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Cap Rate Analysis: Erie, PA

Investment metrics, interactive calculators, and data-driven analysis for Erie rental properties.

Moderate — source deals carefully
Based on $135,000 median price and $880/mo median rent
Est. Cap Rate
5.07%
1% Rule
0.65%
Fails
GRM
12.8x
Price / Income
3.5x

Market Data

Median Home Price$135,000
Median Monthly Rent$880
Property Tax Rate1.4%
Population94,000
Population Growth-0.4% / yr
Median Household Income$38,200
Vacancy Rate7%
Annual Appreciation1.7%

Cap Rate Calculator — Erie

Pre-filled with Erie medians. Adjust to match a specific property.

Property Details
$
$
3–8% typical
%
Monthly Expenses
1.4% rate
$
$
8–10% of rent
$
8–12% of rent
$
Cap Rate
4.07%Low
Net Operating Income ÷ Purchase Price
NOI / Year
$5,489
net operating income
Gross Rent Multiplier
12.8x
Good (<15)
1% Rule
0.65%
✗ Fails
Monthly Cash Flow
$457
before debt service
Annual Breakdown
Gross Rental Income$10,560
Less Vacancy−$739
Effective Income$9,821
Less Operating Expenses−$4,332
Net Operating Income$5,489

Cash-on-Cash Return — Erie

Factor in financing to see your actual return on invested capital in Erie.

$
$33,750
%
%
years
$
taxes + ins + maint + mgmt
$
$
Cash-on-Cash Return
-4.76%Weak
Annual Cash Flow ÷ Total Cash Invested
Total Cash Invested
$37,800
$33,750 down + $4,050 closing
Monthly Mortgage
$660
on $101K loan
Monthly Cash Flow
$-150
after all expenses
Annual Cash Flow
$-1,801
before taxes
Cash Flow Breakdown
Monthly Rent$880
Less Expenses−$370
Less Mortgage−$660
Monthly Cash Flow$-150

Is Erie a Good Place to Invest in Rental Property?

Erie, PA has a population of 94,000 and has been growing at -0.4% annually — roughly in line with national trends, meaning demand is stable but not exceptional. The median home price of $135,000 paired with median rents of $880/mo produces an estimated cap rate of 5.07%.

Property taxes at 1.4% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 7% runs above average, which increases cash flow volatility and warrants conservative underwriting.

At a price-to-income ratio of 3.5x, homes cost about 3.5 times the local median income of $38,200. This relatively affordable ratio suggests a deep pool of renters who find buying out of reach, supporting rental demand. Home values have appreciated at roughly 1.7% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.

Bottom line: Erie presents moderate opportunities. Cap rates near 5.07% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.

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