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Pittsburgh vs Lancaster for Rental Property Investing

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

Lancaster wins 4–3 across key metrics
Pittsburgh leads on cash flow (5.27% vs 2.42% cap rate) · Lancaster leads on population growth
Metric
Pittsburgh, PA
Lancaster, PA
Est. Cap Rate
5.27%
2.42%
Median Home Price
$220,000
$375,000
Median Monthly Rent
$1,450
$1,510
1% Rule
0.66%
0.40%
GRM
12.6x
20.7x
Price / Income
4.2x
8.5x
Property Tax Rate
1.36%
1.35%
Vacancy Rate
6%
5.5%
Population Growth
0.2% / yr
0.4% / yr
Annual Appreciation
2.3%
2.6%
Population
302,971
64,000
Median Income
$52,800
$44,200

Pittsburgh vs Lancaster: Which Is Better for Investors?

Cash flow: Pittsburgh has the edge with an estimated cap rate of 5.27% 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 $220,000 in Pittsburgh vs $375,000 in Lancaster, while rents come in at $1,450/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 Pittsburgh's 0.2%. Lancaster leads on home value appreciation at 2.6% per year.

Costs & risk: Property taxes are 1.36% in Pittsburgh vs 1.35% in Lancaster. Vacancy rates of 6% and 5.5% are mixed — Lancaster has the tighter rental market.

Entry point: Pittsburgh offers a lower entry at $220K vs Lancaster's $375K — a difference of $155K. With a 20% down payment, that's $44K vs $75K. Pittsburgh combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Lancaster edges out Pittsburgh 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 Pittsburgh or Lancaster.

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Pittsburgh, PA
5.27% cap rate · $220,000 median · $1,450/mo
Full analysis →
Lancaster, PA
2.42% cap rate · $375,000 median · $1,510/mo
Full analysis →

Frequently Asked Questions

Is Pittsburgh or Lancaster better for rental investing?
Lancaster wins 4–3 across our 7 key metrics. Lancaster's 2.42% cap rate and $375K median price give it the edge overall.
What is the cap rate difference between Pittsburgh and Lancaster?
Pittsburgh has a 5.27% cap rate vs Lancaster's 2.42% — a difference of 2.86 percentage points. This is a significant gap that meaningfully impacts cash flow. For context, the national average is 3.81%.
Which city has lower property taxes?
Lancaster has lower property taxes at 1.35% vs 1.36%. On a $298K property, that's a difference of approximately $2,071/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 Pittsburgh's 0.2%. 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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