Short answer: In Philadelphia, PA, the median home value is $253,600 and the median 3-bedroom rents for $1,573/mo (Census ACS 2024). That's a rent-to-price ratio of 0.62%, so it misses the 1% rule and ranks #8 of the 50 largest US rental markets. With 20% down at 7.40%, FirstDoor scores a median-priced home Pass (−$396/mo cash flow).
Key numbers
The 1% rule in Philadelphia
The 1% rule says monthly rent should be at least 1% of the price. Here's how Philadelphia compares.
Across all rentals (not just 3-bedrooms) the ratio is 0.59%. A home renting for the median 3-bedroom rent would need to cost about $157,000 or less to pass.
A typical Philadelphia home, scored
We took a home at the median value, gave it the median 3-bedroom rent, and ran it through the same math as the FirstDoor calculator: 20% down, a 30-year loan at 7.40%, the city's median tax rate, and standard expense budgets.
| 3-bedroom rent (median) | $1,573 |
| Property tax ($2,100/yr, local median) | −$175 |
| Insurance ($1,270/yr, assumed) | −$106 |
| Vacancy 5% · Maintenance 5% · Management 8% | −$283 |
| Net operating income | $1,009 |
| Mortgage (P&I on $202,880 at 7.40%) | −$1,405 |
| Monthly cash flow | −$396 |
What price works in Philadelphia?
Same rent, different prices. Here's the most you could pay in Philadelphia for each result, keeping the median 3-bedroom rent and local tax rate.
Takeaways
- A 0.62% rent-to-price ratio puts Philadelphia in the middle of the pack (#8 of 50). Expect to hunt for below-median prices to make the numbers work.
- A median-priced home here would cost you about $396/mo out of pocket after the mortgage and every expense. To break even you'd need to pay about $194,000, 24% below the median.
- Rents (+3.6%) and home values (+2.8%) moved roughly together from 2023 to 2024, so the ratio barely changed.
- Renters already spend a median 32.7% of income on rent, so don't count on big rent increases.
Frequently asked questions
Does Philadelphia pass the 1% rule?
No, on typical numbers. The median 3-bedroom gross rent is $1,573/mo and the median home value is $253,600 (Census ACS 2024 1-year), a ratio of 0.62%. To pass at that rent, a home would need to cost about $157,000 or less.
What is the typical rent for a 3-bedroom in Philadelphia?
The median gross rent for a 3-bedroom in Philadelphia, PA is $1,573 a month, and $1,500 across all rentals (Census ACS 2024 1-year). Gross rent includes utilities the renter pays, so the landlord's share can be a bit lower. The 3-bedroom median rose 3.6% from 2023.
Can you cash flow a rental in Philadelphia?
At the median price, not easily. With 20% down at 7.40% and realistic expenses, a $253,600 home renting for $1,573 loses about $396/mo. It breaks even at roughly $194,000.
How much cash do you need to buy a typical rental in Philadelphia?
About $58,320: a 20% down payment of $50,720 plus closing costs we assume at 3% ($7,600). Lenders often also want several months of reserves. Investment loans commonly need 15–25% down.
Is Philadelphia a good place to buy a first rental?
FirstDoor scores a median-priced home in Philadelphia as Pass (0 of 8 points). That's a starting point, not a verdict on every listing: neighborhoods vary, and buying below the median changes the math. Run any listing through the free calculator.
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Sources
Data: U.S. Census Bureau, 2024 American Community Survey 1-year estimates (released September 2025); year-over-year changes compare with 2023. Mortgage rate: Freddie Mac PMMS, week of October 15, 2026. Retrieved October 15, 2026. Insurance ($1,270/yr), closing costs (3%), maintenance (5%) and management (8%) are FirstDoor assumptions, not local data. Investment-property loans often price above the PMMS average. Medians describe the whole city, not any one home. Educational content, not financial advice.