The Complete Guide to Investing in Rental Property in Lancaster County, PA (2025)
Why Invest in Lancaster County?
Lancaster County is one of Pennsylvania’s most promising real estate markets for investors. The area combines affordability with population growth, economic stability, and a strong tenant base — making it ideal for both new and experienced rental property investors.
Market Trends and Economic Drivers
Population now exceeds 550,000 and continues to grow
Major employers include Lancaster General Health, Eurofins, Franklin & Marshall College, and Armstrong World Industries
Access to Philadelphia, Harrisburg, and Baltimore makes it attractive for commuters
Revitalized downtown areas and tourism add to demand
Local Demand for Rentals
Student housing near Millersville, Elizabethtown, and Franklin & Marshall
Workforce housing for healthcare, trades, and logistics professionals
Long-term rentals in suburbs and small towns
Short-term and mid-term rentals tied to tourism and temporary job contracts
Types of Rental Properties in Demand
Rowhomes and small multis in Lancaster City
Duplexes and triplexes in Columbia, Marietta, and Ephrata
Suburban single-family homes in Ephrata, Manheim, and Mount Joy
Small apartment buildings near downtown Lancaster or hospital campuses
Where to Invest in Lancaster County
Lancaster City (17602, 17603)
High rental demand and walkability
Lower prices but older housing stock
May require code compliance and major system updates
Ephrata
Affordable and family-oriented
Good schools and stable tenants
Primarily single-family homes
Columbia
Historically undervalued
Duplexes and triplexes ideal for BRRRR or flips
Older homes may need structural and system updates
Elizabethtown
College town with consistent demand
Strong mid-sized rental market
Competitive pricing due to limited supply
Renovation Cost Estimates (By Property Type)
Lancaster City Rowhome (1,300 sq ft)
Kitchen, bath, floors, roof
Estimated cost: $35,000–$60,000
Columbia Duplex (Full Rehab)
Electrical, plumbing, drywall, layout updates
Estimated cost: $60,000–$90,000
Ephrata Suburban Single-Family
Paint, flooring, HVAC updates
Estimated cost: $15,000–$30,000
Marietta Triplex (Per Unit Refresh)
Paint, fixtures, LVP flooring
Estimated cost: $10,000–$20,000 per unit
Note: Always include a 15% contingency in your rehab budget.
Real Deal Examples: Flip vs. BRRRR
BRRRR Example – Lancaster City Duplex
Purchase Price: $160,000
Rehab: $40,000
All-In Cost: $200,000
After-Repair Value (ARV): $275,000
Refinance (75% ARV): $206,250
Cash Out: $6,000
Monthly Rent: $1,350 x 2 = $2,700
Estimated Cash Flow: $800–$900/month
Equity Retained: ~$75,000
Flip Example – Columbia Single-Family
Purchase Price: $120,000
Rehab: $55,000
All-In Cost: $175,000
Resale Price: $235,000
Closing & Holding Costs: ~$15,000
Net Profit: ~$45,000
Timeline: 4–6 months
Taxed as short-term income
Rental Cash Flow in Lancaster County
Lancaster City
2 Bedroom: $1,350
3 Bedroom: $1,650
Columbia
2 Bedroom: $1,250
3 Bedroom: $1,500
Ephrata
2 Bedroom: $1,300
3 Bedroom: $1,600
Elizabethtown
2 Bedroom: $1,400
3 Bedroom: $1,750
Vacancy rates in the city average 5–6%, while boroughs like Ephrata or Mount Joy typically run 3–4%. Turnover costs for rentals average $750–$1,500 per unit depending on repairs and cleaning.
Comparing Mid-Term vs. Long-Term Rentals
Scenario: 2 Bedroom Furnished Apartment in Elizabethtown
Long-Term Lease
Monthly Rent: $1,400
Vacancy: ~5%
Monthly Net Cash Flow: $450–$550
Mid-Term Rental (Travel Nurse or Contract Worker)
Monthly Rent: $2,100
Vacancy: ~15%
Monthly Net Cash Flow: $700–$850
Requires furnishing ($3,000–$5,000 one-time setup)
More active management but higher ROI potential
Financing and Partnership Options
Conventional Mortgage
20–25% down
Best for long-term holds
Requires W-2 or tax return income documentation
DSCR Loans (Debt-Service Coverage Ratio)
Approval based on property’s income, not personal income
Great for scaling
Offered by Kiavi, Visio, and some local lenders
FHA Loans / House Hacking
3.5% down for owner-occupants
Live in one unit of a duplex/triplex
Ideal for new investors
Hard Money Lending
Short-term funding for flips or BRRRR deals
10–12% interest plus 2–3 points
Fast closings and less underwriting
Investor Partnerships
Equity splits between capital and active partner
Profit-sharing models based on rental income
Use an LLC and written agreement to protect both parties
Budgeting and Risk Management
Reserves
Hold back at least 6 months of expenses per property
Save 10–15% of gross rent monthly for future capital expenses
Property Management
Self-manage if you’re local and available
Third-party managers charge 8–10% of monthly rent
Local firms include Compass PM, TrueVision, and City Limits
Legal Compliance
Lead paint disclosure required on homes built before 1978
Rental registration required in Lancaster City
Eviction process begins with a 10–30 day notice, followed by a magistrate hearing
Strategy Comparison: Flip vs. BRRRR vs. Buy & Hold
Flip
Cash Upfront: ~$175,000 (purchase + rehab)
Cash Flow: None
Profit: $40,000–$60,000
No long-term equity or appreciation
Income taxed at short-term capital gains rate
BRRRR
Cash In: ~$200,000 (refinanced post-renovation)
Monthly Cash Flow: $800–$1,000
Equity: $75,000+ retained
Builds both income and long-term wealth
Buy & Hold (20% Down)
Down Payment: $60,000–$80,000
Monthly Cash Flow: $400–$600
Equity builds slowly
Low effort and scalable over time
Final Thoughts: Why Lancaster Belongs in Your Investment Portfolio
Lancaster County is one of the most stable and investor-friendly markets in Pennsylvania. Whether you’re looking to flip, house hack, BRRRR, or build a long-term portfolio, the opportunities here offer strong returns, steady tenant demand, and affordable entry points.
The key to success is knowing the submarkets, analyzing each deal carefully, and building a trusted local team.
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Read More Investor Resources
How to BRRRR in Lancaster County
Best Neighborhoods in Lancaster
Off-Market Deals in Lancaster: What You Need to Know
