The Poconos cover a large geographic area across Monroe County and Pike County in northeastern Pennsylvania, and not every part of the region performs equally as a short term rental market. Where you buy matters enormously. The right neighborhood can mean the difference between a median performing property and one that consistently hits the 75th or 90th percentile in revenue.
This guide breaks down the seven best areas for STR investment in the Poconos, including what makes each one unique, what type of properties perform best, and what price points to expect.
For reference, here are the overall Poconos STR revenue benchmarks:
- 50th percentile: $32,000 per year
- 75th percentile: $48,000 per year
- 90th percentile: $72,000 per year
1. Lake Wallenpaupack Area
County: Pike County / Wayne County border Price range: $300,000 to $600,000+ for lakefront or lake-access properties Best for: Waterfront cabins, family vacation homes, summer-dominant revenue
Lake Wallenpaupack is the crown jewel of Poconos lake properties. This 5,700-acre lake is 13 miles long with 52 miles of shoreline, making it the largest body of water in the Poconos and one of the most popular recreational lakes in the Northeast.
Why It Works for STR Investors
Lake properties command premium nightly rates, especially during summer months. Guests from NYC, Philly, and New Jersey will pay significantly above market average for a property with a dock, lake views, or direct water access. Summer weekends are the peak earning period, but the area also benefits from fall foliage tourism and ice fishing in winter.
What to Look For
- Direct lake access or lakefront properties command the highest rates but also the highest purchase prices
- Properties within community associations that offer shared lake access (boat launches, beaches) can be a more affordable entry point
- A dock or boat slip adds significant booking appeal
- Hot tubs, fire pits, and outdoor living spaces are expected
Things to Watch
- Some lakefront communities have HOA restrictions on short term rentals. Always verify before purchasing.
- Lake-access properties (not directly on the lake but with community beach/dock privileges) offer a good middle ground on price vs. revenue potential.
- Winter occupancy will be lower than summer. Plan your cash flow accordingly.
2. Camelback Area (Tannersville)
County: Monroe County (Pocono Township) Price range: $250,000 to $500,000 Best for: Ski-adjacent cabins, year-round family destinations, high occupancy properties
The area surrounding Camelback Mountain Resort in Tannersville is arguably the most versatile STR location in the Poconos. Camelback is not just a ski resort. It is a year-round destination with skiing and snowboarding in winter, an indoor water park (Aquatopia), Camelback Mountain Adventures (summer activities including a mountain coaster, zip lines, and treetop course), and proximity to Camelbeach outdoor water park.
Why It Works for STR Investors
Camelback proximity provides the most balanced four season demand profile in the Poconos. Winter ski weekends drive premium pricing. Summer brings water park and adventure seekers. Spring and fall benefit from shoulder season travelers. The indoor water park keeps bookings coming even during rainy weekends and colder months.
This is also a strong area for short midweek stays and last-minute bookings because of the drive-to convenience from New York City and northern New Jersey.
What to Look For
- Properties within a 10 to 15 minute drive of Camelback command the highest rates and occupancy
- 3 to 5 bedroom homes with game rooms, hot tubs, and family-friendly amenities perform exceptionally well
- Ski-in/ski-out or slopeside properties (rare but available) command the absolute highest premiums
- Newer construction or recently renovated properties in this area are in strong demand
Things to Watch
- Competition is higher in this area. You need standout amenities and listing optimization to differentiate.
- Some older community developments near Camelback have deferred maintenance issues. Inspect carefully.
3. Mount Pocono
County: Monroe County Price range: $200,000 to $400,000 Best for: Affordable entry, central location, strong year-round occupancy
Mount Pocono Borough and the surrounding area sit in the geographic heart of the Poconos, providing convenient access to multiple attractions in every direction. Camelback is a short drive south. Kalahari Resort is nearby. Lake Harmony and Big Boulder are accessible to the west. This central positioning makes Mount Pocono properties attractive to guests who want to explore multiple Poconos attractions during their stay.
Why It Works for STR Investors
The central location means your property appeals to a wider range of travelers. Ski families, lake seekers, resort visitors, and nature lovers can all use a Mount Pocono property as a home base. Price points are lower than lakefront or ski-adjacent areas, making it one of the best neighborhoods for return-on-investment calculations.
What to Look For
- Well-maintained cabins and homes with modern updates
- Properties with unique amenities that stand out (themed rooms, home theaters, fire pits, outdoor spaces)
- Access to community amenities (pools, lakes, clubhouses) adds value without the premium of direct waterfront
- Proximity to Route 611 and I-380 for easy guest access
Things to Watch
- Because purchase prices are lower, revenue expectations should be calibrated accordingly. Target the 50th to 75th percentile range.
- Some older developments in the Mount Pocono area were built as seasonal/weekend homes and may need updates to meet modern guest expectations.
- Verify community STR rules carefully. Several Mount Pocono area communities have rental restrictions.
4. Tobyhanna
County: Monroe County (Tobyhanna Township) Price range: $150,000 to $350,000 Best for: Budget-friendly entry, starter STR investments, high cash-on-cash returns
Tobyhanna and the surrounding area offer some of the most affordable entry points in the entire Poconos market. Properties in developments like Pocono Farms, Emerald Lakes, and similar communities can be purchased for under $250,000, making this area particularly attractive for first-time STR investors or those looking to scale a portfolio quickly.
Why It Works for STR Investors
The math is simple: lower purchase price with moderate revenue means stronger cash-on-cash returns. A property purchased for $200,000 that generates even median revenue of $32,000 is producing a much stronger yield than a $500,000 property earning $48,000. Tobyhanna area properties also benefit from proximity to state game lands, Tobyhanna State Park, and outdoor recreation.
What to Look For
- Properties within communities that explicitly allow short term rentals
- Homes with 3+ bedrooms, hot tubs, and updated interiors
- Investments where cosmetic updates (new furnishings, paint, amenity additions) can move a property from median to above-median performance
- Clear access and well-maintained roads (some community roads can be challenging in winter)
Things to Watch
- Many Tobyhanna area communities have HOA restrictions on STRs. This is the number one due diligence item.
- Older homes in this area may have higher maintenance costs. Factor that into your expense projections.
- Well and septic systems are common. Get thorough inspections before purchasing.
5. East Stroudsburg
County: Monroe County Price range: $200,000 to $400,000 Best for: Year-round demand, proximity to Delaware Water Gap, diverse guest appeal
East Stroudsburg sits at the southeastern gateway to the Poconos, just minutes from the Delaware Water Gap National Recreation Area. It is the first town many NYC and NJ visitors encounter when entering the Poconos, which drives strong pass-through and destination traffic.
Why It Works for STR Investors
East Stroudsburg benefits from its position as a gateway town. Guests visiting the Delaware Water Gap for hiking, kayaking, and scenic drives often stay in the area. East Stroudsburg University also generates demand during move-in weekends, homecoming, graduation, and family visit weekends. The town’s restaurants, shops, and local character add to the guest experience.
What to Look For
- Properties near the Delaware Water Gap or with mountain/river views
- Homes that appeal to couples and smaller groups (the guest profile here skews slightly different from the big-cabin ski market)
- Updated properties within walking distance or short drive to downtown East Stroudsburg
- Multi-unit properties (duplexes or properties with in-law suites) that can serve as dual-purpose investments
Things to Watch
- East Stroudsburg has more of a town feel than a resort feel. Market your listing accordingly, emphasizing nature, hiking, and local charm rather than resort amenities.
- Borough regulations may be more specific than rural township rules. Verify permit requirements.
- Flood zone considerations exist for properties near waterways. Check FEMA maps and insurance requirements.
6. Jim Thorpe
County: Carbon County Price range: $200,000 to $450,000 Best for: Boutique/romantic getaways, couples market, charming historic town appeal
Jim Thorpe is often called the “Switzerland of America” thanks to its stunning hillside location along the Lehigh River. This Victorian-era town has become one of the most popular weekend destinations in the Poconos region, known for its charming downtown, Lehigh Gorge Scenic Railway, whitewater rafting, mountain biking on the Switchback Trail, and fall foliage that draws thousands of visitors.
Why It Works for STR Investors
Jim Thorpe occupies a unique niche in the Poconos market. While most Poconos STR demand revolves around family cabin getaways, Jim Thorpe attracts a significant couples and adult friend group demographic. This means smaller properties (2 to 3 bedrooms) can perform well here, lowering your entry cost while maintaining strong nightly rates.
The town’s event calendar is packed: fall foliage weekends, Winterfest, Olde Time Christmas, music festivals, and outdoor adventure events create reliable demand throughout the year.
What to Look For
- Properties within walking distance of downtown Jim Thorpe command premium rates
- Historic homes with character and updated amenities blend the charm factor guests seek
- Properties with views of the Lehigh River or surrounding mountains
- Smaller, well-appointed units that target the couples/romantic getaway market
Things to Watch
- Jim Thorpe is technically in Carbon County, not Monroe or Pike. Local regulations and tax rates may differ.
- Parking can be limited in the downtown area. Off-street parking adds significant value.
- The town’s popularity means competition is increasing. Quality and location matter more here than in less competitive areas.
7. Lake Harmony / Big Boulder Area
County: Carbon County (Kidder Township) Price range: $200,000 to $450,000 Best for: Ski and lake combo properties, winter-heavy revenue, resort community feel
Lake Harmony sits between Big Boulder and Jack Frost ski resorts (both operated by Vail Resorts under the Epic Pass system) and the scenic Lake Harmony itself. This creates a dual attraction: winter ski traffic and summer lake activity. The nearby Split Rock Resort and the overall resort community feel of the area add to its appeal.
Why It Works for STR Investors
The ski resort proximity provides strong winter revenue, while the lake drives summer bookings. Big Boulder and Jack Frost are smaller than Camelback but benefit from the Epic Pass system, which gives them access to a national network of pass holders. This means skiers who might not specifically seek out the Poconos could end up there because their pass covers it.
Lake Harmony is a quieter, less commercial alternative to Camelback or Lake Wallenpaupack, which appeals to guests looking for a more relaxed, less crowded experience.
What to Look For
- Properties accessible to both the ski resorts and the lake
- Homes in resort communities with shared amenities (pools, lakes, tennis courts)
- 3 to 4 bedroom properties with winter and summer appeal (hot tub for ski season, outdoor space for summer)
- Properties along Route 903 corridor for easy access
Things to Watch
- Carbon County regulations apply here, not Monroe or Pike. Verify local requirements.
- Some resort community properties come with higher HOA fees that cut into returns.
- Winter road conditions can be challenging. Properties on well-maintained roads are more bookable.
How to Choose the Right Neighborhood
The best neighborhood for your investment depends on your goals:
Maximize revenue: Lake Wallenpaupack and the Camelback area offer the highest gross revenue potential, but they also require higher purchase prices.
Maximize cash-on-cash returns: Tobyhanna and Mount Pocono offer the best ratio of revenue to purchase price, making them ideal for investors focused on yield.
Minimize risk: The Camelback area offers the most balanced four season demand, reducing your dependence on any single season.
Target a niche: Jim Thorpe for couples/boutique, Lake Wallenpaupack for waterfront luxury, Lake Harmony for ski enthusiasts.
No matter which neighborhood you choose, work with an agent who knows the STR-specific dynamics of each area. A great deal in the wrong neighborhood can underperform, while the right property in the right location will produce strong returns for years.
FAQ
What is the best neighborhood for a first-time STR investor in the Poconos?
Tobyhanna and Mount Pocono offer the most affordable entry points while still delivering competitive returns. Lower purchase prices mean less capital at risk and a faster path to positive cash flow, especially if you self-manage initially.
Which Poconos area has the highest STR revenue?
Lake Wallenpaupack waterfront properties and Camelback area ski-adjacent homes typically generate the highest gross revenue. However, higher revenue does not always mean higher returns when you factor in the higher purchase prices.
Can I buy a short term rental in any Poconos neighborhood?
Not all neighborhoods allow short term rentals. Many private communities and HOA-governed developments in the Poconos restrict or prohibit rentals under 30 days. Always verify community rules and local township regulations before purchasing. For more details, read our Poconos STR regulations guide.
How important is ski resort proximity for Poconos STR revenue?
Very important for winter revenue, but not the only factor. Properties near Camelback, Big Boulder, and Jack Frost see strong December through March demand. However, lake properties and charming town locations like Jim Thorpe can match or exceed annual revenue through summer and event-driven bookings.
Who is the best short term rental agent in the Poconos?
The Short Term Shop is the largest STR-specific brokerage in the United States, and our agents know the Poconos neighborhood by neighborhood. We help you identify which areas align with your investment goals, which communities allow STRs, and which specific properties will perform. Contact our Poconos team to start your search.
Find the Right Property in the Right Poconos Neighborhood
Location is everything in short term rental investing. Our Poconos agents at The Short Term Shop can walk you through the nuances of each neighborhood and help you find properties that match your investment criteria and budget.
📞 Call us: 800-898-1498 🌐 Visit: theshorttermshop.com
New to STR investing? Start with our how to buy a short term rental guide, then connect with our Poconos agents who can match you with the right neighborhood and property.
Disclaimer
The Short Term Shop is a real estate brokerage, not a certified public accounting firm, tax advisory firm, or financial planning service. Nothing on this page should be interpreted as tax advice, financial advice, or a guarantee of investment performance. Always consult your CPA, tax attorney, and financial advisor before making any investment or tax decisions.
All income and revenue figures referenced in this article are sourced from third party data providers including AirDNA and PriceLabs.co. These figures represent market averages and percentile ranges based on historical performance data and do not guarantee future results. Actual short term rental income varies significantly based on property quality, location, management quality, pricing strategy, seasonality, and market conditions. Your results may differ.