Scranton is a budget-friendly market in the Northeast with a smaller market with 76,089 residents. At a 4.37% estimated cap rate, this is a moderate market where rents of $1,300/mo lag behind home prices. With a median home price of $220,000 and the population has been declining, which investors should factor into long-term projections, Scranton 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
Scranton's 0.6% rent-to-price ratio is well below the 1% rule. At median prices of $220,000, the $1,300/mo rent produces only $801/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 ($44K at 7%) would result in approximately $-369/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 20% of gross rent here — one of the highest ratios in our dataset. This significantly compresses margins and makes Scranton a market where tax-conscious underwriting is essential. Every deal should be stress-tested with potential assessment increases.
Pre-filled with Scranton medians. Adjust to match a specific property.
Factor in financing to see your actual return on invested capital in Scranton.
Scranton, PA has a population of 76,089 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 $220,000 paired with median rents of $1,300/mo produces an estimated cap rate of 4.37%.
Property taxes at 1.44% fall within the national average range and shouldn't present unusual challenges. The vacancy rate of 6.8% is moderate and within normal parameters for a healthy rental market.
At a price-to-income ratio of 5.5x, homes cost about 5.5 times the local median income of $40,200. This moderate ratio indicates a balanced rent-vs-buy market. Home values have appreciated at roughly 1.9% annually. Steady appreciation means total returns will be primarily cash flow-driven — the more sustainable model for long-term wealth building.
Bottom line: Scranton presents moderate opportunities. Cap rates near 4.37% mean deals need careful sourcing — look for value-add rehabs or emerging neighborhoods where rents are climbing.