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Bethlehem vs Harrisburg for Rental Property Investing

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

Bethlehem wins 7–0 across key metrics
Bethlehem leads on cash flow (3.57% vs 3.07% cap rate)
Metric
Bethlehem, PA
Harrisburg, PA
Est. Cap Rate
3.57%
3.07%
Median Home Price
$350,000
$300,000
Median Monthly Rent
$1,770
$1,410
1% Rule
0.51%
0.47%
GRM
16.5x
17.7x
Price / Income
6.7x
7.8x
Property Tax Rate
1.36%
1.4%
Vacancy Rate
5.5%
6.5%
Population Growth
0.3% / yr
0.1% / yr
Annual Appreciation
2.5%
2.2%
Population
76,000
50,000
Median Income
$52,400
$38,400

Bethlehem vs Harrisburg: Which Is Better for Investors?

Cash flow: Bethlehem has the edge with an estimated cap rate of 3.57% compared to Harrisburg's 3.07%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $350,000 in Bethlehem vs $300,000 in Harrisburg, while rents come in at $1,770/mo and $1,410/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Bethlehem is growing faster at 0.3% annually vs Harrisburg's 0.1%. Bethlehem leads on home value appreciation at 2.5% per year.

Costs & risk: Property taxes are 1.36% in Bethlehem vs 1.4% in Harrisburg. Vacancy rates of 5.5% and 6.5% are mixed — Bethlehem has the tighter rental market.

Entry point: Harrisburg offers a lower entry at $300K vs Bethlehem's $350K — a difference of $50K. With a 20% down payment, that's $60K vs $70K. Bethlehem's higher price may be justified by stronger growth.

Bottom line: Bethlehem edges out Harrisburg on most key metrics. While cap rates are moderate at 3.57%, Bethlehem's overall profile is stronger. Use our free calculators to model specific deals in Bethlehem or Harrisburg.

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Bethlehem, PA
3.57% cap rate · $350,000 median · $1,770/mo
Full analysis →
Harrisburg, PA
3.07% cap rate · $300,000 median · $1,410/mo
Full analysis →

Frequently Asked Questions

Is Bethlehem or Harrisburg better for rental investing?
Bethlehem wins 7–0 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Bethlehem's 3.57% cap rate and $350K median price edge out Harrisburg's 3.07% at $300K.
What is the cap rate difference between Bethlehem and Harrisburg?
Bethlehem has a 3.57% cap rate vs Harrisburg's 3.07% — a difference of 0.50 percentage points. This is a relatively small difference — other factors like growth, taxes, and local market conditions may matter more. For context, the national average is 3.81%.
Which city has lower property taxes?
Bethlehem has lower property taxes at 1.36% vs 1.4%. On a $325K property, that's a difference of approximately $560/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Bethlehem is growing at 0.3% annually vs Harrisburg's 0.1%. Both cities have slow growth — focus on the strongest neighborhoods. Bethlehem's appreciation rate of 2.5% also leads on home value growth.

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