Side-by-side comparison of Philadelphia, PA and Lancaster, PA — cap rates, rent, prices, and investment metrics.
Cash flow: Lancaster has the edge with an estimated cap rate of 4.30% 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 $265,000 in Philadelphia vs $225,000 in Lancaster, while rents come in at $1,480/mo and $1,280/mo respectively.
Growth & appreciation: Lancaster is growing faster at 0.4% annually vs Philadelphia's 0.2%. Lancaster leads on home value appreciation at 2.6% per year.
Costs & risk: Property taxes are 1.36% in Philadelphia vs 1.35% in Lancaster. Vacancy rates of 5.8% and 5.5% are both healthy, suggesting strong tenant demand in both markets.
Bottom line: Lancaster edges out Philadelphia 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 Philadelphia or Lancaster.