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Pennsylvania market guide
DSCR loans in Scranton, PA
Rental financing for Scranton investors, qualified on the property's rent.
For Scranton, PA rentals, the DSCR test compares rent to the full payment. The Census medians that frame it are $1,048 rent, $158,100 value and $3,224 in yearly taxes.
Local data for Scranton investors
For Scranton, the latest five-year ACS shows a median gross rent of $1,048 (about 13% below the Pennsylvania median of $1,209) and a median owner-occupied value of $158,100 (well below the Pennsylvania median of $254,500). A quick screen: twelve months of Scranton median rent over its median home value equals 8.0%, on the high side, which usually points to lower purchase prices relative to rent. Use it to compare markets, then replace it with real rent evidence for the address.
| Indicator | Pennsylvania | Scranton | Difference |
|---|---|---|---|
| Tax as a share of home value | 1.30% | 2.04% | +57% |
| Household income, median | $77,971 | $50,739 | -35% |
| Typical owner-occupied value | $254,500 | $158,100 | -38% |
| Typical monthly rent | $1,209 | $1,048 | -13% |
| Persons per household | 2.39 | 2.32 | |
| Share in 2-4 unit buildings | 8.3% | 25.2% | +203% |
| Share of homes detached | 56.6% | 48.7% | -14% |
| Long commuters, 45 min plus | 16.4% | 7.5% | -54% |
| Degree holders, age 25+ | 35.2% | 23.1% | -34% |
| Renters paying 30%+ of income | 48.2% | 52.1% | +8% |
| Units sitting vacant | 9.2% | 14.8% | +62% |
| Typical construction year | 1965 | 1938 | |
| Annual rent divided by value | 5.7% | 8.0% | +40% |
| Households that rent | 30.7% | 50.1% | +63% |
| Residents (Census estimate) | 13,018,639 | 76,033 |
Renting is the norm for many Scranton households: 50.1% are renters, well above the Pennsylvania median of 31%. Incomes matter for rent growth: the median household earns $50,739, well below the Pennsylvania median of $77,971, and 52% of renters are already cost-burdened at 30 percent of income or more.
Housing stock and vacancy in Scranton
Apartments and small buildings carry real weight in Scranton, about 40% of units, with duplexes through fourplexes at 25%. A median construction year of 1938 means many properties predate modern codes, so budget for repairs before you trust a cash-flow figure.
Use vacancy as a reality check: 15% of all units are vacant in Scranton, and the rental vacancy rate is 5.8%.
What the data means for Scranton buyers
Gross yield of 8.0% puts Scranton in a comfortable range for DSCR math, so the questions shift from whether the rent covers the payment to how durable that rent is. Older homes dominate Scranton, so ask about roof, panel and plumbing age early, because insurers and appraisers do. A large renter population (50%) supports leasing, though it also means many competing landlords, so condition and price positioning count.
Insurance, tax and flood context for Scranton
Homeowners in Scranton paid a median $3,224 in real estate taxes, close to the Pennsylvania median of $3,311, an effective rate near 2.04% of home value against 1.30% statewide. In rent terms, the tax bill equals roughly 26% of twelve months of median rent.
Lackawanna County carries a relatively moderate overall rating in FEMA's National Risk Index, where riverine flooding (relatively high), winter weather (relatively high) and lightning (relatively high) rank highest.
| Hazard in Lackawanna County, FEMA index | Level |
|---|---|
| Cold waves exposure | Relatively High |
| Lightning exposure | Relatively High |
| Winter weather exposure | Relatively High |
| Riverine flooding exposure | Relatively High |
| Social vulnerability score | Relatively High |
| Annualized loss estimate | Relatively Moderate |
| Composite risk | Relatively Moderate |
Flood risk in Scranton is parcel by parcel: check the address on FEMA's flood map service, because a mapped high-risk zone means required flood cover and a heavier payment.
Running the numbers in Scranton
Try the math at the medians. With rent at $1,048 and taxes near $269 a month, a 1.00 DSCR leaves $779 for everything else in the payment, a 1.20 ratio leaves $605, and a 1.25 ratio leaves $570. Any real property will differ, but the exercise shows how little room insurance and dues can take.
Registration, deposits and nightly stays in Scranton
This page does not claim to list every Scranton rental ordinance. Before you buy, call the city's planning or code office and Lackawanna County to ask about rental registration, inspections and short-term rental permits, and read any association declaration. On lodging taxes, a Scranton host should read this first. Pennsylvania applies its state hotel occupancy tax to short-term rentals of under 30 days, and platforms such as Airbnb collect and remit it, while counties and cities can add their own room taxes.
Deposit limits are set by statute in Pennsylvania (68 P.S. §§ 250.511a, 250.511b, 250.512), and for Scranton landlords the rule reads: 2 months' rent in the first year; 1 month's rent from the second year on. Landlord entry in Pennsylvania: No statute; follow the lease. Pennsylvania rent regulation summary: No.
Comparing Scranton with surrounding markets
Among the nearby markets above, Wilkes-Barre has the lowest median home value at $117,200 and Bethlehem the highest at $260,400, against $158,100 in Scranton.
| Market | Renter share | Tax bill | Home value | Residents | Rent |
|---|---|---|---|---|---|
| Bethlehem | 50% | $4,268 | $260,400 | 77,956 | $1,382 |
| Easton | 56% | $3,294 | $196,300 | 29,739 | $1,325 |
| Stroudsburg | 58% | $4,742 | $229,800 | 5,894 | |
| Wilkes-Barre | 49% | $2,083 | $117,200 | 44,423 | $946 |
| Scranton | 50% | $3,224 | $158,100 | 76,033 | $1,048 |
What fills Scranton rentals
About 5.8% of Scranton workers are self-employed, the kind of borrowers whose tax returns understate cash flow and who often prefer a loan sized on rent. Three more data points: government workers are about 10% of employment, 23% of adults hold a bachelor's degree or higher and 8% of commuters travel 45 minutes or more.
Education is part of the Scranton rental picture, with University of Scranton, Johnson College, Lackawanna College and Marywood University among the institutions listed. Access runs through interstate access via I-81 and I-80 and air service through Wilkes-Barre/Scranton International Airport and Wilkes-Barre Wyoming Valley Airport, which shapes where commuters want to live and how long a showing takes.
Taking a Scranton deal to a lender
Gather the lease or rent estimate, the tax estimate and an insurance quote for the Scranton address, check them in the calculator, and begin your application or get a quote first.
More Pennsylvania markets
- All Pennsylvania DSCR loans
- DSCR loans in Wilkes-Barre, PA
- DSCR loans in Stroudsburg, PA
- DSCR loans in Easton, PA
- DSCR loans in Bethlehem, PA
- Every market we cover
References
- Scranton landlords: see 68 P.S. §§ 250.511a, 250.511b, 250.512
- State rule cited for Scranton hosts: Pennsylvania Department of Revenue, home-sharing
- U.S. Census Bureau data for Scranton
- FEMA hazard ratings for Lackawanna County
- Scranton on Wikipedia
The Scranton statistics are five-year ACS estimates (2020 to 2024), which have sampling error. Deposit and notice summaries come from RedFlagLease (CC BY 4.0) and the linked Pennsylvania sections. Reviewed in October 2026, with no promise that rules have stayed put.
Quick file checklist
On a Scranton purchase, line up the lease, the tax estimate, the insurance quote and any association dues before the appraisal is ordered, and ask the appraiser's office what rent comparables they plan to use.
DSCR loan availability varies by property and lender program and is not an offer to lend. See our disclosures.
Frequently asked questions
What rent number goes into a Scranton, PA DSCR calculation?
The property's own rent evidence decides: a lease, or the market rent from the appraisal. Citywide, Scranton renters report a median of $1,048.
How do taxes and insurance affect a DSCR loan in Scranton?
The denominator is the whole housing payment. Using Scranton's median rent of $1,048, a ratio of 1.25 allows $838, and a ratio of 1.00 allows all $1,048.
Are Scranton property taxes high for Pennsylvania?
The median bill is $3,224, an effective rate near 2.04%. Because Lackawanna County may reassess at sale, use an estimate on the new price when you run the ratio.
Can I use Airbnb income to qualify in Scranton?
Depending on the lender, yes, if the property may legally be used that way and income is documented. Confirm the local permit, association rules and Pennsylvania lodging taxes before you underwrite nightly income in Scranton.
What are the security deposit rules for a Pennsylvania landlord?
The cap is stated as follows: 2 months' rent in the first year; 1 month's rent from the second year on. A landlord has 30 days to return the deposit. Both come from 68 P.S. §§ 250.511a, 250.511b, 250.512.
Is flood or storm risk a concern for a Scranton rental?
At the county level FEMA calls overall risk relatively moderate. Insurance, not the index, shows up in the ratio, so price a policy for the Scranton address.
How do LLC closings work for Scranton rentals?
An individual can borrow too. If you prefer an entity for the Scranton purchase, expect to provide formation documents and sign a personal guaranty.