How Allentown Handles Short-Term Rentals: A Practical Guide

Allentown maintains 106 local ordinances across all categories, and 6 of those deal specifically with short-term rentals. Here is a breakdown of what the city actually requires, what is prohibited, and where Allentown falls on the strict-to-permissive spectrum compared to other cities.

Permit Requirements

Allentown has no dedicated short-term-rental ordinance; any dwelling or rooming unit rented out, including STRs, must hold an active annual Residential Rental License under Article 1759, with a $75 per-unit fee and an inspection required for the initial license.

Key details: Dedicated STR Ordinance: None adopted (per PA JSGC, Aug 2024). Governing Code: Article 1759 - Licensing Residential Rental Units. Annual License Fee: $75 per unit, due Dec 31. Initial Inspection: Required before first license. Out-of-County Owners: Must name a Lehigh County agent.

Operating any residential rental unit without an active annual residential rental license is unlawful under Article 1759. Non-compliance can result in revocation of the residential rental registration or license (sections 1759.05C and 1759.06D); the reinstatement fee for a revoked registration or license is $100 per residential rental unit under section 1759.99A(4).

Noise Rules

Allentown STRs must comply with general noise ordinance. Hosts responsible for guest behavior. Multiple complaints may trigger permit review.

Key details: Quiet Hours: 10 PM to 8 AM typical. Parties: Generally prohibited. Response: Host must respond promptly. Complaints: May trigger permit review.

Noise violation at STR: $100 to $500. Multiple complaints: permit suspension/revocation. Host responsible for guest behavior.

Taxes & Fees

Allentown collects state and local hotel occupancy taxes on stays under 30 days. PA state rate is 6%. Municipal rates vary (typically 1 to 5% additional).

Key details: State Tax: 6% Hotel Occupancy. Local Tax: Varies (1 to 5% typical). Platforms: Auto-collect state tax. Filing: Monthly with PA DOR.

Non-remittance: back taxes + 5 to 25% penalty + interest. Willful evasion: criminal charges possible. PA DOR audit authority.

Parking Rules

Allentown may require designated parking for STR guests. On-street parking limits set locally. Parking plan may be part of STR permit application.

Key details: Off-Street: May be required for STR. Street Limit: Set by municipality. Permit Zones: May restrict guest parking. Disclosure: Include in listing.

Parking plan non-compliance may affect STR permit renewal. Street parking violations: standard municipal fines.

Occupancy Limits

Allentown sets no STR-specific guest cap, but its 2025 Zoning Ordinance (eff. Jan 1, 2026) caps a Bed and Breakfast Inn at 10 guest rooms with a 14-consecutive-day limit and on-site owner/operator, and limits rooming/boarding rental units to a maximum of 2 adults each (250 sq. ft. minimum, 6 units per lot).

Key details: STR-Specific Guest Cap: None set by City. B&B Room Cap: Max 10 guest rooms (660-37.I). B&B Stay Limit: No rental over 14 consecutive days. B&B Owner Rule: Owner/operator must live on-site full-time. Rooming Unit Occupancy: Max 2 adults; 250/350 sq ft min; 6 units/lot.

Operating overnight transient lodging in a district where Lodging/Hotel/Motel or Bed and Breakfast use is not permitted, or exceeding the 10-room B&B cap, the 14-consecutive-day limit, or the 2-adult rooming-unit occupancy limit, is a zoning violation enforceable by the Zoning Officer and, for the rental license, by Building Standards & Safety. Rooming/boarding houses must also comply with the Property Rehabilitation and Maintenance Code (Chapter 455) and provide access for code inspection before a zoning permit issues, and building/fire occupant-load limits set during the required rental inspection independently cap lawful occupancy.

Insurance Requirements

Allentown may require hosts to carry liability insurance for short-term rental properties. Minimum coverage amounts vary by jurisdiction.

Key details: Coverage: $500K to $1M typical. Homeowner Policy: May not cover STR. Platform Insurance: May not satisfy local rules. Proof: May be required at renewal.

Operating without required insurance may result in permit denial or revocation. Hosts may face personal liability for uninsured claims.

The Bottom Line

Allentown's short-term rentals rules are a mixed bag. Some areas are strict, others are relaxed, and the details matter. The best approach is to check the specific rule that applies to your situation rather than assuming Allentown is broadly strict or permissive.

All of the above reflects Allentown's municipal code as of our last review. If you need specifics on fines, exemptions, or filing requirements, the detailed ordinance pages linked above have the full breakdown.