Short-Term Rental Laws in Lancaster, Pennsylvania

Lancaster City's 2021 zoning amendment requires Short-Term Lodging Use Permit for all STR operations. The ordinance distinguishes between Owner-Occupied (permitted in all residential zones with permit) and Non-Owner-Occupied (restricted to Mixed-Use, Downtown Commercial, and Urban Center zones; conditional use in some residential zones). The historic district overlay covering the downtown and surrounding 18th–19th century neighborhoods adds Historical Commission review for exterior changes. Lancaster County (outside city limits — Lititz, Strasburg, Bird-in-Hand, Intercourse — the Amish country tourism zone) operates very different township-level frameworks.

Lancaster City zoning: Downtown Commercial (DC) and Mixed-Use Center (MUC) broadly permit Short-Term Lodging Use. R-1, R-2, R-3 Residential zones primarily allow Owner-Occupied STR with permit; Non-Owner-Occupied STR is conditional use (Zoning Hearing Board approval) or prohibited. The Historic District Overlay adds Historical Commission review. Many of the well-known "Lancaster STR" properties are actually in Lancaster Township, Manheim Township, or East Lampeter Township — verify whether your parcel is City of Lancaster or a surrounding township.

Operators must hold a short-term rental permit before listing. See the official permit portal.

Lancaster City Economic Development + Neighborhood Revitalization department administers the Short-Term Lodging Use Permit with annual renewal. Application requires Use & Occupancy Permit, proof of insurance, 24/7 local responsible-party contact, life-safety self-certification, parking plan, and Historical Commission approval if in the historic overlay. Lancaster County Hotel Tax (5%) collected by the County Treasurer's office via monthly remittance. Operating without a permit: per-day administrative fines + back-tax assessment.

Combined short-term lodging tax in Lancaster is approximately 11.000% of gross nightly revenue (state sales + state TRT + local TRT + applicable resort/city options).

PA State sales 6% + Lancaster County Hotel Tax 5% — combined ~11.0% on transient lodging

Verify the current combined rate via the Utah State Tax Commission before remitting — rates drift quarterly.