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Somerset vs State College for Rental Property Investing

Side-by-side comparison of Somerset, PA and State College, PA — cap rates, rent, prices, and investment metrics.

Somerset wins 3–0 across key metrics
Somerset leads on cash flow (3.19% vs 3.16% cap rate)
Metric
Somerset, PA
State College, PA
Est. Cap Rate
3.19%
3.16%
Median Home Price
$170,000
$340,000
Median Monthly Rent
$810
$1,610
1% Rule
0.48%
0.47%
GRM
17.5x
17.6x
Price / Income
3.6x
7.1x
Property Tax Rate
1.38%
1.38%
Vacancy Rate
6%
6%
Population Growth
0.2% / yr
0.2% / yr
Annual Appreciation
2.3%
2.3%
Population
50,000
50,000
Median Income
$47,800
$47,800

Somerset vs State College: Which Is Better for Investors?

Cash flow: Somerset has the edge with an estimated cap rate of 3.19% compared to State College's 3.16%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $170,000 in Somerset vs $340,000 in State College, while rents come in at $810/mo and $1,610/mo respectively. For context, the national average cap rate is 3.81% and average price is $333K.

Growth & appreciation: Somerset is growing faster at 0.2% annually vs State College's 0.2%. Somerset leads on home value appreciation at 2.3% per year.

Costs & risk: Property taxes are 1.38% in Somerset vs 1.38% in State College. Vacancy rates of 6% and 6% are mixed — State College has the tighter rental market.

Entry point: Somerset offers a lower entry at $170K vs State College's $340K — a difference of $170K. With a 20% down payment, that's $34K vs $68K. Somerset combines the lower price with a higher cap rate — a compelling combination.

Bottom line: Somerset edges out State College on most key metrics. While cap rates are moderate at 3.19%, Somerset's overall profile is stronger. Use our free calculators to model specific deals in Somerset or State College.

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Somerset, PA
3.19% cap rate · $170,000 median · $810/mo
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State College, PA
3.16% cap rate · $340,000 median · $1,610/mo
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Frequently Asked Questions

Is Somerset or State College better for rental investing?
Somerset wins 3–0 across our 7 key metrics (cap rate, 1% rule, GRM, taxes, vacancy, growth, appreciation). Somerset's 3.19% cap rate and $170K median price offer both higher returns and a lower entry point.
What is the cap rate difference between Somerset and State College?
Somerset has a 3.19% cap rate vs State College's 3.16% — a difference of 0.03 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?
State College has lower property taxes at 1.38% vs 1.38%. On a $255K property, that's a difference of approximately $2,346/year in tax expense — money that goes directly to (or from) your cash flow.
Which city is growing faster?
Somerset is growing at 0.2% annually vs State College's 0.2%. Both cities have slow growth — focus on the strongest neighborhoods. Somerset's appreciation rate of 2.3% also leads on home value growth.

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