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Scranton vs Allentown for Rental Property Investing

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

Allentown wins 4–3 across key metrics
Scranton leads on cash flow (4.37% vs 3.54% cap rate) · Allentown leads on population growth
Metric
Scranton, PA
Allentown, PA
Est. Cap Rate
4.37%
3.54%
Median Home Price
$220,000
$350,000
Median Monthly Rent
$1,300
$1,770
1% Rule
0.59%
0.51%
GRM
14.1x
16.5x
Price / Income
5.5x
8.2x
Property Tax Rate
1.44%
1.38%
Vacancy Rate
6.8%
5.8%
Population Growth
-0.2% / yr
0.3% / yr
Annual Appreciation
1.9%
2.5%
Population
76,089
126,092
Median Income
$40,200
$42,800

Scranton vs Allentown: Which Is Better for Investors?

Cash flow: Scranton has the edge with an estimated cap rate of 4.37% compared to Allentown's 3.54%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $220,000 in Scranton vs $350,000 in Allentown, while rents come in at $1,300/mo and $1,770/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Allentown is growing faster at 0.3% annually, while Scranton is losing population. Allentown leads on home value appreciation at 2.5% per year.

Costs & risk: Property taxes are 1.44% in Scranton vs 1.38% in Allentown. Vacancy rates of 6.8% and 5.8% are mixed — Allentown has the tighter rental market.

Entry point: Scranton offers a lower entry at $220K vs Allentown's $350K — a difference of $130K. With a 20% down payment, that's $44K vs $70K. Scranton combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Allentown edges out Scranton on most key metrics. While cap rates are moderate at 3.54%, Allentown's overall profile is stronger. Use our free calculators to model specific deals in Scranton or Allentown.

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Scranton, PA
4.37% cap rate · $220,000 median · $1,300/mo
Full analysis →
Allentown, PA
3.54% cap rate · $350,000 median · $1,770/mo
Full analysis →

Frequently Asked Questions

Is Scranton or Allentown better for rental investing?
Allentown wins 4–3 across our 7 key metrics. Allentown's 3.54% cap rate and $350K median price give it the edge overall.
What is the cap rate difference between Scranton and Allentown?
Scranton has a 4.37% cap rate vs Allentown's 3.54% — a difference of 0.83 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?
Allentown has lower property taxes at 1.38% vs 1.44%. On a $285K property, that's a difference of approximately $1,662/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Allentown is growing at 0.3% annually vs Scranton's -0.2%. Both cities have slow growth — focus on the strongest neighborhoods. Allentown's appreciation rate of 2.5% also leads on home value growth.

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