Buying a Short-Term Rental in a Pocono HOA vs. Outside an HOA: Which Is the Better Investment?

One of the most common questions I receive from buyers looking for a Pocono short-term rental investment is whether they should purchase inside a homeowners association (HOA) or look for a property without one.

Many investors instinctively say they want to avoid an HOA. They worry about annual dues, guest registration requirements and fees, community rules, and the possibility of restrictions affecting their Airbnb business. Those are legitimate concerns, but after helping hundreds of investors purchase vacation rentals throughout the Pocono Mountains, I’ve learned that the answer is much more nuanced.

In today’s market, the biggest difference between HOA and non-HOA properties isn’t the monthly dues. It’s the availability of legally rentable homes.

As municipalities across the Pocono Mountains have updated their zoning ordinances, many have limited where short-term rentals are permitted. In most townships, STRs are not allowed throughout every residential neighborhood. The restrictions are even tighter within the boroughs, where vacation rentals are generally limited to commercially zoned properties. As a result, investors looking for homes outside of an HOA quickly discover that their options are surprisingly limited.

Today, there are approximately 50 residential properties outside of HOAs where short-term rentals are currently permitted, compared with roughly 550 homes located within HOA communities where STRs are allowed. Even after including homes located in commercial zoning districts, investors still have roughly ten times more inventory available inside HOA communities than outside them.

For a listing of the rules, see our Pocono Municipal STR Scorecard and Pocono Community STR Scorecard –

That supply imbalance has become one of the defining characteristics of the Pocono vacation rental market.

For buyers searching Zillow every morning hoping to find the perfect non-HOA Airbnb, the reality is simple: there just aren’t many available. When one does hit the market, competition is often intense because experienced investors understand how rare these opportunities have become. 

This is one reason why so many successful Pocono Airbnb investors ultimately purchase within an HOA. Communities like Lake Harmony Estates , Arrowhead Lake, Big Bass Lake, Towamensing Trails, and several others were originally designed as places to vacation. The homes feel like vacation homes, they are designed like vacation homes and have been vacation homes for generations.  Today’s guests appreciate many of the same features that attracted second-home owners decades ago: private lakes, beaches, swimming pools, clubhouses, playgrounds, tennis courts, security, and year-round recreational amenities.

Those amenities don’t simply make vacations more enjoyable—they have a brand. Vacation renters often are coming to the Poconos year after year and have their favorite communities and when it is time to book, they compare listings based on the community they know and love. A home located within an attractive resort-style community often commands stronger occupancy and higher nightly rates than a comparable home without access to similar amenities.

HOAs also provide another benefit that many investors overlook. They help maintain the overall appearance of the community. Roads, common areas, recreational facilities, landscaping, and shared infrastructure are maintained through the association. For out-of-state owners who only visit periodically, that consistency can provide both convenience and long-term value.  Many communities have cleaners and maintenance people that live right in the community and therefore there is ample help to support your property.  These communities often have welcome centers and guest services departments to support guest needs and have public safety oriented to serving guests, those that pay as a STR or those that are just visiting and staying for free.

Of course, owning within an HOA is not without risk.

The concern I hear most often isn’t actually the annual dues. It’s the possibility that the rules may change and the cumbersome process of registering (and paying for) guests.

Unlike township zoning ordinances, which typically require a public legislative process, HOA rules may be amended according to the association’s governing documents. Some communities have adopted guest registration programs, occupancy limits, parking regulations, quiet-hour enforcement, or additional compliance requirements. Others have debated new restrictions on future short-term rentals.

That doesn’t mean every HOA is hostile toward vacation rentals. In fact, many Pocono communities have embraced them for decades. However, every buyer should understand the association’s history before making an offer.

When evaluating an HOA, I encourage clients to ask several important questions. Has the community historically supported short-term rentals? Have there been recent discussions about changing the rules? Would higher guest fees materially affect projected cash flow? Would occupancy limits reduce expected revenue? Understanding those issues before purchasing is far easier than discovering them after closing.

Ironically, many buyers spend far more time comparing HOA dues and guest fees than they do evaluating potential rental income.  From an investment standpoint, that’s often backwards.

A community charging higher annual dues may produce substantially greater revenue because guests value the amenities and are willing to pay premium nightly rates. Conversely, a property without an HOA may have lower operating expenses but require significant investments in amenities such as hot tubs, game rooms, outdoor entertainment spaces, or landscaping to remain competitive.

The question shouldn’t simply be whether the HOA fee is expensive. The better question is whether the amenities and community reputation generate enough additional rental income to justify the cost. Essentially, are you getting what you are paying for.  Community fees go into community operations and that includes amenities.  If one community has a $500 fee and another has a $2,000 fee, what are you getting with the money?  Are the amenities the attraction or is the home sufficient?  These are the business questions, estimating the ROI of a bare bones community association to that of one that is more like a resort.

That said, non-HOA properties remain excellent investments when you can find them. Owners generally enjoy greater flexibility, fewer restrictions, and less concern about future association rule changes. Some of the highest-performing vacation rentals in the Pocono Mountains operate outside of HOAs, particularly in established resort areas like Lake Harmony, Arrowhead Lake, Big Bass Lake.

The challenge isn’t just performance. The challenge is supply.

As local zoning regulations have become more restrictive, legally operating non-HOA vacation rentals have become increasingly scarce. That scarcity often drives buyer competition whenever one becomes available.

So, should you buy inside an HOA or outside one?

For most investors, the answer depends less on personal preference and more on investment objectives. Buyers seeking the widest selection of available properties, established vacation communities, and resort-style amenities will often find the strongest opportunities inside HOA communities. Buyers who prioritize maximum flexibility and fewer community restrictions may prefer a non-HOA property, but they should be prepared for a much smaller inventory and stronger competition and much more of need to be aggressive in marketing.

Pocono Homes for Sale in Residential Zoning where STR is Permitted: