Market Analysis

Philadelphia, PA Multifamily Market

Cap rates, rent trends, and underwriting benchmarks for Philadelphia apartment investors.

5.8%
Avg Cap Rate
5.0% – 7.0%
Cap Rate Range
1.30x
Avg DSCR
$185,000
Price / Unit
$1,500
Avg Rent / Unit
5.5%
Vacancy Rate
+2.6%
YoY Rent Growth
1,600,000
Population

Market Trend

Eds and meds employment provides stability. University City and Center City see premium rents driven by Penn, Drexel, and hospital systems. The city wage tax is a consideration for renter retention. Suburban Montgomery and Delaware counties attract families priced out of the core.

Lender Notes

Active agency and bank market. 1.20-1.25x DSCR. Philadelphia's business income and receipts tax (BIRT) impacts LLC operating costs.

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