Side-by-side comparison of Erie, PA and Allentown, PA — cap rates, rent, prices, and investment metrics.
Cash flow: Allentown has the edge with an estimated cap rate of 3.54% compared to Erie's 3.38%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $210,000 in Erie vs $350,000 in Allentown, while rents come in at $1,050/mo and $1,770/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, while Erie is losing population. Allentown leads on home value appreciation at 2.5% per year.
Costs & risk: Property taxes are 1.4% in Erie vs 1.38% in Allentown. Vacancy rates of 7% and 5.8% are mixed — Allentown has the tighter rental market.
Entry point: Erie offers a lower entry at $210K vs Allentown's $350K — a difference of $140K. With a 20% down payment, that's $42K vs $70K. Allentown's higher price may be justified by stronger growth.
Bottom line: Allentown edges out Erie on most key metrics. While cap rates are moderate at 3.54%, Allentown's overall profile is stronger. Use our free calculators to model specific deals in Erie or Allentown.