Side-by-side comparison of Philadelphia, PA and Lancaster, PA — cap rates, rent, prices, and investment metrics.
Cash flow: Philadelphia has the edge with an estimated cap rate of 3.45% 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 Philadelphia vs $375,000 in Lancaster, while rents come in at $1,860/mo and $1,510/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 Philadelphia's 0.2%. Lancaster leads on home value appreciation at 2.6% per year.
Costs & risk: Property taxes are 1.36% in Philadelphia vs 1.35% in Lancaster. Vacancy rates of 5.8% and 5.5% are both healthy, suggesting strong tenant demand in both markets.
Entry point: Philadelphia offers a lower entry at $375K vs Lancaster's $375K — a difference of $0. With a 20% down payment, that's $75K vs $75K. Philadelphia combines the lower price with a higher cap rate — a compelling combination.
Bottom line: Lancaster edges out Philadelphia 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 Philadelphia or Lancaster.