Lebanon Short-Term Rental Regulations

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Permit & Licensing

Zoning Permit

The property must be your primary residence. This means investment properties are not eligible for this permit type.

Zoning restriction: Permitted by right (no special exception needed) in every zoning district in the City as an accessory use under Zoning Ordinance §1306.03(16), provided a permanent resident lives in and oversees the rental (portion-of-dwelling rentals, any duration) or the dwelling remains the permanent resident's primary residence while temporarily away (whole-unit rentals capped at 30 days/calendar year). No Residential Rental License under Art. 1907 is required because the unit qualifies as an owner-occupied dwelling unit.

Residential Rental License (general rental licensing ordinance, Art. 1907)

This permit type does not require primary residence. Zoning restriction: The Short-Term Rental of a Dwelling accessory use is permitted by right in every zoning district (§1306.03(16)), but that section's text is limited to a “permanent resident” living in or overseeing the rental — it does not address a dwelling with no resident owner being used for continuous short-term (under-30-day) rentals, so this operating model's zoning authorization is unclear. Ordinary rental (30+ days) of a non-owner-occupied dwelling is a permitted residential use requiring a Residential Rental License under Art. 1907.

Application Process

Zoning Permit: submit a written application on a City-provided form (with required fee) to a designated City staff-person; the Zoning Officer issues the permit if the application meets all Ordinance requirements (no hearing needed for this permitted-by-right accessory use). Residential Rental License (non-owner-occupied units): submit the CE-405 Rental License Application (or apply via the Civic Access online portal), pay the annual per-unit fee, and the unit is placed on a 4-year rotating inspection schedule (heating, plumbing, electrical, smoke detectors, sanitation) by the Code Enforcement Officer.

Note: Document requirements vary by permit type. See individual permit sections above for eligibility details.

Tax Obligations

Combined rate: 11% of gross rental income.

Collection: Some home-sharing platforms voluntarily collect and remit the PA Hotel Occupancy Tax on the host's behalf; if a host does not exclusively use such a platform, the host must register with the PA Dept. of Revenue and collect/remit the tax directly via myPATH. The Lebanon County Hotel Room Rental Tax is collected and administered separately by the Lebanon County Treasurer's Office.

Filing: Monthly

Rental Limits

Lebanon does not impose an annual cap on the number of nights you can rent.

Occupancy & Density Limits

4 or fewer unrelated individuals per dwelling unit (Zoning Ordinance “Family” definition, referenced by the Short-Term Rental of a Dwelling provision for portion-of-dwelling rentals)

Zoning & Restrictions

• Owner-occupied: Permitted by right (no special exception needed) in every zoning district in the City as an accessory use under Zoning Ordinance §1306.03(16), provided a permanent resident lives in and oversees the rental (portion-of-dwelling rentals, any duration) or the dwelling remains the permanent resident's primary residence while temporarily away (whole-unit rentals capped at 30 days/calendar year).
• No Residential Rental License under Art. 1907 is required because the unit qualifies as an owner-occupied dwelling unit.
• Short-Term Rental of a Dwelling is a permitted-by-right accessory use in every zoning district in the City (residential, commercial, and industrial) under Zoning Ordinance §1306.03(16) — no special exception or zoning hearing board approval is required, subject to the permanent-resident conditions described above.

Insurance & Safety

Insurance

Lebanon does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

• Smoke detectors
• Compliance with heating, plumbing, and electrical provisions of the International Property Maintenance Code (IPMC)

Penalties for Non-Compliance

First violation on a lot in a calendar year: $200. Second violation: $500. Third and each subsequent violation: $1,000. Operating a regulated rental unit without the required Residential Rental License: $1,000, and the building may be marked as condemned until registration is received.

Market Snapshot

Demand context for Lebanon from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Lebanon:

1. Determine your permit type. Lebanon has 2 permit types. Identify which applies to your property (Zoning Permit, Residential Rental License).
2. Meet safety requirements. Smoke detectors. Compliance with heating, plumbing, and electrical provisions of the International Property Maintenance Code (IPMC).
3. Apply for your STR permit. Submit application + $60 fee. See permit types above to determine which applies.
4. Register for tax accounts. Set up lodging tax accounts with Pennsylvania Department of Revenue and Lebanon County Treasurer's Office.
5. Collect and remit taxes. 11% on all bookings.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Lebanon?

Yes. Lebanon requires a short-term rental permit to operate an Airbnb or Vrbo, and there are 2 permit types — one requires the property to be your primary residence, and another allows non-owner-occupied (investment) use. See the permit types above to find which applies to your property.

How much does a short-term rental permit cost in Lebanon?

A short-term rental permit in Lebanon costs $60.

Does Lebanon require a short-term rental to be your primary residence?

It depends on the permit type. At least one Lebanon permit requires the property to be your primary residence, while another allows non-owner-occupied (investment) use — see the permit types above.

How many days a year can you short-term rent in Lebanon?

Lebanon does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.

What taxes do you pay on a short-term rental in Lebanon?

Short-term rental stays in Lebanon are subject to a combined 11% in lodging taxes. This combines 6% Pennsylvania Hotel Occupancy Tax + 5% Lebanon County Hotel Room Rental Tax. Hosts are legally responsible; many booking platforms collect and remit them automatically on the host's behalf.

What are the penalties for short-term rental violations in Lebanon?

Penalties run up to $1,000.