Most Scranton investors who want nightly income end up looking 45 minutes east or southeast, in the Pocono lake communities and ski towns. The city itself has steady visitor demand, but the deeper vacation market sits in Wayne, Pike, Monroe and Carbon counties.
In short: LendingStreet finances short-term rentals in Scranton and the surrounding Pocono region with DSCR loans that can qualify on projected nightly rental revenue on some programs, instead of a 12-month lease. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, the minimum credit score is 620 and LLC borrowers are standard. Before you buy, confirm that the city, township or HOA allows non-owner-occupied nightly rentals at that address.
Scranton is not a classic vacation town, but it has real nightly demand: families visiting the University of Scranton and nearby Marywood University in Dunmore, patients and staff tied to the city's hospitals, concerts and minor league games at Montage Mountain and PNC Field in Moosic, and visitors to Steamtown National Historic Site downtown.
The city runs its own rental registration and licensing process for rental units, and zoning decides whether a dwelling can be used for transient stays. Rules can change, so check with the city's licensing and zoning offices before you rely on nightly income. Many Scranton STR operators also rent furnished units for 30 days or longer to traveling medical staff, which falls under different rules than nightly stays.
The region's strongest nightly markets are the Pocono lake and ski areas. Each is governed by its own township, and many homes sit inside private communities with their own leasing rules.
| Area | Main draw | What to check |
|---|---|---|
| Lake Wallenpaupack (Wayne and Pike counties) | Summer boating, fall foliage | Township STR ordinance, HOA rules in lake communities |
| Tobyhanna, Coolbaugh and Pocono townships (Monroe County) | Camelback, Kalahari, lake communities | STR permits, occupancy limits, inspections |
| Lake Harmony and Split Rock area (Carbon County) | Ski resorts, Hickory Run State Park | Township permit and community association rules |
| Montage Mountain and Moosic | Skiing, concerts, ballpark | Borough zoning and rental registration |
| Lake Ariel and Hamlin area | Smaller lakes, Elk Mountain skiing | Township zoning and private lake association rules |
Several Monroe County townships require a short-term rental permit, a safety inspection, posted occupancy limits and a local contact who can respond to complaints. Wayne and Pike County townships vary, and some leave it to zoning. Private communities such as gated lake associations may ban rentals under a set number of days, charge rental registration fees or limit guest vehicles.
Pennsylvania applies a state hotel occupancy tax to stays of fewer than 30 consecutive days, and many counties add their own hotel tax. Booking platforms often collect some of these taxes, but not always all of them, so confirm what you must remit yourself.
Pocono revenue is tied to the calendar. Summer is the strongest stretch for lake homes, ski homes peak from late December through February, and fall foliage weekends fill quickly. March, April and November are the slow months, when occupancy and nightly prices drop.
A home that can draw both seasons, such as a lake community house near a ski area, tends to produce steadier revenue than a single-season property. When you review a revenue projection, look at the month-by-month numbers, not just the annual total, and make sure you can carry the payment through the quiet months.
On some programs, the DSCR is calculated from a third-party projection of short-term rental income for the property, rather than a long-term lease. Programs differ in how they adjust that figure for management, cleaning and vacancy. If the projection comes in lower than you expected, our guide to low STR revenue projections explains common next steps.
If you already own and operate the property, actual booking history can support the numbers on a refinance. The standard minimum DSCR is 1.0x, and sub-1.0 programs exist for files that make sense on other grounds.
This example is illustrative and not a quote. An investor buys a four-bedroom home in a lake community near Lake Wallenpaupack for $335,000. The township permits short-term rentals and the HOA allows them with registration. A third-party projection estimates $44,000 a year in gross rental revenue, or about $3,667 a month.
At 75% LTV the loan is $251,250. Estimated principal and interest on a 30-year loan is about $1,757 a month. Taxes are about $460, insurance $165 and HOA dues $95, for a total payment near $2,477. If the program reduces projected revenue by 20% for operating costs, qualifying income is about $2,933 and the DSCR is about 1.18x.
| Item | Amount |
|---|---|
| Purchase price | $335,000 |
| Loan at 75% LTV | $251,250 |
| Estimated principal and interest | $1,757 |
| Taxes, insurance and HOA | $720 |
| Total monthly payment | $2,477 |
| Projected gross revenue per month | $3,667 |
| Qualifying income after 20% reduction | $2,933 |
| DSCR | About 1.18x |
A Pocono STR needs a policy written for short-term rental use, not a standard landlord policy. Ask about liability limits, coverage for frozen pipes and winter vacancy, and whether the carrier requires a monitored thermostat or water shutoff. Homes near lakes and creeks may also sit in mapped flood zones.
Many Scranton-area owners live within an hour of their rental, but a local cleaner, snow removal contract and backup handyman still matter. Budget for those costs when you check the projection.
Include the address, purchase price or estimated value, the township and community rules that allow nightly rentals, any revenue projection or booking history, and your target loan amount. For the statewide picture, see our Pennsylvania short-term rental loan page.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address or property list, the price or value, the rents and your target leverage through the form below, or call (877) 298-1001, and the financing team will run the numbers and come back with options.
Possibly. The city requires rental registration and zoning decides whether transient use is allowed at an address. Check with the city before you buy, and plan around 30-day furnished stays if nightly use is not permitted.
Several Monroe County townships, including areas around Tobyhanna and Pocono townships, have permit programs. Rules change often and differ by township, so read the current ordinance for the exact address.
On some programs, yes. The ratio can be based on a third-party short-term revenue projection rather than a long-term lease, adjusted by the program for operating costs.
Then the property cannot qualify as an STR, and the loan would be underwritten on long-term rent instead. Always get the association rules before you sign.
Pennsylvania applies a state hotel occupancy tax to stays under 30 days, and many counties add a local hotel tax. Confirm what your booking platform collects and what you must file yourself.
DSCR loans start at $150,000 with no stated maximum and go up to 80% LTV on a purchase. The rent projection must support the payment at the ratio the program requires.
Yes. Booking history can support the refinance, and cash-out goes up to 75% LTV. See our STR DSCR refinance page for details.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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