30 Pennsylvania cities ranked by estimated cap rate. The average cap rate across Pennsylvania markets is 3.8%, with median home prices averaging $244K and rents averaging $1,250/mo. Pottsville leads with a 6.3% cap rate at a $155K median price. Property taxes average 1.38% across Pennsylvania markets.
Pennsylvania offers 30 investable rental markets tracked by CapRateCity. The state average cap rate of 3.8% is above the 3.81% national average, making Pennsylvania an attractive state for cash flow investors. No cities pass the 1% rule at median prices, so value-add strategies are essential.
Prices and rents: Pennsylvania home prices average $244K, which is 27% below the national average of $333K. Rents average $1,250/mo. The most affordable entry point is Johnstown at $115K, while Pottsville offers the highest cap rate at 6.3%.
Taxes and costs: Property taxes average 1.38% across Pennsylvania, above the 1.08% national average — investors should model tax expense carefully. Cranberry Twp has the lowest rate at 1.32%.Vacancy averages 6.0%, in line with national norms.
Growth outlook: Population growth across Pennsylvania averages 0.21% per year, led by Cranberry Twp at 1.5%. Home values are appreciating at 2.3% annually on average. Moderate growth provides a stable demand foundation.
Bottom line: Pennsylvania is primarily an appreciation market. Cash flow investing requires below-median purchases or value-add strategies. Consider whether the growth and appreciation potential justifies tighter margins.