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Lancaster vs Bethlehem for Rental Property Investing

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

Lancaster wins 6–0 across key metrics
Lancaster leads on cash flow (4.30% vs 3.95% cap rate)
Metric
Lancaster, PA
Bethlehem, PA
Est. Cap Rate
4.30%
3.95%
Median Home Price
$225,000
$245,000
Median Monthly Rent
$1,280
$1,320
1% Rule
0.57%
0.54%
GRM
14.6x
15.5x
Price / Income
5.1x
4.7x
Property Tax Rate
1.35%
1.36%
Vacancy Rate
5.5%
5.5%
Population Growth
0.4% / yr
0.3% / yr
Annual Appreciation
2.6%
2.5%
Population
64,000
76,000
Median Income
$44,200
$52,400

Lancaster vs Bethlehem: Which Is Better for Investors?

Cash flow: Lancaster has the edge with an estimated cap rate of 4.30% 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 $225,000 in Lancaster vs $245,000 in Bethlehem, while rents come in at $1,280/mo and $1,320/mo respectively.

Growth & appreciation: Lancaster is growing faster at 0.4% annually vs Bethlehem's 0.3%. Lancaster leads on home value appreciation at 2.6% per year.

Costs & risk: Property taxes are 1.35% in Lancaster vs 1.36% in Bethlehem. Vacancy rates of 5.5% and 5.5% are both healthy, suggesting strong tenant demand in both markets.

Bottom line: Lancaster edges out Bethlehem on most key metrics. While cap rates are moderate at 4.30%, Lancaster's overall profile is stronger. Use our free calculators to model specific deals in Lancaster or Bethlehem.

Lancaster, PA
4.30% cap rate · $225,000 median · $1,280/mo
Full analysis →
Bethlehem, PA
3.95% cap rate · $245,000 median · $1,320/mo
Full analysis →
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