Long-Term Rentals · Market playbook

Buying Rental Properties in Philadelphia, PA

Buying rentals in Philadelphia is a 9.22% gross yield play at a $234k median entry — $1,797/mo rent gross before expenses. The math has to clear before the property does.

DATA · Zillow Research (via scrape.do) · AS OF APRIL 2026

Strong 91/100

Philadelphia is one of the better buy-and-hold rental markets in the country right now.

TL;DR — data signals

→ Gross yield 9.22% — above national baseline
→ Rent $1,797/mo vs. national $1,930 — rent-normal
→ Cash flow expectation at 25% down / 7.5%: $200-400/door positive
→ Appreciation: flat — neutral

Long-term rentals in Philadelphia sit at the intersection of two numbers: typical home value $233,814 and median rent $1,797/mo. That's a 9.22% gross yield — well above the national 4-5% baseline. Cash flow does most of the heavy lifting here, with appreciation as a bonus.

Run the cash-flow math. Assume 20-25% down on a 30-year conventional rental loan at 7.5%, plus taxes + insurance + 8% property management + 8% vacancy/maintenance reserve + 8% capex reserve. At those inputs you should clear $200-400/door positive cash flow on a well-bought property in Philadelphia. The numbers work without heroic assumptions.

Rent demand context: Philadelphia rents ($1,797) are within 10% of the national median. Neither a rent tailwind nor headwind; the deal lives or dies on acquisition.

Appreciation thesis: Philadelphia home values are +1.5% YoY. Flat appreciation. Returns come from cash flow + pay-down + tax benefits, not price growth. Underwrite to that reality.

Net: Philadelphia is a viable buy-and-hold rental market — yield does the work, appreciation is a bonus.

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Philadelphia at a glance