Updated 2026 · Based on median market data for Philadelphia, PA
The median monthly rent in Philadelphia, PA is $1,480, translating to $17,760 in annual gross rental income per unit. The rent-to-price ratio is 0.56% — well below the 1% rule, making pure cash flow investing challenging at median prices.
Renters in Philadelphia spend approximately 34% of the local median household income ($52,800) on rent. This exceeds the standard 30% affordability threshold, suggesting rent growth may face resistance — but it also means a large portion of the population finds buying even more out of reach, supporting rental demand.
The vacancy rate in Philadelphia is 5.8%. This is a healthy vacancy rate that indicates balanced supply and demand. You should be able to find quality tenants without extended vacancies, though expect normal turnover periods of 2-4 weeks between tenants. Population growth of 0.2% annually provides stable demand.
Philadelphia's GRM (price divided by annual rent) is 14.9x. A GRM between 12-16x is moderate and typical of balanced markets. Deals can work but you need to keep expenses controlled. For comparison, the national average GRM for investment-grade rentals is approximately 13-15x.
At the median rent of $1,480/mo, a single-family rental in Philadelphia generates approximately $17,760 in gross annual income. After accounting for 5.8% vacancy ($1,030 lost), property taxes of $3,604, insurance (~$1,060), and maintenance (~$1,060), the estimated NOI is $11,006 per year, or $917/mo.