Real Estate Investing in Newtown, Pennsylvania (18940)
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Should you buy in 18940 (Newtown, PA)? Our answer, based on the numbers below.
Mixed signals — some positives, some negatives. Worth considering but not a slam-dunk.
A middle-of-the-road market. Workable, but the best opportunities may be nearby ZIPs rather than this one.
No major risk flags on the data we track.
What’s happening in Newtown, PA (18940)?
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Market Analysis: 18940 Newtown
Investors eyeing 18940 need to respect the fundamentals at play. Home values of $754K come alongside slower price movement and elevated management overhead.
For an experienced owner, 18940 can be a a solid fit for hunting ground — but the discount at $754K reflects genuine risk that outside investors often underestimate.
On balance, 18940 offers a low basis, the region around Newtown has moved on in ways that the ZIP itself has not fully absorbed. The result is a discount with genuine reasons.
The 18940 ZIP's population of 29,797 has faced economic pressure over the last decade. That pressure shows up in rent delinquency patterns that posts the need for careful underwriting.
The 18940 ZIP fits a narrow investor profile — hands-on, patient, and willing to accept that the cap rate on paper is not the cap rate in reality.
Here's what matters if you're considering buying a home in Newtown:
Property Strategy for 18940
Which property type performs best in this market?
📊 Compare All Property Types →
| Type | Median Value | Est. Rent | Cap Rate | 5yr CAGR | $/Bedroom |
|---|---|---|---|---|---|
| 1BR | $290,317 | $2,280 | 5.7% | +8.6% | $290,317 |
| 2BR | $403,074 | $2,710 | 4.8% | +8.3% | $201,537 |
| 3BR | $586,465 | $3,250 | 4.0% | +7.7% | $195,488 |
| 4BR | $905,266 | $3,630 | 2.9% | +7.9% | $226,317 |
| 5BR | $1,501,040 | — | — | +9.4% | $300,208 |
Market Trends
Home Value History (with trend line)
Rent History (with trend line)
📊 How Does 18940 Compare?
| Metric | 18940 | Newtown | Pennsylvania |
|---|---|---|---|
| Home Value | $754,423 | $754,423 | $278,018 |
| 5-Year CAGR | 6.4% | 6.4% | 6.3% |
| Avg Rent | $2,829 | $2,829 | - |
| Cap Rate | 2.9% | 2.9% | - |
Similar ZIPs Within 25 Miles
Compare other nearby markets to see if a neighbor offers a better fit.
Landlord Ground Truth
Real numbers from people who own or manage rentals in ZIP 18940 (Newtown, PA). Anonymous, moderated, never written by AI.
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📊 Market Snapshot
| Home Value | $754,423 |
| Monthly Rent | $2,829 |
| Price-to-Rent | 22.2:1 |
| 1% Rule | ✗ Fails |
💰 Return Metrics
| Gross Yield | 4.5% |
| Cap Rate | 2.9% |
| 5-Year IRR | 9.4% |
📈 Home Appreciation
| 1-Year | +7.5% ▲ |
| 3-Year CAGR | +5.6% ▲ |
| 5-Year CAGR | +6.4% ▲ |
| 10-Year CAGR | +5.9% ▲ |
🏠 Rent Trends
| 1-Year | +17.1% ▲ |
| 3-Year CAGR | +8.7% ▲ |
| 5-Year CAGR | N/A |
The current 30-yr mortgage rate (6.8%) exceeds the estimated cap rate (2.9%). Financing reduces your cash-on-cash return below the cap rate. Markets like this may still make sense as IRR plays — factoring in appreciation, depreciation, and a future refinance when rates drop.
Run an IRR Analysis →⚠️ Risk Signals
Composite view of factors that can impact a ZIP's stability and your downside risk.
Demographics in 18940
Population: 29,797
Crime & Safety
Crime & Safety Data Coming Soon
We're integrating comprehensive crime statistics including violent crime rates, property crime, and safety scores to help you make informed investment decisions.
Expected: Q1 2025
🎓 Schools in 18940
Schools in This ZIP Code
About Repit School Scores
Traditional school ratings rely heavily on standardized test scores, which often reflect family income more than school quality. Repit takes a different approach.
We evaluate schools based on factors that research shows actually impact educational outcomes:
- Class Size — Smaller classes mean more individual attention
- School Funding — Resources available for programs, staff, and facilities
- Community Factors — Neighborhood characteristics that influence student success
- School Environment — Size, type, and structure
Scores are updated annually using federal education data.
🎓 Nearby Colleges & Universities
Investor Insight: With 1,676 students living off-campus nearby, this area has strong rental demand from the college population.
Frequently Asked Questions
Is Newtown, PA a smart market for rental property?
Investors tracking Newtown, PA will find a 3.0/5 rating supported by $754K median home values and $2,829/mo rents. That profile suits long-term holders targeting consistent returns.
Are there empty rentals in Newtown, PA?
Rental vacancy in Newtown, PA is elevated. Investors should budget normal turnover but not chronic empty units.
How much do tenants pay in Newtown, PA?
Rental rates in Newtown, PA average $2,829/mo. Tenant demand and $754K home values make the yield look reasonable by investor standards.
Is Newtown, PA good for landlords?
Landlord-friendliness in Newtown, PA is landlord-friendly. Eviction timelines and lease enforcement are considered reasonable by most property managers.
How qualified is the tenant pool in Newtown, PA?
Newtown, PA offers a reliable renter base at the $2,829/mo rent level. Tenant turnover is reasonable for well-managed properties.
You know 18940 now. You don’t know where it ranks.
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How 18940 ranks in Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
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