Will Google penalize subdomains if content is nearly identical

Posted by John Pham on Pro Webmasters See other posts from Pro Webmasters or by John Pham
Published on 2013-10-24T04:58:55Z Indexed on 2013/10/24 10:13 UTC
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seo

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subdomain

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duplicate-content

I have created a subdomain for a town in San Diego that's ranking very well for it's keywords: http://carmelvalleymortgage.loanrebateinc.com/

I want to replicate this subdomain's content for another town in San Diego: http://sandiego.mortgage.loanrebateinc.com/

I will edit the text, tags, image files specific to each town, otherwise the verbiage will be identical.

Question:

Will Google penalize the main site?
Will Google penalize the subdomains and list the content as spam?
If yes to either 1 or 2, what strategies can I implement to prevent this?

I'm using WordPress.

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