Side-by-side comparison of Allentown, PA and Philadelphia, PA — cap rates, rent, prices, and investment metrics.
Cash flow: Allentown has the edge with an estimated cap rate of 4.28% compared to Philadelphia's 4.15%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $210,000 in Allentown vs $265,000 in Philadelphia, while rents come in at $1,200/mo and $1,480/mo respectively.
Growth & appreciation: Allentown is growing faster at 0.3% annually vs Philadelphia's 0.2%. Allentown leads on home value appreciation at 2.5% per year.
Costs & risk: Property taxes are 1.38% in Allentown vs 1.36% in Philadelphia. Vacancy rates of 5.8% and 5.8% are both healthy, suggesting strong tenant demand in both markets.
Bottom line: Allentown edges out Philadelphia on most key metrics. While cap rates are moderate at 4.28%, Allentown's overall profile is stronger. Use our free calculators to model specific deals in Allentown or Philadelphia.