Rental & Fair Market Overview – Central PA (June 2025)

 

Region: South Central PA 

Covering: Dauphin, Cumberland, Franklin, Fulton, Adams, York, Lancaster, Berks, and Lebanon Counties

Fair Market Rent Overview (HUD 2025 Benchmarks)

Unit Size	Rent Range	Notes
Studio	$850–$975	Increasing demand in Harrisburg and York City
1BR	$975–$1,200	Strong demand across all counties
2BR	$1,200–$1,450	Popular for both families and roommates
3BR	$1,500–$1,750	Steady turnover, higher cash flow potential
4BR	$1,650–$2,000+	Limited inventory = higher rent resilience

Highest rents generally appear in Lancaster, Dauphin, and York, while Fulton and Franklin trend lower but offer better cap rate potential.

Occupancy & Rental Demand

• Occupancy across the region: ~95%–97% (above national average)

• Average days on market: 28–37 days depending on zip code

• Turnover rate: Steady in LTR; STR varies seasonally

Investor Insight: Regional Themes

• STR Opportunity Zones: Gettysburg, Hershey, Downtown Lancaster, Midtown Harrisburg, and York City

• LTR Stability Zones: Reading (Berks), Carlisle (Cumberland), Harrisburg suburbs, Lebanon

• Military Impact: Fort Indiantown Gap (Lebanon), Carlisle Barracks (Cumberland)

• Cap Rates:

  • Urban multifamily: ~7.5–8.5%

  • Suburban SFR: ~6–7.5%

  • Rural STR (e.g. Fulton, Adams): ~8.5–9.5%

County-Level Investment Snapshot

County	Rent Growth YOY	Cap Rate Est.	STR Viability	Investor Notes
Dauphin	6–8%	6.5–7.5%	Moderate	Harrisburg City improving; small multis in high demand
Cumberland	5–7%	6–7%	Low	Strong suburban tenant base; good for LTR duplexes
York	6–8%	7.5–8.5%	Moderate	Affordable entry; steady STR in York City and rural boroughs
Lebanon	5–7%	6.5–7.5%	Low–Moderate	LTR strong near Good Samaritan & warehouse expansion
Lancaster	7–9%	7–8%	High	Strong appreciation + STR near Amish country & city center
Franklin	5–6%	7.5–9%	Limited	Good BRRRR options in Chambersburg
Adams	5–6%	8–9.5%	High (seasonal)	STR heavy around Gettysburg National Park
Berks	6–7%	7–8%	Moderate	Reading and suburbs offer cash flow with value-add potential

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Key Investor Trends

• Multifamily Demand Rising: Duplexes and triplexes under $250K are in short supply across Harrisburg, York, and Lebanon.
• STR Regulations Vary: Adams and Lancaster remain STR-friendly; Dauphin and Berks vary by municipality.
• Low Inventory Keeps Pressure on Rents: Most counties are experiencing sub-5% vacancies.
• Best Cash Flow Plays: York City, Reading, and Chambersburg.
• Best Appreciation Potential: Lancaster, Harrisburg, and Mechanicsburg suburbs.

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Sample ROI Targets (Conservative 2025 Estimates)

Strategy	Gross Yield Target	Markets Best Suited
BRRRR	9–12%	York, Franklin, Berks
Long-Term Buy/Hold	6.5–8%	Dauphin, Cumberland, Lebanon
STR	15–20%+ (gross)	Lancaster, Gettysburg, Hershey outskirts

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Final Takeaway

Harrisburg and its surrounding counties remain investor-friendly with healthy rent growth, diverse housing stock, and manageable price points. Whether you're growing a long-term portfolio or exploring STR arbitrage, Central PA provides a strong foundation with room to scale.

Need zip-code specific data, team referrals, or off-market leads? Let's collaborate.