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Lancaster vs York for Rental Property Investing

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

Lancaster wins 4–3 across key metrics
York leads on cash flow (2.91% vs 2.42% cap rate) · Lancaster leads on population growth
Metric
Lancaster, PA
York, PA
Est. Cap Rate
2.42%
2.91%
Median Home Price
$375,000
$300,000
Median Monthly Rent
$1,510
$1,360
1% Rule
0.40%
0.45%
GRM
20.7x
18.4x
Price / Income
8.5x
8.2x
Property Tax Rate
1.35%
1.38%
Vacancy Rate
5.5%
6.5%
Population Growth
0.4% / yr
0.1% / yr
Annual Appreciation
2.6%
2.2%
Population
64,000
45,000
Median Income
$44,200
$36,800

Lancaster vs York: Which Is Better for Investors?

Cash flow: York has the edge with an estimated cap rate of 2.91% compared to Lancaster's 2.42%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $375,000 in Lancaster vs $300,000 in York, while rents come in at $1,510/mo and $1,360/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Lancaster is growing faster at 0.4% annually vs York's 0.1%. Lancaster leads on home value appreciation at 2.6% per year.

Costs & risk: Property taxes are 1.35% in Lancaster vs 1.38% in York. Vacancy rates of 5.5% and 6.5% are mixed — Lancaster has the tighter rental market.

Entry point: York offers a lower entry at $300K vs Lancaster's $375K — a difference of $75K. With a 20% down payment, that's $60K vs $75K. York combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Lancaster edges out York on most key metrics. While cap rates are moderate at 2.42%, Lancaster's overall profile is stronger. Use our free calculators to model specific deals in Lancaster or York.

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Lancaster, PA
2.42% cap rate · $375,000 median · $1,510/mo
Full analysis →
York, PA
2.91% cap rate · $300,000 median · $1,360/mo
Full analysis →

Frequently Asked Questions

Is Lancaster or York better for rental investing?
Lancaster wins 4–3 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Lancaster's 2.42% cap rate and $375K median price edge out York's 2.91% at $300K.
What is the cap rate difference between Lancaster and York?
Lancaster has a 2.42% cap rate vs York's 2.91% — a difference of 0.49 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?
Lancaster has lower property taxes at 1.35% vs 1.38%. On a $338K property, that's a difference of approximately $923/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Lancaster is growing at 0.4% annually vs York's 0.1%. Both cities have slow growth — focus on the strongest neighborhoods. Lancaster's appreciation rate of 2.6% also leads on home value growth.

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