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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 SizeRent RangeNotes
Studio$850–$975Increasing demand in Harrisburg and York City
1BR$975–$1,200Strong demand across all counties
2BR$1,200–$1,450Popular for both families and roommates
3BR$1,500–$1,750Steady 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

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.

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

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.

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