Best Places To Buy Rental Property In Pennsylvania For 2025

If you're on the hunt for the best places to buy rental property in Pennsylvania, you’re in luck. The Keystone State isn’t just about cheesesteaks and championship sports teams—it’s also a goldmine for real estate investors. Whether you're looking for affordable rental properties with strong cash flow, high-demand Airbnb hotspots, or booming college towns full of eager tenants, Pennsylvania has it all.

With a strong economy, growing job market, and rising rental demand, now is the time to invest. From the urban energy of Philadelphia and Pittsburgh to the steady appreciation of suburban and rural markets, there’s a rental strategy for every investor.

In this guide, we’ll break down why Pennsylvania is one of the best states for rental property investing, highlight 15 of the hottest markets, and answer all your burning questions about where and how to invest. Ready to find your next rental property? Let’s dive in.

Here’s what we’ll cover:

• Why Pennsylvania Is One of The Best Places To Buy Rental Property
• Top 15 Best Places To Buy Rental Property In Pennsylvania
• The Best Places To Buy Rental Property In Pennsylvania: FAQ

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Read Also: How To Buy A Rental Property With No Money

Why Pennsylvania Is One of The Best Places To Buy Rental Property

When it comes to real estate investing, Pennsylvania often flies under the radar. Everyone talks about Florida, Texas, and California, but investors who take a closer look at the Pennsylvania rental property market quickly realize the state is packed with opportunity. From the bustling streets of Philadelphia to the tech-driven economy of Pittsburgh, to the scenic and affordable markets in places like Harrisburg and Allentown, Pennsylvania is a goldmine for rental property owners.

The best part? Real estate here is affordable. Unlike high-cost states where investors need deep pockets to enter the market, Pennsylvania’s home prices are well below the national average, making it one of the most accessible markets in the country for building a rental portfolio. Whether you’re an experienced investor looking for steady appreciation or a newcomer searching for high-cash-flow properties, Pennsylvania offers something for everyone.

Another huge plus? Steady rental demand. The low homeownership rate in key Pennsylvania cities means there’s a consistent pool of renters, whether it’s students, young professionals, or retirees. With strong job growth, high rental demand, and multiple investment strategies that work well across the state, Pennsylvania continues to solidify itself as one of the best places to buy rental property in 2025.

Here’s why investors are rushing to buy rental properties in Pennsylvania:

• Affordable Property Prices With High ROI Potential
• Lower Property Taxes Than Neighboring States
• Thriving Healthcare & Tech Sectors Driving Housing Demand
• High Rental Demand & Population Growth in Key Areas
• Strong Appreciation in Key Markets
• Growing Popularity for Remote Workers

Affordable Property Prices With High ROI Potential

Investing in Pennsylvania's rental property market offers a compelling combination of affordable home prices and attractive returns on investment (ROI), making it one of the best places to buy rental property in Pennsylvania.

The median home value in Pennsylvania is $265,021, reflecting a nearly 4.3% increase from the previous year. This figure remains below the national median, which stands at $355,328 in. This affordability allows investors to enter the market with a lower initial investment compared to other states.

Outside of the price of real estate, Pennsylvania's rental market offers promising returns. For instance, short-term rental markets in cities like Jim Thorpe and Erie have average gross yields of 15.5% and 14.6%, respectively. These figures surpass the national average gross rental yield of 6.10% reported in the third quarter of 2024.

If affordability and profit potential weren’t enough, there’s also appreciation. The state's real estate market has demonstrated consistent appreciation. The All-Transactions House Price Index for Pennsylvania rose from 638.44 in the third quarter of 2023 to 679.15 in the fourth quarter of 2024, indicating a steady increase in property values. This trend suggests potential for both immediate cash flow and long-term equity growth for investors.

Read Also: Rental Property Calculator: How To Calculate Your ROI

Lower Property Taxes Than Neighboring States

When it comes to buying rental property in Pennsylvania, one major advantage that stands out is the lower property tax rates compared to its neighboring states. For real estate investors, property taxes can take a big bite out of rental income, but in Pennsylvania, the tax burden is significantly lighter than in places like New York, Ohio, and West Virginia.

Let’s talk numbers. The effective property tax rate in Pennsylvania sits at 1.43%, which is higher than the national average (0.90%). Now, compare that to New York, where property taxes skyrocket to 1.73%—and that’s before factoring in even higher rates in some upstate counties. Meanwhile, Ohio’s effective property tax rate is 1.52%, and West Virginia’s is 0.55%—but keep in mind, West Virginia's home values and rental demand are much lower than Pennsylvania's, making the investment opportunities less attractive.

On a practical level, this means that for a $300,000 investment property, an investor in Pennsylvania would pay roughly $4,290 annually in property taxes, whereas in New York, they’d pay about $5,190—a nearly $1,000 difference every year For long-term investors, that savings can quickly add up, improving overall cash flow and ROI potential.

In addition to lower property taxes than its neighbors, Pennsylvania also offers tax relief programs that further sweeten the deal for property owners. The Homestead and Farmstead Exclusion allows homeowners (including rental property owners who qualify) to reduce their taxable home value, effectively lowering their property tax bill.

High property taxes can eat into rental income, making it harder to generate strong cash flow. But since Pennsylvania rental property investment opportunities come with a lower tax burden than in neighboring states, landlords get to keep more of their profits while still benefiting from a growing real estate market. The best places to buy rental property in Pennsylvania also tend to be located in counties with stable tax rates, which helps create predictable expenses for investors.

Thriving Healthcare & Tech Sectors Driving Housing Demand

If you’re wondering where to buy rental property in Pennsylvania, you should be paying attention to cities where job growth is booming—because where there are jobs, there’s rental demand. Pennsylvania is home to two of the strongest industries for long-term economic growth: healthcare and technology. These industries don’t just fuel employment; they also create a steady demand for housing, benefiting landlords and real estate investors looking for strong, long-term tenants.

Pennsylvania has one of the largest healthcare workforces in the country, with major hospital systems and research institutions employing hundreds of thousands of workers. The University of Pittsburgh Medical Center (UPMC) alone employs 92,000 people, making it one of the state’s top employers. Similarly, Penn Medicine, Jefferson Health, and Geisinger Health System provide high-paying, stable jobs that attract professionals who need housing near their workplaces.

For real estate investors, this translates to consistent rental demand, especially for multifamily properties, condos, and single-family homes near hospitals and medical hubs. Best places to buy rental property in Pennsylvania include Pittsburgh, Philadelphia, and Allentown—cities with major healthcare job markets and strong Pennsylvania rental property investment opportunities.

While Pennsylvania may not be Silicon Valley, it’s rapidly growing as a tech hub, especially in Pittsburgh and Philadelphia. The state is home to companies specializing in robotics, artificial intelligence, software development, and life sciences.

With an increasing number of tech professionals relocating to Pennsylvania, investors can capitalize on the rising demand for upscale rentals. Best cities to buy rental property in Pennsylvania for tech-driven appreciation include Pittsburgh, Philadelphia, and State College—each offering strong employment growth and high rental demand from young professionals.

With high-paying jobs in healthcare and tech bringing in professionals from all over the country, Pennsylvania presents a prime market for real estate investors. These industries provide stable employment, reducing the risk of vacancies and making buy-and-hold strategies even more lucrative. Investors who focus on the best places to buy rental property in Pennsylvania can benefit immensely.

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High Rental Demand & Population Growth in Key Areas

If you’re looking for the best places to buy rental property in Pennsylvania, follow the people—because where the population is growing, rental demand is booming. While some states are seeing population declines, Pennsylvania has remained one of the most stable housing markets in the Northeast. The state’s population is hovering around 12.9 million residents, and certain cities are experiencing major growth as job markets expand and more people seek affordable housing compared to nearby states like New York and New Jersey.

Take Philadelphia, for example. The city continues to attract young professionals, students, and families who prefer renting over buying, leading to strong Pennsylvania rental property investment opportunities. In fact, just a few short years ago over 47.2% of Philly’s residents rent their homes, making it an investor-friendly city with high demand. Best cities in Pennsylvania for buy-and-hold real estate investing, like Pittsburgh, Allentown, and Harrisburg, are also seeing rising rental demand thanks to economic development, revitalized downtown areas, and growing job markets.

As more people move to Pennsylvania for job opportunities, affordability, and quality of life, landlords can expect steady occupancy rates and strong rental income potential. If you’re wondering where to buy rental property in Pennsylvania, looking at high-growth cities with solid rental demand is the key to long-term success.

Strong Appreciation in Key Markets

When it comes to real estate investing, appreciation can make all the difference in long-term profitability. Fortunately, Pennsylvania has several markets where property values have been climbing steadily. Over the past five years, home prices in cities like Philadelphia, Pittsburgh, and Allentown have seen above-average appreciation rates, making them some of the best places to buy rental property in Pennsylvania for long-term equity growth. Compared to pricier East Coast states, Pennsylvania still offers affordable investment opportunities with room for continued price increases.

One reason for this strong appreciation is economic revitalization in key cities. Philadelphia is undergoing major redevelopment projects, and Pittsburgh has transformed into a thriving hub for healthcare and technology. As more jobs flow into these areas, housing demand increases, naturally driving up home values and rental prices. For investors looking to build long-term wealth, these factors make Pennsylvania’s real estate investment market an attractive choice.

Plus, Pennsylvania’s lower property taxes compared to neighboring states allow investors to keep more of their profits, further enhancing overall returns. Whether you’re interested in buy-and-hold rentals or fix-and-flip opportunities, investing in the right Pennsylvania market can offer both steady cash flow and solid appreciation for years to come.

Growing Popularity for Remote Workers

The rise of remote work has completely changed the game for rental property investors, and Pennsylvania is benefiting in a big way. With more professionals untethered from traditional office spaces, many are opting to leave expensive states like New York and New Jersey for more affordable housing options in Pennsylvania. That’s great news if you’re looking for the best places to buy rental property in Pennsylvania, as this wave of remote workers is increasing rental demand across the state.

Cities like Pittsburgh, Allentown, and Harrisburg have become hotspots for remote employees who want lower housing costs, more space, and easy access to major East Coast hubs. Unlike New York or D.C., where buying property can feel impossible, Pennsylvania offers relatively affordable real estate with strong rental income potential. Investors can capitalize on this shift by offering single-family rentals, multi-unit properties, or even short-term Airbnb stays for professionals who want the flexibility to work from anywhere.

With rising rental demand and a lower cost of living than its neighboring states, Pennsylvania’s rental property investment opportunities are only expected to grow. Remote workers aren’t just looking for housing—they’re looking for quality living at a fraction of the price, and Pennsylvania delivers exactly that.

Read Also: How To Start A Rental Property Business: A Step-By-Step Guide

Top 15 Best Places To Buy Rental Property In Pennsylvania

Pennsylvania is packed with diverse investment opportunities, from high-demand urban rentals to cash-flowing suburban properties. Whether you’re looking for long-term buy-and-hold real estate, Airbnb potential, or affordable multi-family units, this state has it all. The best places to buy rental property in Pennsylvania offer strong job markets, growing populations, and high rental demand, making them prime locations for investors. Below, we’ve compiled the top 15 Pennsylvania cities for rental property investment, breaking down what makes each market stand out.

1. Philadelphia: High renter population, booming job market, and strong appreciation.
2. Pittsburgh: Affordable real estate, steady job growth, and top-ranked rental yields.
3. Allentown: Rapidly growing population and increasing rental demand.
4. Harrisburg: Government-driven job stability and low-cost rental opportunities.
5. Scranton: Low property prices with strong cash flow potential.
6. Lancaster: Thriving healthcare industry and high demand for rental housing.
7. Bethlehem: College town with strong student and young professional rental markets.
8. Erie: Affordable housing with high rental occupancy rates.
9. Reading: Rising job market and increasing rental property values.
10. York: Strong commuter demand with excellent long-term rental potential.
11. State College: Consistently high student housing demand from Penn State.
12. Wilkes-Barre: Low home prices and steady rental cash flow.
13. Chester: Proximity to Philadelphia with high appreciation prospects.
14. Williamsport: Growing healthcare and education sectors driving rental demand.
15. Altoona: Affordable market with a mix of long-term and short-term rental opportunities.

Each of these cities presents unique advantages for rental property investors, whether you’re focused on high-yield rentals, appreciation potential, or short-term Airbnb investments. Let’s take a closer look at what makes these Pennsylvania markets prime spots for real estate investing.

Philadelphia, PA

Philadelphia is the economic powerhouse of Pennsylvania, offering real estate investors an exciting mix of strong rental demand, steady appreciation, and diverse investment opportunities. With a large renter population, thanks to its universities, corporate hubs, and affordable cost of living compared to nearby New York and Washington, D.C., the best places to buy rental property in Pennsylvania often include Philly neighborhoods. Investors can choose from high-demand multifamily properties, single-family rentals, and Airbnb-friendly short-term units in areas like Fishtown, University City, and South Philly. With ongoing urban revitalization and increasing property values, this market provides long-term stability and solid cash-flow potential.

Pittsburgh, PA

Pittsburgh is one of the best cities to buy rental property in Pennsylvania, thanks to its affordable home prices and high rental yields. The city has transitioned from its steel industry roots to a thriving tech, healthcare, and education hub, with companies like Google and UPMC fueling job growth. This steady employment base attracts young professionals and students, creating consistent rental demand. Investors looking for strong cash flow can find opportunities in neighborhoods like Lawrenceville, Bloomfield, and the South Side. With a low cost of entry and high demand for quality rentals, Pittsburgh remains a top real estate investment location in the state.

Allentown, PA

Allentown is a fast-growing city with a booming rental market, making it one of the best places in Pennsylvania for rental income properties. The city’s revitalized downtown, expanding job market, and increasing population have driven demand for rental housing. Investors can capitalize on affordable multi-family units, townhomes, and single-family rentals in neighborhoods close to major employers, hospitals, and colleges. With steady rental appreciation and strong demand from young professionals and families, Allentown presents a great opportunity for buy-and-hold investors looking for long-term returns.

Harrisburg, PA

As Pennsylvania’s state capital, Harrisburg benefits from a stable job market, thanks to government, healthcare, and education industries. This creates a reliable pool of tenants, from state employees to university students and healthcare workers, making it one of the best places to invest in rental property in Pennsylvania. Investors can find affordable properties with solid cash flow potential, particularly in areas close to downtown or near major employers. Additionally, Harrisburg’s lower cost of living and growing economy make it an attractive location for new residents, driving continued rental demand.

Scranton, PA

Scranton is a hidden gem in Pennsylvania’s rental property market. With low home prices and strong rental demand, investors can achieve impressive cash flow compared to other parts of the state. Scranton’s diverse economy, proximity to major highways, and strong community infrastructure make it a smart choice for buy-and-hold real estate investing. The best areas in Pennsylvania to buy investment property often include up-and-coming neighborhoods in Scranton, where investors can purchase multi-family units and single-family homes at affordable prices. With a steady demand for rentals and ongoing city revitalization projects, Scranton is an excellent market for investors looking to maximize their returns.

Lancaster, PA

Lancaster is one of the best places to buy rental property in Pennsylvania thanks to its strong economy, tourism industry, and growing population. Known for its blend of historic charm and modern development, Lancaster attracts families, young professionals, and retirees looking for affordable yet high-quality living. The rental market is thriving, with strong demand for single-family homes, duplexes, and multifamily units in areas close to downtown and major employment centers. Investors who capitalize on Lancaster’s affordable property prices and increasing rental rates can see solid long-term appreciation and consistent cash flow.

Bethlehem, PA

Bethlehem offers a unique investment opportunity, blending historic appeal with a revitalized economy. As part of the Lehigh Valley, the city has seen strong job growth in healthcare, education, and manufacturing, leading to a steady influx of renters. Investors looking for stable returns can find affordable single-family homes and multifamily properties in this market. Bethlehem is also one of the best cities to buy rental property in Pennsylvania due to its strong demand from students at Lehigh University and Moravian University. With its walkable downtown, arts scene, and growing economy, Bethlehem provides strong rental demand and appreciation potential for real estate investors.

Erie, PA

Erie is one of the most affordable places to invest in Pennsylvania, offering low-cost properties with high cash flow potential. The city’s economic stability, anchored by healthcare, education, and manufacturing, supports a consistent demand for rentals. Erie is also a popular destination for outdoor enthusiasts, making it a great place for short-term rentals near Lake Erie’s scenic attractions. Investors seeking affordable multifamily properties and single-family rentals can find excellent opportunities in Erie, making it one of the best areas in Pennsylvania to buy investment property.

Reading, PA

Reading is an underrated rental market offering low property prices and high rental demand, making it one of the best places in Pennsylvania for rental income properties. With a population of over 95,000, the city provides a strong pool of renters, including students, professionals, and families. Rental properties in Reading have higher-than-average yields, allowing investors to generate impressive cash flow. Affordable multifamily homes and townhouses are particularly attractive for buy-and-hold investors looking to maximize their rental returns. With its proximity to Philadelphia and ongoing downtown revitalization projects, Reading is a market worth watching.

York, PA

York is a growing market for rental property investors, offering affordable home prices and a steady rental demand. The city benefits from its strategic location between Harrisburg and Baltimore, making it a great option for commuters looking for affordable living options. York’s expanding job market in manufacturing, logistics, and healthcare continues to drive population growth, increasing the need for rental housing. Investors looking for single-family homes, townhouses, and small multifamily properties will find plenty of cash-flow opportunities here. With its low entry costs and promising long-term appreciation, York is one of the best places to buy rental property in Pennsylvania for those looking to build wealth through real estate.

State College, PA

Home to Penn State University, State College has one of the strongest rental markets in Pennsylvania, thanks to constant demand from students and faculty. The city’s low vacancy rates and premium rental pricing make it a great market for investors looking to capitalize on student housing. Multi-unit rentals and single-family homes near campus are highly sought after, and short-term rentals can also perform well during football season and university events. With the university’s continued expansion and a stable economy, State College remains one of the best places to invest in rental property in Pennsylvania.

Wilkes-Barre, PA

Wilkes-Barre is an emerging market for rental property investors, offering affordable housing and a strong demand for rentals. The city’s revitalization efforts and job growth in healthcare, education, and retail make it an attractive choice for buy-and-hold investors. With low property prices and stable rental demand, Wilkes-Barre is one of the best places to buy rental property in Pennsylvania for those looking to maximize cash flow and appreciation. The city’s proximity to Scranton and Allentown also makes it an excellent option for commuter-friendly rentals.

Chester, PA

Chester is an up-and-coming market that offers affordable real estate and strong rental demand, especially for those investing in multifamily properties. Located near Philadelphia, Chester attracts working professionals, students, and families who need access to the city but prefer lower housing costs. The city’s redevelopment projects and infrastructure improvements make it an appealing option for investors seeking high returns in an evolving market. With property prices lower than nearby metro areas, investors can generate strong cash flow while benefiting from potential appreciation. Chester is one of the best Pennsylvania cities for buy-and-hold real estate investing, particularly for those looking to maximize rental income while investing in an area with strong growth potential.

Williamsport, PA

Williamsport, best known as the home of Little League Baseball, is a hidden gem for real estate investors looking for consistent rental demand and affordable property prices. The city's economy is supported by healthcare, education, and manufacturing, making it a stable market for long-term rental properties. Investors can find affordable single-family homes and duplexes that offer attractive rental yields. With a steady population and a growing number of renters looking for quality housing, Williamsport is an excellent choice for real estate investors looking for passive income opportunities. The city’s affordable property values and strong rental market fundamentals make it one of the best places to buy rental property in Pennsylvania for those seeking long-term financial stability and growth.

Altoona, PA

Altoona is a hidden gem for investors seeking low-cost properties with strong rental potential. The city’s economy is bolstered by healthcare, rail transportation, and manufacturing, creating a steady demand for rental housing. Investors can find affordable single-family homes and multifamily units that generate consistent rental income. Altoona’s affordable cost of living and revitalized downtown area make it one of the best areas in Pennsylvania to buy investment property. As job opportunities grow, the rental market will continue to thrive, offering investors long-term stability and solid returns.

The Best Places To Buy Rental Property In Pennsylvania: FAQ

Investing in rental properties in Pennsylvania can be a great way to build wealth, but new investors often have questions about where to start. Whether you’re wondering about the most profitable rental markets or the best investment strategies, we’ve got you covered. Here are answers to some of the most frequently asked questions about the best places to buy rental property in Pennsylvania.

What are the best places to buy rental property in Pennsylvania?

The best places to buy rental property in Pennsylvania include Philadelphia, Pittsburgh, Allentown, Erie, and Harrisburg due to their strong rental demand, affordability, and job market stability. Each city offers unique investment opportunities, whether you’re looking for cash flow, appreciation, or short-term rental income.

Where can I find the highest rental income in Pennsylvania?

Cities like Philadelphia, Pittsburgh, and Allentown offer some of the highest rental incomes in Pennsylvania, thanks to high demand and strong job markets. These cities attract young professionals, students, and families, ensuring a steady stream of renters for landlords.

Is Pennsylvania a good state for real estate investing?

Yes, Pennsylvania is considered one of the best states for real estate investing due to its affordable home prices, strong rental markets, and investor-friendly property tax rates. The state’s diverse economy and growing job sectors help sustain long-term rental demand.

Which Pennsylvania cities have the best cash flow potential for rental properties?

Cities like Erie, Scranton, and Reading offer some of the best cash flow opportunities, as property prices are low compared to rental income potential. Investors can achieve higher rental yields in these areas due to lower property taxes and high rental demand.

What are the best Pennsylvania cities for real estate appreciation?

Markets such as Pittsburgh, Philadelphia, and Lancaster have shown consistent property value appreciation over the years. These cities benefit from strong job growth, increasing population, and revitalization efforts, making them excellent choices for long-term property investments.

Is short-term rental investing profitable in Pennsylvania?

Yes, cities like Philadelphia, Pittsburgh, and Lancaster are among the best places to buy rental property in Pennsylvania for Airbnb. These locations attract tourists, business travelers, and students, providing strong occupancy rates and attractive short-term rental income potential.

What are the property tax rates for rental properties in Pennsylvania?

Pennsylvania’s property tax rates vary by county, but they are generally lower than those in neighboring states like New York and New Jersey. Cities like Pittsburgh and Erie tend to have more favorable tax conditions for landlords, making them ideal locations for rental property investments.

How much do I need to invest in a rental property in Pennsylvania?

The median home price in Pennsylvania is lower than the national average, making it one of the most affordable states to buy rental properties. Investors can find opportunities ranging from budget-friendly single-family homes to higher-end multifamily units, depending on their investment goals.

What are the best areas in Pennsylvania for student rental properties?

College towns like State College, Pittsburgh, and Philadelphia have a high demand for student housing, making them great places for rental property investments. With a steady stream of students each year, investors can maintain consistent rental income with minimal vacancy rates.

How do I choose the right city for my rental property investment?

When selecting the best places to buy rental property in Pennsylvania, consider factors like rental demand, job growth, property taxes, and local market trends. Researching these factors will help ensure long-term profitability and success as a real estate investor.

Final Thoughts On The Best Places To Buy Rental Property In Pennsylvania

Investing in the best places to buy rental property in Pennsylvania can be a game-changer for investors looking to build long-term wealth. With affordable home prices, strong rental demand, and promising appreciation in key markets, Pennsylvania offers exceptional opportunities for both cash flow and long-term equity growth. Whether you're targeting high-yield rental markets, college towns, or growing metro areas, choosing the right city can maximize your returns. With the right strategy, investing in Pennsylvania real estate can provide consistent rental income and long-term financial security.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.