East Stroudsburg, PA Cap Rate: 4.78% — Rental Property Analysis
East Stroudsburg is a mid-range market in the Northeast with a small but investable metro of 50,000. At a 4.78% estimated cap rate, this is a moderate market where rents of $1,850/mo lag behind home prices. With a median home price of $300,000 and population is roughly stable, East Stroudsburg offers opportunities for investors who source deals carefully.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
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Moderate — source deals carefully
Based on $300,000 median price and $1,850/mo median rent
Est. Cap Rate
4.78%
1% Rule
0.62%
Fails
GRM
13.5x
Price / Income
6.3x
Market Data
Median Home Price$300,000
Median Monthly Rent$1,850
Property Tax Rate1.38%
Population50,000
Population Growth0.2% / yr
Median Household Income$47,800
Vacancy Rate6%
Annual Appreciation2.3%
2026 Market Update: East Stroudsburg
East Stroudsburg's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $300,000, the $1,850/mo rent produces only $1,194/mo in NOI. Investors here need to target below-median properties or pursue value-add strategies to make the numbers work.
At current rates, a 20% down conventional loan ($60K at 7%) would result in approximately $-402/mo cash flow — negative at median prices. Larger down payments, seller financing, or buying 15–25% below median are strategies to turn the numbers positive.
Property taxes consume 19% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes East Stroudsburg a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Cap Rate Calculator — East Stroudsburg
Pre-filled with East Stroudsburg medians. Adjust to match a specific property.
Property Details
$
$
3–8% typical
%
Monthly Expenses
1.38% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
3.84%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$11,532
net operating income
Gross Rent Multiplier
13.5x
Good (<15)
1% Rule
0.62%
✗ Fails
Monthly Cash Flow
$961
before debt service
Annual Breakdown
Gross Rental Income$22,200
Less Vacancy−$1,332
Effective Income$20,868
Less Operating Expenses−$9,336
Net Operating Income$11,532
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Factor in financing to see your actual return on invested capital in East Stroudsburg.
$
$75,000
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-5.63%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$84,000
$75,000 down + $9,000 closing
Monthly Mortgage
$1,467
on $225K loan
Monthly Cash Flow
$-394
after all expenses
Annual Cash Flow
$-4,726
before taxes
Cash Flow Breakdown
Monthly Rent$1,850
Less Expenses−$777
Less Mortgage−$1,467
Monthly Cash Flow$-394
Is East Stroudsburg a Good Place to Invest in Rental Property?
East Stroudsburg, PA has a population of 50,000 and has been growing at 0.2% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $300,000 paired with median rents of $1,850/mo produces an estimated cap rate of 4.78%.
Property taxes at 1.38% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 6.3x, homes cost about 6.3 times the local median income of $47,800. This elevated ratio means homeownership is stretched, supporting rental demand but limiting buyer pools. Home values have appreciated at roughly 2.3% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: East Stroudsburg presents moderate opportunities. Cap rates near 4.78% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.
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