Pottsville, PA Cap Rate 6.26%
Pottsville is one of the most affordable markets in the country in the Northeast with a small but investable metro of 50,000. At a 6.26% estimated cap rate, this is a solid market where rents of $1,160/mo lag behind home prices. With a median home price of $155,000 and population is roughly stable, Pottsville stands out as a market worth serious analysis for rental investors.
Market data powered by Zillow Home Value Index (ZHVI) and Zillow Observed Rent Index (ZORI) · Updated Feb 2026
Market Data
2026 Market Update: Pottsville
Pottsville's 0.7% rent-to-price ratio is well below the 1% rule. At median prices of $155,000, the $1,160/mo rent produces only $809/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 ($31K at 7%) would result in approximately $-16/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.
The 11.1x gross rent multiplier and 6% vacancy rate position Pottsville as a value-oriented market. With annual appreciation at 2.3%, total returns (cash flow + equity growth) run approximately 8.6% before financing leverage.
Deal Modeling & Scenarios for Pottsville
All figures below are computed from Pottsville's real market medians. Use them as a baseline; override with property-specific numbers in the calculators.
Property Tax Bill in Real Dollars
At 1.38% effective rate on the $155,000 median price, the annual tax bill is $2,139 — that's above national average (+30% vs the national average of ~1.06%). Verify the actual assessed value before purchase; sale-triggered reassessments can push the bill higher than the seller's current statement.
5-Year Cap Rate Trajectory
If Pottsville continues appreciating at 2.3%/yr while rents grow at a conservative 3%/yr, cap rate holds roughly steady as price growth outpaces rent. Year-by-year projection at the median:
| Year | Est. Price | Est. Rent/Mo | Cap Rate |
|---|---|---|---|
| Today | $155K | $1,160 | 6.3% |
| Year 1 | $159K | $1,195 | 6.3% |
| Year 2 | $162K | $1,231 | 6.3% |
| Year 3 | $166K | $1,268 | 6.4% |
| Year 4 | $170K | $1,306 | 6.4% |
| Year 5 | $174K | $1,345 | 6.5% |
Three Financing Scenarios
Same median-priced Pottsville property — different capital structures. All-cash maximizes cap rate. Leverage trades cash flow for higher cash-on-cash return when the spread between cap rate and borrowing cost is positive.
| Scenario | Cash Invested | Monthly Cash Flow | Annual CF | Cash-on-Cash |
|---|---|---|---|---|
| All cash | $155K | $809 | $9,706 | 6.3% |
| 20% down conventional @ 7% | $36K | $-16 | $-189 | -0.5% |
| 25% down DSCR @ 8.5% | $45K | $-85 | $-1,022 | -2.3% |
Three Price Tiers: Below, At, and Above the Median
Properties don't always trade at the median. Lower-priced units typically offer higher cap rates but harder operations; higher-priced properties tend to compress cap rates while attracting better tenants. All-cash assumptions below:
| Tier | Price | Rent/Mo | NOI/Yr | Cap Rate | Monthly CF |
|---|---|---|---|---|---|
| Below median (~75% price) | $116K | $986 | $7,160 | 6.2% | $597 |
| At median | $155K | $1,160 | $8,099 | 5.2% | $675 |
| Above median (~125% price) | $194K | $1,334 | $9,037 | 4.7% | $753 |
Total Return Over a 5-Year Hold
Cap rate is just one piece. Real estate returns come from four sources: cash flow, appreciation, principal paydown, and tax benefits. Assuming 20% down conventional financing at 7% and a 5-year hold at Pottsville's historical appreciation rate of 2.3%:
On a $31K down payment, that's a 87.2% total ROI over 5 years (not annualized). Tax benefits from depreciation are additional and depend on your personal tax bracket.
Risk Flags Specific to Pottsville
Automated checks against the underlying data — surface only the risks that actually apply to Pottsville, not generic boilerplate:
Cap Rate Calculator — Pottsville
Pre-filled with Pottsville medians. Adjust to match a specific property.
Cash-on-Cash Return — Pottsville
Factor in financing to see your actual return on invested capital in Pottsville.
Is Pottsville a Good Place to Invest in Rental Property?
Pottsville, 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 $155,000 paired with median rents of $1,160/mo produces an estimated cap rate of 6.26%.
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 3.2x, homes cost about 3.2 times the local median income of $47,800. 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 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: Pottsville offers attractive fundamentals for rental investors. and cap rates above 6% put it in the upper tier of investable markets.