House Hacking Investing in Philadelphia, PA

House Hack Score: 4.1/10Ranked #37 of 52 markets

Data-driven house hacking analysis for Philadelphia, PA — score breakdown, key investment metrics, and how it compares to other markets.

Last updated: May 2026

Score Breakdown

House Hack Score:4.1
Affordable Entry Price(30%)
$240,0006.5
Rent-to-Price Ratio(25%)
0.63%3.6
Low Vacancy(20%)
9.5%3.1
Population Growth(15%)
-0.8%1.6
Livability (Income)(10%)
$60,6983.8

Key Metrics for House Hacking

Median Price

$240,000

FHA 3.5% down: $8,400

Median Rent

$1,500/mo

Per-unit rental income

Vacancy Rate

9.5%

Elevated

Pop. Growth

-0.8%

5-year trend

House Hacking Investment Thesis

Philadelphia offers good rent-to-price ratios for a major East Coast city. The university corridor (UPenn, Drexel, Temple) provides reliable tenant demand. Watch for the city wage tax impact on tenant affordability.

How Philadelphia Compares

RankCityHouse Hack ScoreCap RateMedian Price
#34Salt Lake City, UT4.45.4%$420,000
#35Phoenix, AZ4.34.9%$385,000
#36Richmond, VA4.16.2%$280,000
#37Philadelphia, PA4.15.6%$240,000
#38St. Louis, MO4.07.4%$165,000
#39Nashville, TN4.05.2%$400,000
#40Baltimore, MD3.96.5%$180,000

Showing markets ranked near Philadelphia for this strategy.

Quick Math: Estimated Annual Return

Annual Gross Rent ($1,500/mo)$18,000
Less: Vacancy (9.5%)-$1,710
Less: Property Tax (1.36%)-$3,264
Less: Insurance (~0.5%)-$1,200
Less: Maintenance (~1.5%)-$3,600
Estimated NOI$8,226
Implied Cap Rate3.4%

Based on median market data. Your actual returns will vary based on specific property, financing, and management costs. Always run your own analysis before investing.

Frequently Asked Questions

What is the house hack score for Philadelphia, PA?

Philadelphia, PA scores 4.1 out of 10 on our house hack score, ranking #37 out of 52 markets we track. Weighted composite: affordable entry price (30%), rent-to-price ratio (25%), low vacancy (20%), population growth (15%), livability/income (10%). Scale 0–10.

Is Philadelphia a good city for house hacking investing?

Philadelphia, PA ranks #37 for house hacking investing with a score of 4.1/10. While not a top-ranked market for this strategy, it may have strengths in other investing approaches.

What is the average cap rate in Philadelphia?

The average cap rate in Philadelphia, PA is 5.6%. The median home price is $240,000 with a median monthly rent of $1,500, resulting in a rent-to-price ratio of 0.63%.

What are the property taxes in Philadelphia?

The effective property tax rate in Philadelphia, PA is 1.36%. On a $240,000 property, that translates to approximately $3,264 per year in property taxes.

How does Philadelphia compare to other house hacking markets?

Among our 52 tracked markets, Philadelphia, PA ranks #37 for house hacking investing. Other markets may be stronger for this particular strategy, though it may excel in different approaches.

Can I FHA-finance a house hack in Philadelphia?

With a median home price of $240,000, most 2-4 unit properties in Philadelphia, PA should fall within FHA loan limits. An FHA loan with 3.5% down would require approximately $8,400 as a down payment. Rental income from additional units (median $1,500/month each) can significantly offset your mortgage payment.

Run Your Own Numbers for Philadelphia

Use our free calculators pre-filled with Philadelphia, PA market data, or adjust the numbers for your specific deal.