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Erie vs Allentown for Rental Property Investing

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

Allentown wins 4–3 across key metrics
Erie leads on cash flow (5.07% vs 4.28% cap rate) · Allentown leads on population growth
Metric
Erie, PA
Allentown, PA
Est. Cap Rate
5.07%
4.28%
Median Home Price
$135,000
$210,000
Median Monthly Rent
$880
$1,200
1% Rule
0.65%
0.57%
GRM
12.8x
14.6x
Price / Income
3.5x
4.9x
Property Tax Rate
1.4%
1.38%
Vacancy Rate
7%
5.8%
Population Growth
-0.4% / yr
0.3% / yr
Annual Appreciation
1.7%
2.5%
Population
94,000
126,092
Median Income
$38,200
$42,800

Erie vs Allentown: Which Is Better for Investors?

Cash flow: Erie has the edge with an estimated cap rate of 5.07% compared to Allentown's 4.28%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $135,000 in Erie vs $210,000 in Allentown, while rents come in at $880/mo and $1,200/mo respectively.

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.

Bottom line: Allentown edges out Erie on most key metrics. While cap rates are moderate at 4.28%, Allentown's overall profile is stronger. Use our free calculators to model specific deals in Erie or Allentown.

Erie, PA
5.07% cap rate · $135,000 median · $880/mo
Full analysis →
Allentown, PA
4.28% cap rate · $210,000 median · $1,200/mo
Full analysis →
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