keep in mind that your first full year of rental income, appreciation, or short-term rental revenue lands in 2027 regardless of when you close. A deal you underwrite today is already a 2027 investing decision, just one made with the freshest data available right now.
Pennsylvania has no statewide short-term rental license and no preemption statute, so cities and townships set their own rules entirely independently. Philadelphia sorts every STR into one of two categories, owner-occupied Limited Lodging or non-owner-occupied Visitor Accommodations, and if the latter isn't a permitted use in a given zoning district, the only path in is a Zoning Board appeal with a public hearing, a real barrier rather than a formality. In the Poconos, by contrast, rules are set township by township: Tobyhanna Township, which covers Pocono Lake, requires an STR permit but places no cap on how many it issues, while East Stroudsburg's borough license costs $600 a year per unit and comes with an annual inspection. Several bills that would standardize STR rules statewide are sitting in the legislature as of mid-2026, but none has passed.
Below, we break down six Pennsylvania markets worth watching, using current data from Zillow, Redfin, BiggerPockets, and AirDNA.
Note: Home price appreciation and rent-growth figures below come from Zillow's Home Value Index (ZHVI), Redfin's median sale price data, and BiggerPockets' Market Finder, which use different methodologies and can vary from one another. We've cited both where available so you can compare. BiggerPockets covers the Poconos only through its East Stroudsburg (Monroe County) metro page, so the Poconos section below relies on Zillow and AirDNA's separate Pocono Lake and Tobyhanna submarket data instead.
A genuinely affordable healthcare and tech economy with a strong AirDNA score
Pittsburgh has spent the past two decades transforming from an industrial city into a healthcare and technology hub, and it remains one of the most affordable major metros in this article.
UPMC and Carnegie Mellon University anchor a healthcare, education, and technology economy that's fundamentally reshaped Pittsburgh's identity since its industrial era ended, and the affordability that resulted is still working in investors' favor. Population growth here is essentially flat, down slightly at -0.16% year-over-year, so this is a market where the investment case rests on price and cash flow rather than a population growth story.
Pittsburgh posts a strong AirDNA score of 80/100, with a strong Investability score of 87 and an excellent Seasonality score of 85, though Revenue Growth (56) is more middling. Annual revenue per listing averages $32,987 (up 4.8% year-over-year), with an average daily rate of $171.23 (up 9.3%) and occupancy of 58% (down 2.2%). Total active listings sit at 3,316, up a modest 3.5% over the past year.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Pittsburgh and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · BiggerPockets Market Finder↗ · AirDNA↗
Investor Takeaway: Pittsburgh's affordability score is the strongest in this article, and the ADR growth of more than 9% suggests real pricing power for existing STR operators. Flat population growth means this is a cash-flow play more than a growth story, and that's a perfectly reasonable thesis at this price point.
One of the strongest AirDNA scores in this article, backed by tourism and diversification
Lancaster combines Pennsylvania Dutch Country tourism with a genuinely diversified healthcare and manufacturing economy, and it posts one of the strongest AirDNA scores in this entire article as a result.
Lancaster General Health and Franklin & Marshall College anchor a healthcare, education, and manufacturing base, while the region's Pennsylvania Dutch Country tourism draw supports a genuinely active STR market on top of it. Confirm which geography a listing's numbers reflect before comparing it to another market, since city rowhomes and outlying suburban builds price quite differently here.
Lancaster posts an excellent AirDNA score of 94/100, with a near-perfect Rental Demand score of 94 and a strong Revenue Growth score of 82. Annual revenue per listing averages $39,143 (up 5.4% year-over-year), with an average daily rate of $209.02 (up 6.3%) and occupancy of 56% (down 0.5%). Total active listings sit at 1,464, up a modest 2.4% over the past year.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Lancaster and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · Redfin Market Data↗ · BiggerPockets Market Finder↗ · AirDNA↗
Investor Takeaway: Lancaster combines genuine tourism demand with a diversified local economy, a combination that shows up clearly in a 94 AirDNA score. The gap between city and county pricing is real here, so confirm which geography a listing's numbers actually reflect before you compare it to another market.
Thinking About One of These Markets?
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A Pocono gateway market with the fastest revenue growth on this list
East Stroudsburg sits at the gateway to the Pocono Mountains, close enough to New York City and Philadelphia to draw both commuters and vacationers, and it posts the fastest short-term rental revenue growth of any market in this entire article.
East Stroudsburg University anchors steady off-campus housing demand, while the town's proximity to both New York City and Philadelphia has made it an increasingly popular destination for commuters and vacation-home buyers alike. Population growth here is slightly negative (-0.16% year-over-year), so like Pittsburgh, this market's case leans more on cash flow and STR fundamentals than a growth story. On the STR side, BNBCalc reports that the borough requires an STR license that costs $600 a year per unit and comes with an annual inspection, plus a zoning permit, $500,000 in liability insurance and registration for the state's 6% and Monroe County's 3% hotel taxes.
East Stroudsburg posts a submarket score of 81/100, with a near-perfect Investability score of 99 and an excellent Revenue Growth score of 88, though Rental Demand (47) is comparatively soft. Annual revenue per listing averages $65,657, up a striking 18.8% year-over-year, the fastest revenue growth of any market in this article, and the highest revenue per listing. Average daily rate is $419.16 (up 11.8%), also among the highest here. Occupancy sits at 48% (up 5.2%). Total active listings sit at 657, down a sharp 22.1% over the past year, the steepest listing decline in this article, revenue and rates climbing sharply even as supply contracts.
Financing note: East Stroudsburg deals often qualify on TTM actuals or STR Narrative revenue projections given the strong seasonal tourism base, with rural property provisions available for cabin and mountain addresses that don't fit a standard suburban file.
Sources: BiggerPockets Market Finder↗ · BNBCalc East Stroudsburg STR Guide↗ · AirDNA↗
Investor Takeaway: A 18.8% jump in STR revenue alongside a 22.1% drop in active listings is one of the clearest supply-demand signals in this article. This looks like a market where remaining operators are capturing meaningfully more revenue per listing as competition thins out.
Lehigh Valley affordability with a near-perfect Revenue Growth score
Allentown anchors the Lehigh Valley, a corridor that's benefited from steady spillover demand from both Philadelphia and New York, and its STR market is posting one of the strongest Revenue Growth scores in this article.
The Lehigh Valley's proximity to major highways and transportation hubs makes it convenient for commuters priced out of Philadelphia and New York, and downtown Allentown's Neighborhood Improvement Zone has directed significant investment toward the urban core over the past decade. The metro's 873,603 residents and diversified commercial base give Allentown a broader economic footprint than its city-proper size suggests.
Allentown posts a strong submarket score of 88/100, with a near-perfect Revenue Growth score of 93 and a strong Seasonality score of 88, though Rental Demand (54) is more middling. Annual revenue per listing averages $25,063 (up 2.7% year-over-year), with an average daily rate of $126.70 (down 3.5%) and occupancy of 59% (up 5.6%). Total active listings sit at 199, down 11.9% over the past year, a genuinely thin market with limited comparable data.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Allentown and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · BiggerPockets Market Finder↗ · AirDNA↗
Investor Takeaway: Allentown's near-perfect Revenue Growth score is a genuine signal, but the thin 199-listing base means any single new competitor could meaningfully shift the market. This looks like a market to enter early rather than one with deep, established comparables.
Scale and strong STR fundamentals, gated behind a real zoning appeal process
Philadelphia is Pennsylvania's largest city, and its STR fundamentals are genuinely strong, but the path to operating a non-owner-occupied rental here runs through a real zoning process rather than a simple permit application.
The University of Pennsylvania and Comcast anchor a healthcare, education, and finance economy layered on top of one of the East Coast's largest media and corporate presences. Philadelphia sorts every STR into one of two categories: owner-occupied Limited Lodging, which is genuinely straightforward to license, or non-owner-occupied Visitor Accommodations, which must be a permitted use in that property's zoning district. If it isn't, the only path forward is an appeal to the Zoning Board of Adjustment, complete with a posted notice, a meeting with the neighborhood's Registered Community Organization, and a public hearing where neighbors can formally object. A June 2026 City Controller's report found that of 3,734 tracked STR listings, 1,327 carried licenses that were inactive, expired, or the wrong type entirely, a real signal about how much enforcement risk sits underneath the city's numbers.
Philadelphia posts a strong AirDNA score of 86/100, with an excellent Revenue Growth score of 96 and Seasonality score of 89, though Investability (62) and Regulation (59) are the softest scores, likely reflecting the zoning friction described above. Annual revenue per listing averages $31,662 (up 8.0% year-over-year), with an average daily rate of $158.34 (up 10.5%) and occupancy of 60% (down 0.9%). Total active listings sit at 7,982, down 1.1% over the past year.
Financing note: Harpoon Capital offers industry leading DSCR Loans for properties in Philadelphia and all throughout the market area. Check out our full DSCR Loans Program here, or if you want a quote on what terms look like today, fill out this two-minute form!
Sources: Zillow Home Value Index↗ · BiggerPockets Market Finder↗ · BNBCalc Philadelphia STR Guide↗ · Philadelphia City Controller↗ · AirDNA↗
Investor Takeaway: Philadelphia's revenue and rate growth are both excellent, but its Investability score of 62, the lowest of the six markets, and a Regulation score of 59 are the market telling you something real about zoning friction. Confirm a specific property's zoning designation before assuming you can run it as a non-owner-occupied whole-unit rental.
The second-highest STR revenue on this list, under township-by-township permits
Pocono Lake and Tobyhanna anchor the broader Pocono Mountains vacation corridor, and this market generates the second-highest short-term rental revenue in this article, behind only East Stroudsburg, under township-by-township STR permits.
Unlike Philadelphia's zoning-gated system, Pocono-area rules are set township by township: Tobyhanna Township, which covers Pocono Lake, requires an STR permit under its own ordinance but has set no limit on the number of permits, while East Stroudsburg's borough license costs $600 a year per unit and includes an annual inspection. There's no county-wide or state-wide standardization, so a specific township's requirements should always be confirmed directly rather than assumed to match a neighboring town's rules. Several bills that would create a more standardized statewide framework, including House Bill 2303's proposed countywide registry system, remain stuck in committee as of mid-2026, so the current township-by-township system is likely to persist for a while longer.
The broader Pocono Mountains market posts a score of 82/100, with a perfect Investability score of 100 and a strong Revenue Growth score of 93, though Rental Demand (45) is comparatively soft. Annual revenue per listing averages $56,146 (up 9.1% year-over-year), with an average daily rate of $405.49 (up 7.0%) and occupancy of 43% (up 2.2%). Within the region, Pocono Lake specifically posts a strong 85 submarket score with $58,972 in average revenue (up 11.5%) and a $431.19 average daily rate, the highest of any submarket in this article, while Tobyhanna posts an 81 score with $51,093 in revenue and a $389.02 average daily rate. Total active listings across the broader Pocono Mtns market sit at 6,406, down 3.0% over the past year.
Financing note: Poconos deals often qualify on TTM actuals or STR Narrative revenue projections given the strong seasonal tourism base, with rural property provisions available for cabin and mountain addresses that don't fit a standard suburban file.
Sources: Zillow Home Value Index↗ · Tobyhanna Township STR Page↗ · AirDNA↗
Investor Takeaway: This is the second-highest-revenue market in the article, and its township permits are meaningfully less of a barrier than Philadelphia's zoning appeals, though they vary from one township to the next. Pocono Lake's slight price dip on Zillow could be a real entry point, even as STR fundamentals stay genuinely strong.
| MARKET | AIRDNA SCORE |
ANNUAL REVENUE |
AVG. DAILY RATE |
OCCUPANCY | YOY LISTING GROWTH |
|---|---|---|---|---|---|
| Lancaster | 94 | $39,143 (+5.4%) |
$209.02 (+6.3%) |
56% (-0.5%) | +2.4% (1,464 listings) |
| Allentown | 88 | $25,063 (+2.7%) |
$126.70 (-3.5%) |
59% (+5.6%) | -11.9% (199 listings) |
| Philadelphia | 86 | $31,662 (+8.0%) |
$158.34 (+10.5%) |
60% (-0.9%) | -1.1% (7,982 listings) |
| Pittsburgh | 80 | $32,987 (+4.8%) |
$171.23 (+9.3%) |
58% (-2.2%) | +3.5% (3,316 listings) |
| East Stroudsburg | 81 | $65,657 (+18.8%) |
$419.16 (+11.8%) |
48% (+5.2%) | -22.1% (657 listings) |
| The Poconos | 82 | $56,146 (+9.1%) |
$405.49 (+7.0%) |
43% (+2.2%) | -3.0% (6,406 listings) |
Source: AirDNA, current as of 2026. Scores and figures reflect each market or submarket as defined by AirDNA and may not correspond 1:1 with city or county boundaries. As of October 2026
A few patterns stand out. East Stroudsburg and the Poconos generate by far the highest dollar revenue in the state, both benefiting from the same Pocono Mountains tourism base. East Stroudsburg's 22.1% listing decline alongside a 18.8% revenue jump is the sharpest supply-demand signal in this entire article. Philadelphia's comparatively low Investability score, despite strong revenue and rate growth, is the clearest numeric evidence of its zoning friction among all six markets.
Pennsylvania's real estate landscape offers a strategy for nearly every type of investor:
Market-level data is a starting point, not a substitute for underwriting the specific property, neighborhood, and rental strategy in front of you. Pennsylvania leaves STR regulation entirely to individual municipalities, and Philadelphia's zoning-based system is meaningfully more restrictive than the township permits found in the Poconos. Confirm what's legal at your specific address before you close.
If you are ready to invest in one of these markets, start with our Pennsylvania DSCR loans page.
Sources: Zillow Home Value Index & Rental data, Redfin housing market data, BiggerPockets Market Finder, AirDNA market and submarket data (airdna.co), BNBCalc Pennsylvania, Philadelphia and East Stroudsburg STR guides, the Philadelphia City Controller and Tobyhanna Township. Data collected as of October 2026, ahead of the 2027 investing season.
It varies more by city than in most states. Pennsylvania has no rent control and no statewide short-term rental license or preemption statute, so every municipality sets its own STR rules. Philadelphia's zoning-based system is considerably more restrictive than the township permits found in the Poconos, so confirm local rules before you buy with a short-term rental strategy in mind.
No. Out-of-state and first-time investors can buy investment property in Pennsylvania without any license. A DSCR loan qualifies you primarily based on the property itself rather than your personal income or professional credentials, which is part of why it's such a common financing tool for out-of-state buyers.
A DSCR (Debt Service Coverage Ratio) loan qualifies a borrower primarily based on the property (its rent, value and location) relative to its mortgage payment, rather than the borrower's personal income or tax returns. If the property's projected or actual rent covers the mortgage payment (a DSCR of 1.00x or higher), it's generally easier to qualify, and Harpoon Capital also offers options for deals below 1.00x.
It depends entirely on zoning. Philadelphia requires non-owner-occupied short-term rentals to fall under a use called Visitor Accommodations, which must be a permitted use in that property's specific zoning district. If it isn't, your only path forward is an appeal to the Zoning Board of Adjustment, including a public hearing where neighbors can object, so confirm zoning before buying with this strategy in mind.
Harpoon Capital's DSCR loan program allows as little as 15% down on qualifying purchases, up to 85% LTV, with cash-out refinances available up to 80% LTV. Exact terms depend on the property, credit profile, and DSCR ratio. Fill out our DSCR Loan Application to see specific numbers for your deal.
Ready to Run the Numbers on a Pennsylvania Deal?
Whether you're eyeing Lancaster's strong fundamentals or a cabin deal in the Poconos, get a same-day rate and terms with our two-minute DSCR quote form, or explore the full Pennsylvania DSCR Loans Program to see how we qualify the property, not just the borrower.
This article is for informational purposes only and does not constitute investment, legal, or financial advice. Harpoon Capital encourages investors to conduct independent due diligence before making any real estate investment decision.
