A Buyer’s Guide to Investing in the Poconos Short-Term Rental Market

If you’ve been considering purchasing a vacation rental property in the Poconos, you’re not alone—and for good reason. This iconic region, known for its natural beauty and close proximity to both New York City and Philadelphia, has become a hotbed for short-term rental (STR) investment. In this guide, we’ll walk you through the essentials of buying, setting up, and operating a successful rental in the Pocono Mountains.

Where Are the Poconos, and Why Are They So Popular?

The Pocono Mountains region stretches from Allentown to Scranton (north to south), and from Port Jervis to historic Jim Thorpe (east to west). Key towns include Stroudsburg, Mount Pocono, Lake Wallenpaupack, and the Delaware Water Gap. Just two hours from both NYC and Philly, the Poconos are a natural escape for weekend travelers and vacationing families.

What draws guests here? Think outdoor adventure—skiing, hiking, whitewater rafting, lakes, golf, casinos, and waterparks. It’s not so much about towering mountains (ironically), but the accessible wilderness and year-round recreation.

What Makes the Poconos STR Market Unique?

1. Fragmented Regulation

Regulations vary wildly in the Poconos. Every state, county, township, HOA, and neighborhood might have its own set of rules. Some areas welcome STRs, others restrict them, and legal battles continue across the board. Before buying, be sure to:

• Understand local STR ordinances
• Check HOA rules and zoning maps
• Talk to neighbors and town officials

When in doubt—ask someone who knows the area well. Wander Home has extensive experience navigating this regulatory maze.

2. Snapshot of the Market (via AirDNA)

According to AirDNA, the region hosts approximately 7,000 to 7,500 listings with a mix of:​

• 1-2 bedrooms: 20%
• 3 bedrooms: 40%
• 4 bedrooms: 20%
• 5+ bedrooms: 20%​

The average occupancy rate is around 42%, with an average length of stay of three nights or less. Average gross revenue, including cleaning fees, is approximately $55,000.​

Interestingly, 2- and 3-bedroom homes bring in similar revenue, but 5+ bedrooms perform the best.

Thinking of Buying? Here’s How to Start Smart

• Team Up: Real estate is a collaborative effort. Partner with a knowledgeable realtor familiar with local regulations, a lender to understand your financing options, and a property manager early in the process.​ Reasch out to us and we will put you in touch with a solid realtor familiar with STRs in the Poconos.
• Analyze Deals: Use tools like AirDNA or BNB Calc, or work with a manager to estimate returns. But always do your own analysis before making an investment.

Some rough cost estimates to keep in mind:

• Cleaning expense: 15–18% of gross revenue (guests pay, but it affects analysis)
• Management fees: 10–25%
• Maintenance: 5–10%
• Utility costs: Can be steep—$1,500–$2,000/month in winter isn’t unheard of
• Overall expense ratio (with a manager): ~40–55% before mortgage
• Furnishing and setup: Budget $25,000+ for quality fit-out, average sized home. Design/fitout/staging costs exceeding $200K are not unheard of.
• Property Features: Properties with unique features like waterfront access, privacy, or ample space tend to perform better. If your budget is under $350,000, consider a 2-bedroom property; otherwise, 4+ bedrooms are recommended.​ Turnkey homes from burnt-out or low quality hosts can be gold mines, as can homes that require renovations.

After You Close: Launch Like a Pro

Design & Fit-Out

This starts before you close. Whether you DIY or hire a designer, make thoughtful decisions—how your home looks and feels will directly affect your bookings.

Don’t cut corners or delay upgrades. You’ll end up spending more down the line if guests don’t love your space or your reviews fall short.

Need a fit-out checklist? Reach out and we’ll share one with you.

Build Your Ops Team

• Cleaners: Your MVPs—make sure they’re set up for success.
• Handymen: The hardest to find and retain in this area. Build relationships early.
• Managers: If you’re using one, lean on their advice and systems. A good manager will already know the local pain points.

Stocking Your Home

• Buy in bulk (HostGPO, Walmart, Costco)
• Set up a locked supply closet—guests don’t need unlimited access.
• Provide thoughtful touches—local welcome gifts go a long way.

The fastest we’ve seen someone go from close to launch: 2 months. Plan accordingly.

Launching the Right Way

• Timing: Coordinate with your manager to ensure the property is fully prepared before opening your calendar to bookings. Consider a soft launch with preliminary photos and updates as you finalize preparations.​
• Professional Photography: Invest in high-quality photos to showcase your property effectively.​

Managing Like a Pro

• Technology Stack: Implement a Property Management System (PMS), channel manager, revenue management tools, and on-site security measures.​
• Guest Experience: Offer 24/7 guest communication, direct booking options, and personalized touches like welcome gifts to enhance guest satisfaction.​

Partnering with Wander Home

At Wander Home, we specialize in full-service property management for luxury vacation rentals in the Poconos. We help buyers at every stage—from finding the right property, to analyzing deals, to full-service management once you launch. Whether you're just getting started or adding another home to your portfolio, we're here to support you with local expertise and high-touch service.

Want to learn more or get a free copy of our analyzer or fit-out checklist? Just reach out!

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Buying in the Poconos can be a rewarding investment—if you approach it with the right knowledge and team. The market has room for smart operators who are willing to put in the time, care, and capital to create standout experiences for guests.