%
CapRateCity
Free cap rate calculators for every US market
← All comparisons

Allentown vs Pittsburgh for Rental Property Investing

Side-by-side comparison of Allentown, PA and Pittsburgh, PA — cap rates, rent, prices, and investment metrics.

Pittsburgh wins 4–3 across key metrics
Pittsburgh leads on cash flow (5.27% vs 3.54% cap rate) · Allentown leads on population growth
Metric
Allentown, PA
Pittsburgh, PA
Est. Cap Rate
3.54%
5.27%
Median Home Price
$350,000
$220,000
Median Monthly Rent
$1,770
$1,450
1% Rule
0.51%
0.66%
GRM
16.5x
12.6x
Price / Income
8.2x
4.2x
Property Tax Rate
1.38%
1.36%
Vacancy Rate
5.8%
6%
Population Growth
0.3% / yr
0.2% / yr
Annual Appreciation
2.5%
2.3%
Population
126,092
302,971
Median Income
$42,800
$52,800

Allentown vs Pittsburgh: Which Is Better for Investors?

Cash flow: Pittsburgh has the edge with an estimated cap rate of 5.27% compared to Allentown's 3.54%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $350,000 in Allentown vs $220,000 in Pittsburgh, while rents come in at $1,770/mo and $1,450/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Allentown is growing faster at 0.3% annually vs Pittsburgh's 0.2%. Allentown leads on home value appreciation at 2.5% per year.

Costs & risk: Property taxes are 1.38% in Allentown vs 1.36% in Pittsburgh. Vacancy rates of 5.8% and 6% are mixed — Allentown has the tighter rental market.

Entry point: Pittsburgh offers a lower entry at $220K vs Allentown's $350K — a difference of $130K. With a 20% down payment, that's $44K vs $70K. Pittsburgh combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Pittsburgh edges out Allentown on most key metrics. With a 5.27% cap rate, it offers solid cash flow potential. Use our free calculators to model specific deals in Allentown or Pittsburgh.

Sponsored · Want to analyze a specific property? DealCheck imports real listing data and runs the full analysis for you.
Try Free →
Allentown, PA
3.54% cap rate · $350,000 median · $1,770/mo
Full analysis →
Pittsburgh, PA
5.27% cap rate · $220,000 median · $1,450/mo
Full analysis →

Frequently Asked Questions

Is Allentown or Pittsburgh better for rental investing?
Pittsburgh wins 4–3 across our 7 key metrics. Pittsburgh's 5.27% cap rate and $220K median price give it the edge overall.
What is the cap rate difference between Allentown and Pittsburgh?
Allentown has a 3.54% cap rate vs Pittsburgh's 5.27% — a difference of 1.74 percentage points. This is a significant gap that meaningfully impacts cash flow. For context, the national average is 3.81%.
Which city has lower property taxes?
Pittsburgh has lower property taxes at 1.36% vs 1.38%. On a $285K property, that's a difference of approximately $1,838/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Allentown is growing at 0.3% annually vs Pittsburgh's 0.2%. Both cities have slow growth — focus on the strongest neighborhoods. Allentown's appreciation rate of 2.5% also leads on home value growth.

Explore More

The CapRateCity Report
Weekly market analysis: highest cap rate cities, emerging markets, and deal breakdowns. Free, no spam.