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Bethlehem vs Harrisburg for Rental Property Investing

Side-by-side comparison of Bethlehem, PA and Harrisburg, PA — cap rates, rent, prices, and investment metrics.

Bethlehem wins 4–3 across key metrics
Harrisburg leads on cash flow (5.18% vs 3.95% cap rate) · Bethlehem leads on population growth
Metric
Bethlehem, PA
Harrisburg, PA
Est. Cap Rate
3.95%
5.18%
Median Home Price
$245,000
$155,000
Median Monthly Rent
$1,320
$1,020
1% Rule
0.54%
0.66%
GRM
15.5x
12.7x
Price / Income
4.7x
4.0x
Property Tax Rate
1.36%
1.4%
Vacancy Rate
5.5%
6.5%
Population Growth
0.3% / yr
0.1% / yr
Annual Appreciation
2.5%
2.2%
Population
76,000
50,000
Median Income
$52,400
$38,400

Bethlehem vs Harrisburg: Which Is Better for Investors?

Cash flow: Harrisburg has the edge with an estimated cap rate of 5.18% compared to Bethlehem's 3.95%. Neither city passes the 1% rule outright, so deal sourcing and value-add strategies become more important. Median home prices are $245,000 in Bethlehem vs $155,000 in Harrisburg, while rents come in at $1,320/mo and $1,020/mo respectively.

Growth & appreciation: Bethlehem is growing faster at 0.3% annually vs Harrisburg's 0.1%. Bethlehem leads on home value appreciation at 2.5% per year.

Costs & risk: Property taxes are 1.36% in Bethlehem vs 1.4% in Harrisburg. Vacancy rates of 5.5% and 6.5% are mixed — Bethlehem has the tighter rental market.

Bottom line: Bethlehem edges out Harrisburg on most key metrics. While cap rates are moderate at 3.95%, Bethlehem's overall profile is stronger. Use our free calculators to model specific deals in Bethlehem or Harrisburg.

Bethlehem, PA
3.95% cap rate · $245,000 median · $1,320/mo
Full analysis →
Harrisburg, PA
5.18% cap rate · $155,000 median · $1,020/mo
Full analysis →
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