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Reading vs Scranton for Rental Property Investing

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

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Reading wins 4–3 across key metrics
Scranton leads on cash flow (4.37% vs 3.24% cap rate) · Reading leads on population growth
Metric
Reading, PA
Scranton, PA
Est. Cap Rate
3.24%
4.37%
Median Home Price
$300,000
$220,000
Median Monthly Rent
$1,460
$1,300
1% Rule
0.49%
0.59%
GRM
17.1x
14.1x
Price / Income
8.6x
5.5x
Property Tax Rate
1.42%
1.44%
Vacancy Rate
6.5%
6.8%
Population Growth
0.1% / yr
-0.2% / yr
Annual Appreciation
2.2%
1.9%
Population
95,550
76,089
Median Income
$34,800
$40,200

Reading vs Scranton: Which Is Better for Investors?

Cash flow: Scranton has the edge with an estimated cap rate of 4.37% compared to Reading's 3.24%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $300,000 in Reading vs $220,000 in Scranton, while rents come in at $1,460/mo and $1,300/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Reading is growing faster at 0.1% annually, while Scranton is losing population. Reading leads on home value appreciation at 2.2% per year.

Costs & risk: Property taxes are 1.42% in Reading vs 1.44% in Scranton. Vacancy rates of 6.5% and 6.8% are mixed — Reading has the tighter rental market.

Entry point: Scranton offers a lower entry at $220K vs Reading's $300K — a difference of $80K. With a 20% down payment, that's $44K vs $60K. Scranton combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Reading edges out Scranton on most key metrics. While cap rates are moderate at 3.24%, Reading's overall profile is stronger. Use our free calculators to model specific deals in Reading or Scranton.

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Reading, PA
3.24% cap rate · $300,000 median · $1,460/mo
Full analysis →
Scranton, PA
4.37% cap rate · $220,000 median · $1,300/mo
Full analysis →

Frequently Asked Questions

Is Reading or Scranton better for rental investing?
Reading wins 4–3 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Reading's 3.24% cap rate and $300K median price edge out Scranton's 4.37% at $220K.
What is the cap rate difference between Reading and Scranton?
Reading has a 3.24% cap rate vs Scranton's 4.37% — a difference of 1.13 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?
Reading has lower property taxes at 1.42% vs 1.44%. On a $260K property, that's a difference of approximately $1,092/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Reading is growing at 0.1% annually vs Scranton's -0.2%. Both cities have slow growth — focus on the strongest neighborhoods. Reading's appreciation rate of 2.2% also leads on home value growth.

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