DSCR Loans in Pennsylvania
Last updated: May 2026
Pennsylvania is widely considered one of the best states in the Northeast for DSCR investing, combining affordable housing stock, a flat 3.07% income tax rate, and a landlord-friendly legal environment. Philadelphia and Pittsburgh anchor opposite ends of the state with large, diverse rental markets, while smaller cities like Allentown, Reading, and Scranton offer exceptional rent-to-price ratios. The state's preemption of local rent control gives investors regulatory certainty.
Property Tax
1.49%
State Income Tax
3.07% (flat)
Landlord Friendly
Very
Eviction Timeline
1 - 3 months
Property Taxes in Pennsylvania
Pennsylvania property taxes are collected at the county, municipal, and school district levels, creating a complex but often manageable total burden. Philadelphia's effective rate is about 1.36%, while Pittsburgh averages roughly 2.01% when combining all three taxing bodies. Allentown sits near 1.67%, and rural counties in central Pennsylvania often fall below 1.0%.
Insurance Costs
Typical investment property insurance in Pennsylvania runs $1,100 - $1,700/yr. Pennsylvania properties face relatively moderate insurance costs compared to coastal states. The primary risk factors are flash flooding in river valleys like those in the Lehigh Valley and Susquehanna Basin, and winter storm damage in the Pocono Mountains and northern tier.
Landlord-Tenant Laws
Pennsylvania is one of the most landlord-friendly states in the Northeast. There is no statewide rent control, and state law preempts municipalities from enacting it (Philadelphia is the sole exception with limited fair practices rules). Evictions for nonpayment can proceed after a 10-day notice, and the process through Magisterial District Court typically takes 30 to 45 days. There is no statutory limit on security deposits after the first year of tenancy.
Top Investment Markets in Pennsylvania
Philadelphia
Massive and diverse rental market with strong demand in University City, Fishtown, and Kensington from students and young professionals.
Pittsburgh
Tech-driven renaissance led by Carnegie Mellon and Google's robotics hub, with median prices still under $250K in most neighborhoods.
Allentown
Lehigh Valley's largest city with a booming warehouse and logistics sector along the I-78 corridor driving workforce housing demand.
Reading
Consistently strong rent-to-price ratios with median home prices under $150K and a growing Hispanic community fueling demand.
Scranton
Affordable entry point with median prices under $150K, proximity to New York, and a growing remote-worker tenant base.
DSCR Considerations in Pennsylvania
Pennsylvania is one of the most DSCR-friendly states in the region, with many cities easily supporting 1.25x or higher ratios at standard 75% LTV. The flat income tax rate and lack of rent control simplify financial modeling. Investors should be aware that Philadelphia has a local business income and receipts tax (BIRT) that applies to rental income and can affect overall returns.
Run the numbers for Pennsylvania
Use our free DSCR calculator to see if your Pennsylvania investment property pencils out.
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