The Lehigh Valley sits between two kinds of short-term rental demand. In Allentown, Bethlehem and Easton, guests come for hospitals, colleges, Musikfest, the casino and arena events. An hour north, the Poconos run on ski weekends, lake summers and fall color.
In short: LendingStreet finances Lehigh Valley and Pocono short-term rentals with DSCR loans that can qualify on projected nightly revenue on some programs. Loans start at $150,000, purchases go up to 80% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. Allentown, Bethlehem and the Pocono townships each regulate rentals under 30 days differently, so the zoning and permit status of the specific address decides whether a nightly-rental projection can be used.
The Lehigh Valley's three cities regulate short-term rentals mainly through zoning and rental licensing. Whether a whole home can be rented by the night depends on the zoning district, and some districts limit short-term rentals or tie them to owner occupancy. Allentown, Bethlehem and Easton also run rental registration or licensing programs with inspections, and those can apply to short-term units.
Rules have been changing across Pennsylvania as cities respond to neighbor complaints and housing pressure. Call the zoning office, read the current ordinance and get the answer in writing if you can. If nightly stays are not allowed, a long-term or 30-day furnished lease can still support a DSCR loan.
Many Lehigh Valley investors buy their nightly rentals north of Blue Mountain, where demand is built around recreation. Most Pocono townships allow short-term rentals but require a permit, inspections, occupancy limits and a local contact, and some HOA communities set their own rules or ban rentals entirely.
Inside the Valley, demand is varied rather than seasonal. Lehigh Valley Health Network and St. Luke's bring traveling nurses and patient families. Lehigh, Lafayette, Muhlenberg and Moravian bring parents for move-in, games and graduation. Musikfest fills Bethlehem for ten days each August, Wind Creek and the PPL Center draw event crowds, and the region's large warehouse and logistics base brings project managers and contractors for weeks at a time.
In the Poconos, revenue peaks in summer and on winter ski weekends, with a fall foliage shoulder. Spring mud season and early December are usually the slowest stretches.
On some programs, a purchase can qualify on a third-party projection of short-term revenue instead of a 12-month lease. The comps should match the property: a Lake Harmony chalet with other ski-area homes, a Bethlehem rowhome with other city rentals near the same draws. Programs differ in how they treat the projection and operating expenses.
If the projection is lower than you expected, our guide to low AirDNA projections explains structures that can still work, such as more down payment. For refinances, actual booking history can be used on some programs.
This example is illustrative and not a quote. An investor buys a four-bedroom home in Carbon County near Blue Mountain Resort for $335,000. A third-party projection estimates $52,800 in annual revenue, about $4,400 a month, with peaks on ski weekends and in summer.
At 75% LTV the loan is $251,250. Estimated principal and interest is about $1,757. Property and school taxes are budgeted at $410 a month and STR insurance at $195, for a total payment of about $2,362. On the full projection, DSCR is about 1.86x; at 20% less revenue, about 1.49x.
| Item | Full projection | Projection less 20% |
|---|---|---|
| Purchase price | $335,000 | $335,000 |
| Loan at 75% LTV | $251,250 | $251,250 |
| Estimated principal and interest | $1,757 | $1,757 |
| Taxes and insurance | $605 | $605 |
| Total monthly payment | $2,362 | $2,362 |
| Monthly revenue used | $4,400 | $3,520 |
| DSCR | 1.86x | 1.49x |
Pennsylvania's 6% hotel occupancy tax generally applies to stays under 30 days, and counties add their own hotel taxes. Booking platforms collect some of these taxes, but not always all of them, so confirm what you owe directly.
On the purchase, Pennsylvania charges realty transfer tax: 1% to the state plus local transfer tax, which in some Lehigh Valley municipalities is higher than the common 1% local share. Buyer and seller customarily split it, but contracts vary. Property taxes are set by county, municipality and school district, with school taxes usually the largest piece.
Mountain homes need snow removal, well and septic care in many cases, and protection against frozen pipes when vacant. Hot tubs and game rooms help bookings but raise insurance and maintenance. City rowhomes need parking plans and close attention to neighbors, since complaints are what usually drive new restrictions.
If you already run a permitted Pocono or Lehigh Valley rental with booking history, a DSCR refinance can use actual revenue on some programs. Cash-out goes up to 75% LTV, and seasoning varies by program. See our STR refinance guide and the Pennsylvania short-term rental page for statewide context.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address and projection through the form below or call (877) 298-1001.
It depends on the zoning district and the city's current rules, along with rental licensing and inspection requirements. Confirm with the city zoning office for the specific address before you rely on nightly income.
Demand there is built around recreation, and most townships allow short-term rentals with a permit. Each township and HOA has its own rules, so check the specific property.
For Bethlehem rentals, it is one of the strongest stretches of the year. The loan still needs to work on annual revenue, so do not build a projection around one event.
The state's 6% hotel occupancy tax generally applies to stays under 30 days, plus county hotel taxes. Confirm what your booking platform collects and what you must remit yourself.
They can contribute revenue. Bookings of 30 days or longer may fall under different local rules than nightly stays, which can help in city locations.
$150,000. Lower-priced Valley rowhomes may need a higher purchase price, a larger property or a blanket loan with other rentals to reach it.
No. The loan qualifies on the property's revenue and DSCR, with a 620 minimum credit score and LLC borrowers standard.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home must operate as a rental, not as a second home.
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