What's a good cap rate in Allentown?

In Allentown, cap rates typically run around 7.0% (Pennsylvania state median). A deal above that line is outperforming the local market; below it, you're paying up for appreciation or stability. TrueCap shows where any specific Allentown deal lands versus this benchmark.

What's the average rent for a rental in Allentown?

A typical rental in Allentown runs about $1,634–$2,087/mo (HUD Fair Market Rent, 2–3BR). TrueCap auto-fills HUD Fair Market Rent for the exact address you enter.

What is the property tax rate in Pennsylvania?

Pennsylvania's effective property tax rate is about 1.49% of value per year — the figure TrueCap applies by default for Allentown deals. You can override it with the exact local rate.

Allentown, PA

Allentown rental property analysis

Allentown anchors the Lehigh Valley — a logistics-and-warehousing boom plus NYC/Philly overflow has driven steady rent growth at Pennsylvania prices.

Allentown market snapshot

Balanced market

Mid-range cap rates — cash flow and appreciation are both realistically on the table.

Typical cap rate

7.0%

Pennsylvania state median

Typical rent

$1,634–$2,087/mo

HUD FMR · 2–3BR · 2026

Typical price

$220,000–$310,000

est., all-in

Property tax

1.49%

Pennsylvania effective

Rent is HUD Fair Market Rent where available, otherwise a market estimate; price is a market estimate. Cap-rate and tax are the defaults TrueCap applies — enter a specific address for exact, auto-filled numbers.

Sources & methodology. These are screening defaults and market estimates — not an appraisal, and not financial, tax, or legal advice. Verify rents, taxes, insurance, and local landlord/tenant law against the county assessor and your state's landlord-tenant statute before relying on them.

Data: HUD Fair Market Rent · FRED 30-yr mortgage rate · Tax Foundation (property tax) · Updated June 2026

Metro-level estimates — precision is lower at the neighborhood and parcel level; pull a specific address for exact, auto-filled figures. Reviewed by the TrueCap team. See our full methodology.

Is Allentown a good place to buy rentals?

E-commerce warehousing jobs and metro overflow support demand and appreciation, with cash flow that still pencils. A strong PA growth-plus-yield blend.

See the full Pennsylvaniainvesting guide — taxes, landlord law & top metros →

Neighborhoods to look at in Allentown

West End

Desirable, stable, reliable tenants.

Bethlehem

Adjacent; college + steady demand.

Easton

Value-add, walkable, upside.

Neighborhood notes are starting points, not recommendations — always underwrite the specific property.

Run a Allentown deal in 60 seconds

Paste a Allentown address into TrueCap and get cap rate, cash-on-cash, DSCR, cash flow, and a 10-year projection — auto-filled with Pennsylvania tax and HUD rent so you start from the right assumptions.

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