Poconos Airbnb Investor Guide to Township Zoning, HOAs, & More
- Jeremiah Noll
- Jan 11
- 7 min read
Here's our comprehensive overview of the most active Airbnb markets in the Western Poconos: zoning, permitting, HOA trends, and investor takeaways.
Kidder Township (Lake Harmony Area): The Historical Core of Airbnbs
County: Carbon
Vibe: Ski-town energy meets summer lake culture
Investor Appeal: High
Zoning & Enforcement: Friendly and structured
Kidder Township is widely considered the capital of short-term rentals in the Poconos. Centered around Lake Harmony and easily accessible off the I-80/I-476 junction, it benefits from year-round demand. Guests come for winter skiing at Jack Frost and Big Boulder, powerboating on Lake Harmony in the summer, and the walkable dining and nightlife scene.
Permitting is straightforward. Airbnbs require a Certificate of Occupancy that must be renewed, and properties must meet basic habitability and safety standards. Airbnbs are permitted township-wide if they meet these requirements.
Investor insights: Kidder has a long history of Airbnb acceptance, making it one of the lowest-risk markets. Multiple property types (lakefronts, ski chalets, condos) perform well with broad guest appeal.
Penn Forest Township: HOA-Centric, High Demand, Low Resistance
County: Carbon
Vibe: Wooded neighborhoods with turnpike access
Investor Appeal: High
Zoning & Enforcement: Airbnb-friendly, HOA-driven
Penn Forest Township regulates Airbnbs but is generally welcoming because of the local economy’s reliance on rental income. HOAs play a significant role here.
Notable HOAs:
Towamensing Trails: One of the most active Airbnb communities in the region. Large inventory, lake access, and amenities draw consistent bookings.
Indian Mountain Lakes (IML): Spans both Carbon and Monroe counties. Airbnbs are allowed with annual HOA registration, but enforcement has tightened in recent years.
Investor insights: High-volume market with less township bureaucracy. Choose your HOA carefully because each community has unique rules on fire pits, gates, and guest restrictions.
Tunkhannock Township: Low Friction, Under-the-Radar
County: Monroe
Vibe: Back roads, cabins, and quiet lake communities
Investor Appeal: Moderate to high
Zoning & Enforcement: Lax with some gray areas
Tunkhannock Township is more permissive than others but also less clearly defined. Airbnb permits are required, and the process is typically fair if your paperwork and property meet standards.
Notable HOAs:
Briar Crest Woods: Airbnbs allowed with minimal HOA oversight. Popular with guests seeking a quieter stay.
Indian Mountain Lakes: This HOA straddles the county line, with Tunkhannock managing the Monroe County side.
Investor insights: Lower acquisition costs and simpler processes make Tunkhannock attractive for first-time or budget-conscious investors. Avoid larger HOAs if you want more control.
Tobyhanna Township: High Competition, Permit Cap Challenges
County: Monroe
Vibe: Resort-heavy with established Airbnb culture
Investor Appeal: High but capped
Zoning & Enforcement: Strict 12% cap, waitlist applies
Tobyhanna is one of the most active Airbnb markets in the Poconos. Demand is high, but the township limits Airbnbs to 12% of all residential units. When the cap is reached, new applicants go on a waitlist until a current permit is surrendered. For the last 2 years I do not think they reached their cap at all.
Permits are valid for one year and require local contact information, occupancy limits, inspections, and quick responses to complaints.
Notable HOAs:
Camelot Forest: Airbnbs allowed with a simple process and no extra registration fees.
Locust Lake Village: Moderate restrictions but generally Airbnb-friendly.
Greenwood Acres: Quiet community backing onto state game lands. Some homes have a party-house reputation, so enforcement is watchful.
Investor insights: High demand and limited supply support strong bookings. Be prepared to wait for a permit if the cap is maxed out.
Coolbaugh Township: Stable Ordinance, Infrastructure Challenges
County: Monroe
Vibe: Family-focused communities with higher density
Investor Appeal: Moderate
Zoning & Enforcement: Airbnbs permitted under Monroe County’s model ordinance
Coolbaugh requires annual Airbnb permit renewal with safety, trash, and local contact compliance. Recent enforcement includes citations for impermeability issues (such as too much gravel coverage in yards), which can delay or derail permits.
Notable HOAs:
A Pocono Country Place: The largest HOA in the region by volume. Airbnbs allowed but must be registered. Rumors of bans have surfaced, but no official changes as of 2026.
Pocono Farms Country Club: Airbnbs permitted; strong amenities like golf and a pool attract families.
Pocono Farms East: Smaller and quieter with very low dues but limited infrastructure.
Investor insights: Processes are predictable if you follow the rules. Best for investors comfortable with annual inspections and HOA oversight.
Jackson Township: Resort-Only Airbnb Zoning
County: Monroe
Vibe: Built around Camelback Resort
Investor Appeal: Low unless targeting resort condos
Zoning & Enforcement: Airbnbs banned in residential zones except around Camelback
Jackson Township bans Airbnbs in residential areas, with the sole exception being the Recreation (R) Zone adjacent to Camelback Resort and Aquatopia Waterpark.
Notable HOAs:
The Village at Camelback and Northridge at Camelback: Both were designed for transient use. Airbnbs are common, but Northridge enforces fines aggressively and reports violations to the township.
Investor insights: Resort condos near Camelback are viable but carry high HOA fees and seasonal risk. Skip Jackson unless you are focused on that niche.
Lehigh Township (Big Bass Lake): A Hidden Gem with Local Support
Counties: Wayne and Lackawanna
Vibe: Wooded, family-friendly lake community
Investor Appeal: Moderate to high
Zoning & Enforcement: Airbnbs allowed; HOA enforces behavior
Lehigh Township is anchored by the Big Bass Lake HOA, one of the most well-run and Airbnb-friendly communities in the region. The HOA prioritizes noise control and guest behavior over banning Airbnbs.
Investor insights: Big Bass Lake is a good fit for investors who want community amenities without HOA hostility. Expect more family vacationers than party groups.
Stroud Township: Airbnbs Allowed Only in Two HOAs
County: Monroe
Vibe: Suburban hub with commuter traffic
Investor Appeal: Low unless in the right HOA
Zoning & Enforcement: Airbnbs banned except in specific HOAs
Stroud Township prohibits Airbnbs in most residential areas, but two HOAs allow them:
Penn Estates: Airbnbs permitted but with heavy oversight and political tension between owners and the HOA.
Blue Mountain Lake: Airbnbs allowed, with a suburban vibe and higher price points.
Investor insights: Only consider Stroud if you are targeting these two HOAs. Community sentiment is mixed, so due diligence is critical.
Final Takeaway for Airbnb Buyers
The Poconos Airbnb market is still viable in 2026, but zoning and HOA enforcement vary dramatically by township. Each community has different permit caps, inspection requirements, and guest rules that directly impact your revenue potential.
Before you go under contract:
Confirm zoning allows Airbnbs.
Get written confirmation from the HOA (if applicable).
Ask about permit caps and waitlists.
Budget for potential delays in inspections or approvals.
Investors who choose townships with clear, stable rules avoid the costly delays we see when buyers guess wrong.
FAQ: Poconos Township Airbnb Zoning, HOAs, and Investor Takeaways
Which townships in the Poconos still allow short-term rentals (Airbnbs) in 2026?
Eight townships in the Western Poconos remain active for Airbnbs in 2026:
Kidder Township
Penn Forest Township
Tunkhannock Township
Tobyhanna Township
Coolbaugh Township
Jackson Township (only near Camelback in the Recreation Zone)
Lehigh Township (Big Bass Lake HOA)
Stroud Township (only Penn Estates and Blue Mountain Lake HOAs)
Each has different permit caps, HOA rules, and enforcement styles, so buyers need to confirm eligibility before closing.
Where is it easiest to get an Airbnb permit in the Poconos?
Kidder Township, Penn Forest Township, and Tunkhannock Township have the most straightforward permit processes right now. Tobyhanna Township has a 12% cap on Airbnb permits, and new applicants may be waitlisted. Coolbaugh Township is predictable if your paperwork is correct. Stroud Township is the strictest because only two HOAs allow Airbnbs.
Which Poconos townships are the highest risk for Airbnb buyers?
Stroud Township and Jackson Township carry the most restrictions. Stroud only allows Airbnbs in two HOAs (Penn Estates and Blue Mountain Lake) with heavy oversight. Jackson bans Airbnbs in residential zones except in the Camelback Recreation Zone. Buyers who ignore these limits risk fines or being unable to operate.
Which townships in the Poconos have Airbnb permit caps or waitlists?
Tobyhanna Township is the only township with a 12% Airbnb cap across all residential units. If the cap is reached, new applicants go on a waitlist until a permit becomes available. All other townships issue permits as long as zoning and safety requirements are met.
Which HOAs in the Poconos are the most Airbnb-friendly?
Lake Harmony Estates (Kidder Township): Large inventory, lake access, and consistent bookings.
Briar Crest Woods (Tunkhannock Township): Minimal HOA oversight and quieter guest stays.
Big Bass Lake HOA (Lehigh Township): Fair permitting process and low drama with owners.
Camelot Forest and Locust Lake Village (Tobyhanna Township): Clear permit steps, generally Airbnb-friendly.
HOAs like Penn Estates (Stroud) and Northridge at Camelback (Jackson) allow Airbnbs but are known for heavy oversight and fines.
Which townships have fewer HOA restrictions for Airbnbs?
Tunkhannock Township and Kidder Township offer more single-lot properties and fewer large HOAs, giving owners more control over guest experience. Pocono Farms East in Coolbaugh Township and standalone homes in Penn Forest also have lighter HOA involvement.
Can I buy a home in the Poconos and get an Airbnb permit after closing?
You should never assume you can get an Airbnb permit after closing. Each township has different zoning and HOA rules, and some properties are ineligible. Always confirm zoning, HOA status, and permit caps before going under contract.
How long does it take to get an Airbnb permit in the Poconos?
Average timelines vary by township:
Kidder, Penn Forest, and Tunkhannock: 4-8 weeks if paperwork and inspections are correct.
Tobyhanna: 6-10 weeks, but you may wait longer if the 12% cap is full.
Coolbaugh: 6-12 weeks with annual renewals.
Stroud and Jackson: Harder to qualify; timelines vary and often stretch longer due to HOA approvals.
Delays happen if inspections fail or paperwork is incomplete.
Which Poconos townships are best for first-time Airbnb investors?
Kidder Township, Penn Forest Township, and Tunkhannock Township are ideal for first-time buyers. They have clearer permit processes, fewer enforcement surprises, and multiple property types (lakefronts, ski chalets, cabins).
What are the biggest mistakes buyers make when choosing a township for Airbnbs?
Assuming the seller’s “Airbnb-friendly” statement is accurate without confirming with the township or HOA.
Ignoring HOA restrictions on guest amenities, fire pits, or parking.
Underestimating permit caps or waitlists (especially in Tobyhanna).
Not budgeting for delays or extra costs from failed inspections.
About the Author
Jeremiah Noll is a Poconos-based broker (License #RM425834) and rental operator. As the lead at Galvanized Management and iREPoconos, he approaches every deal and every property like an operator, not a salesman. Expect straightforward guidance, real-world math, and fewer surprises after closing.
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