Buffalo remains a comparatively affordable residential real estate market in 2026. Zillow reported a typical Buffalo home value of $248,828 in August 2026, versus a U.S. typical home value of $368,697, putting Buffalo about 32.5% below the national figure. A September 2026 investment-market analysis estimated Buffalo's gross rental yield at approximately 6.9%. Whether you're seeking appreciation in established historic neighborhoods or cash flow from lower-priced properties, Buffalo offers materially different price and rent profiles across neighborhoods.
Finding the right neighborhood means balancing acquisition price, achievable rent, market liquidity, property type, regulatory requirements, and the amount of management an investor is prepared to handle. The ten areas retained here are compared on five factors: current listing and sold-price benchmarks, rent benchmarks, market balance and days on market, property mix, and strategy-specific constraints such as short-term-rental data and licensing. No composite score or forward-return forecast is applied. Median rent divided by median listing price is only a rough consistency check and is not treated here as a true property yield, cap rate, or cash-on-cash return because the underlying properties may not be comparable and the calculation excludes vacancy and operating expenses.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Key Takeaways
Buffalo remains relatively affordable: Redfin reported an August 2026 median sale price of $229,848. Zillow separately reported a Buffalo typical home value of $248,828 versus a U.S. typical home value of $368,697, a difference of about 32.5%.
Current citywide gross-yield estimate: A September 2026 investment-market analysis estimated Buffalo's gross rental yield at approximately 6.9%.
Properties can still move quickly: Redfin reported 15 median days on market, while Zillow separately reported 11 median days to pending. These are different metrics and are not combined into one average.
Neighborhood conditions vary sharply: August 2026 data classify Elmwood Village and Allentown as balanced markets; North Buffalo, Delaware-West Ferry, and South Buffalo as seller's markets; and Lovejoy, Schiller Park, Downtown Buffalo, and the West Side as buyer's markets. Black Rock's August 2026 Realtor.com reading also classifies it as a buyer's market.
Why Buffalo Real Estate Makes Sense in 2026
Buffalo combines below-national home values with a substantial rental market. Zillow reported average ZORI rent of $1,425 in August 2026, up 2.9% year over year. Realtor.com's separate listing-based series reported a Buffalo median rent of $1,595, up 6.33% year over year. These figures are presented separately because the providers use different methodologies.
The market is showing signs of cooling and rebalancing without having become buyer-dominated citywide. Realtor.com's Buffalo city series reported a 6.16% year-over-year decline in median listing price, a 26.53% increase in active listings, and a seller's-market classification, with homes selling at approximately 106% of asking price. More inventory gives buyers additional selection, but competition remains seller-leaning across the city overall.
What Drives Buffalo's Market
Several measurable factors help frame Buffalo's investment case:
Large education and health-services employment base: The Bureau of Labor Statistics reported about 104,200 education and health-services jobs in the Buffalo-Cheektowaga area in August 2026, up 0.5% year over year.
University enrollment adds a large student base: The University at Buffalo expected approximately 30,000 students for fall 2026.
Waterfront planning is active: New York launched a 2026 strategic planning process for the Buffalo River waterfront, including Canalside, KeyBank Center, the Cobblestone District, and surrounding waterfront areas.
Renting is an important part of the housing market: Census QuickFacts reports a 43.0% owner-occupied housing-unit rate, meaning a substantial share of occupied housing is renter-occupied.
For investors evaluating specific Buffalo addresses, mogul's investment property calculator can model rental income, ROI, IRR, cash-on-cash yield, and other return metrics using property and comparable-market information.
1) Elmwood Village: Best for Premium Neighborhood Exposure
Best For: Investors seeking an established, higher-priced neighborhood with strong amenity access
Median Listing Price: $329,900
Median Sold Price: $430,000
Price Per Square Foot: $234
Median Rent: $1,700
Market Status: Balanced Market
Elmwood Village features historic housing and the Elmwood Avenue commercial corridor, giving investors exposure to one of Buffalo's more established urban neighborhoods. Current pricing places it well above the city's lower-cost investment areas, and Realtor.com classifies the neighborhood as a balanced market.
Why It Made the List
Elmwood Village offers a premium neighborhood profile with a current median rent of $1,700 and a $329,900 median listing price. Those figures are best used as screening inputs, with yield and return expectations modeled at the property level.
Investment Profile:
Established urban neighborhood with premium pricing
$234 median listing price per square foot in the current Realtor.com series
Balanced market conditions in August 2026
Higher current entry price than Buffalo's lower-cost neighborhoods
For investors who prefer an established neighborhood and can underwrite the higher acquisition price, Elmwood Village remains a relevant buy-and-hold area to analyze at the property level.
2) Allentown: Best for Historic Character and STR Optionality
Best For: Investors evaluating value-add properties and legally compliant short-term-rental strategies
Median Listing Price: $369,900
Median Rent: $1,400
Market Status: Balanced Market
Buffalo STR Benchmark: Approximately $30,200 annual revenue, 59% occupancy, and $155 ADR citywide
Allentown pairs historic housing with proximity to downtown and entertainment districts. Airbtics' March 12, 2026 update identifies Allentown as an STR hotspot and estimates a 5% location premium, while AirDNA's current public benchmark is Buffalo-wide. Property-level underwriting is still necessary because citywide STR averages are not neighborhood-specific returns.
Why It Made the List
Allentown can support multiple rental strategies, but its $369,900 median listing price and $1,400 median rent are property-level modeling inputs rather than a blanket neighborhood yield. Buffalo's regulatory framework is also part of short-term-rental analysis.
Buffalo requires a Short-Term Rental License for rentals of less than six months, and non-owner-occupied STRs require a special use permit before the STR license can be processed. Zoning and property-specific eligibility are part of the address-level regulatory analysis.
mogul's Airbnb Calculator can model short-term-rental income, ROI, and comparable-property performance for specific Allentown addresses.
Investment Profile:
Historic urban housing stock
Balanced market in August 2026 data
Multiple rental strategies may be possible at eligible addresses
STR underwriting incorporates licensing, zoning, and special-use-permit requirements
Allentown remains relevant for investors who want urban character and strategy flexibility, but its economics depend on property-level analysis rather than stale neighborhoodwide STR figures.
3) North Buffalo (Hertel Avenue Corridor): Best for Buy-and-Hold Flexibility
Best For: Investors seeking a mix of single-family, duplex, and small multifamily opportunities
Median Listing Price: $347,400
Median Sold Price: $419,750
Median Rent: $1,750
Price Per Square Foot: $222
Market Status: Seller's Market
The Hertel Avenue corridor includes neighborhood retail, restaurants, and services within North Buffalo's broader residential market.
Why It Made the List
Current North Buffalo data support a higher-price, seller-leaning market with a $1,750 median rent across property types. Zillow's nearby 14216 rental series separately reported approximately $1,100 for a one-bedroom and $1,295 for a two-bedroom in September 2026, illustrating the sensitivity of rent assumptions to geography and bedroom count.
Investment Profile:
Mixed housing types support multiple buy-and-hold approaches
Seller's-market conditions in August 2026
Higher listing and sold-price benchmarks than lower-cost Buffalo neighborhoods
Neighborhood and bedroom-specific rent assumptions are relevant to underwriting
The buy-and-hold strategy can fit North Buffalo, while expected appreciation, tenant retention, and vacancy remain modeling assumptions rather than established outcomes.
4) Delaware District: Best for Premium Historic Housing
Best For: Investors seeking higher-priced historic residential assets near major cultural amenities
Current Listing Benchmark: $332,450 in Delaware-West Ferry
Current Rent Benchmark: $2,000 in Delaware-West Ferry
Market Status: Seller's Market in Delaware-West Ferry
The Delaware District includes premium historic housing near Delaware Park and the Buffalo AKG Art Museum.
Why It Made the List
The area's premium pricing and cultural setting make it distinct from Buffalo's lower-entry-price neighborhoods. Public neighborhood data do not provide return-volatility or downside-protection analysis, leaving cash flow, maintenance exposure, and purchase basis as property-level variables.
Investment Profile:
Premium historic housing near major cultural institutions
Seller's-market conditions in the Delaware-West Ferry proxy geography
Higher rent benchmark than many Buffalo neighborhoods
Property-specific risk analysis is more appropriate than a blanket low-risk label
Delaware District can suit investors seeking premium housing exposure, but neighborhood prestige alone does not establish downside protection or return stability.
5) South Buffalo: Best for Lower Entry Prices in an Established Area
Best For: Investors focused on lower acquisition prices and property-level cash-flow underwriting
Median Listing Price: $199,900
Median Sold Price: $237,000
Median Rent: $1,200
Sale-to-List Ratio: 108%
Market Status: Seller's Market
South Buffalo provides a materially lower current listing-price benchmark than Elmwood Village, Allentown, or North Buffalo. That lower basis can improve property-level income economics, but the actual yield depends on the specific purchase price, achievable rent, vacancy, and operating expenses.
Why It Made the List
South Buffalo's $199,900 median listing price and $1,200 median rent provide starting benchmarks for property-level underwriting. Realtor.com's August 2026 market summary also shows that median rent was down 7.69% year over year and rental properties were down 10%, so the evidence does not support describing rental demand as unambiguously growing.
Investment Profile:
Lower current entry price than Buffalo's premium neighborhoods
Seller's-market conditions rather than buyer-friendly conditions
Property-level cash flow depends on actual rent, expenses, vacancy, and purchase price
Value-add opportunities vary by property
South Buffalo can fit income-oriented strategies when the individual deal works. The rental property calculator can model return scenarios after accounting for expenses.
6) Black Rock: Best for Budget-Conscious Buyers and STR Due Diligence
Best For: Investors seeking one of the lower neighborhood entry prices in the latest standalone data
Median Listing Price (August 2026): $149,500
Median Days on Market (August 2026): 95 days
Market Status (August 2026): Buyer's Market
Black Rock sits in northwest Buffalo near the Niagara River and, in its latest standalone Realtor.com data, carries a substantially lower listing-price benchmark than Buffalo's premium neighborhoods.
Why It Made the List
Buffalo-wide AirDNA data show approximately $30,200 in average annual STR revenue, 59% occupancy, and a $155 ADR. Those are citywide gross-revenue metrics rather than Black Rock-specific net returns, so address-level revenue and expense assumptions are necessary for property-level analysis.
Any Black Rock STR strategy is subject to Buffalo's licensing and zoning requirements, including applicable special-use permits.
Investment Profile:
$149,500 median listing-price benchmark in August 2026
Buyer's-market classification in August 2026
95 median days on market in August 2026
STR analysis depends on address-level modeling and operating costs
Black Rock is most defensible as a lower-entry-price value market. Waterfront proximity alone does not establish superior STR returns.
7) Lovejoy: Best for Low Entry Price
Best For: Budget-conscious investors comparing lower-cost Buffalo neighborhoods
Median Listing Price: $139,900
Median Rent: $1,200, based on one rental property in the current neighborhood dataset
Market Status: Buyer's Market
Lovejoy offers one of the lowest current listing-price benchmarks in this article. That price point can expand buying power, but the current rent dataset is too thin to support a robust neighborhoodwide yield estimate.
Why It Made the List
The lower acquisition benchmark makes Lovejoy relevant for investors building diversified portfolios across price points. Current public data do not establish that Lovejoy inherently requires more hands-on management or that its tenant base should be characterized by income class.
Investment Profile:
Low current listing-price benchmark
Buyer's-market conditions
Current rent sample is too limited for a reliable neighborhood yield conclusion
Property-level condition and rent evidence are especially important
Specific-property underwriting is more informative than the neighborhood's thin median-rent sample.
8) Schiller Park: Best for Affordable Entry Points
Best For: First-time or budget-focused investors evaluating lower-priced Buffalo properties
Median Listing Price (August 2026): $149,900
Median Rent (August 2026): $1,450
Median Days on Market (August 2026): 52 days
Market Status (August 2026): Buyer's Market
Schiller Park is a separate neighborhood from South Park. Its August 2026 Realtor.com indicators place it in Buffalo's lower-entry-price segment.
Why It Made the List
Schiller Park combines a $149,900 August 2026 median listing benchmark with an August 2026 buyer's-market classification. Cash-on-cash return varies by property because it depends on financing, down payment, closing costs, expenses, vacancy, renovations, and actual rent.
Investment Profile:
$149,900 median listing price in August 2026
$1,450 median rent in August 2026
52 median days on market in August 2026
Buyer's-market conditions in August 2026
Returns depend on property-specific financing and operating assumptions
Schiller Park provides an accessible price point for investors who want Buffalo exposure without the acquisition cost of the city's premium neighborhoods.
9) Downtown Buffalo: Best for Urban Mixed-Use
Best For: Investors evaluating condos, apartments, and mixed-use urban opportunities
Median Listing Price: $381,000
Median Sold Price: $557,000
Median Rent: $2,375
Median Days on Market: 106 days
Market Status: Buyer's Market
Downtown Buffalo encompasses the Main Street corridor, Theater District, and Canalside area. New York's 2026 initiative is specifically a Buffalo River waterfront strategic-planning process covering areas including Canalside, KeyBank Center, the Cobblestone District, and the waterfront study area, rather than a general downtown incentive program.
Why It Made the List
Downtown provides a housing mix and urban investment profile that differ from Buffalo's predominantly residential neighborhoods. August 2026 data show a buyer's market, a 98% sale-to-list ratio, and 106 median days on market, giving buyers a different negotiating environment from seller-leaning neighborhoods such as North Buffalo and South Buffalo.
Investment Profile:
Highest median rent benchmark among the neighborhoods in this article
Buyer's-market conditions in August 2026
Longer marketing time than Buffalo's citywide Redfin measure
Urban condo and mixed-use opportunities require property-specific HOA, operating-cost, and use analysis
Downtown is a strategy-specific market. Current data support its buyer's-market classification and higher rent benchmark, but claims about a growing professional renter population or future urban-revival appreciation require separate evidence.
10) West Side: Best for Strategy Flexibility
Best For: Investors comparing single-family, multifamily, and potentially eligible STR strategies
Median Listing Price: $277,000
Median Rent: $1,550
Median Days on Market: 36 days
Market Status: Buyer's Market
The West Side sits between downtown and Buffalo's waterfront and includes both single-family and multifamily housing. Current data support describing it as a buyer's market rather than a balanced or emerging seller's market.
Why It Made the List
The West Side's mix of property types gives investors multiple underwriting paths. Realtor.com's August 2026 market summary shows a $277,000 median listing price, $1,550 median rent, and a 3.13% year-over-year decline in median rent. Property-level return assumptions depend on actual expenses, vacancy, and financing rather than neighborhood benchmarks alone.
Any STR strategy is subject to Buffalo's Short-Term Rental License, zoning, and applicable special-use-permit rules.
Investment Profile:
Mix of single-family and multifamily options
Buyer's-market conditions
36 median days on market in the current Realtor.com series
LTR, house-hacking, and eligible STR strategies require separate property-level underwriting
mogul's real estate calculator can model different financing, hold-period, and return scenarios for specific West Side properties.
Why mogul Is a Superior Headache-Free Alternative to Direct Ownership
Buffalo can be attractive for direct buyers, but buying an entire rental property still requires meaningful upfront capital, financing, transaction execution, and ongoing landlord responsibilities. mogul offers a different structure through fractional real estate investing, giving investors property-specific access to income-producing residential real estate without having to acquire and operate an entire home themselves.
For investors who prioritize lower upfront capital and outsourced day-to-day operations, that structure can be superior to direct ownership. mogul provides property-specific exposure to income-producing residential real estate rather than a blind pooled structure, without requiring investors to acquire an entire home.
How mogul Transforms Real Estate Access
mogul is a fractional real estate platform club founded by former Goldman Sachs executives with $10 billion+ in deal experience. mogul reports 40,000+ investors on the platform. mogul also states that less than 1% of reviewed properties pass its diligence process, supported by institutional-style underwriting and investment committee review.
Key Benefits:
Potential monthly distributions: Once a property is operational and generating distributable cash flow, investors may receive their proportional share of net rental income after applicable property-level expenses and reserves. Distributions depend on actual property performance, consistent with mogul's focus on monthly income from rental operations.
Potential property-level tax allocations: Depending on the offering and the investor's circumstances, mogul's property-specific partnership structures may pass through depreciation and other tax items on Schedule K-1. Availability and usefulness depend on the applicable offering, tax rules, and investor circumstances. The platform also provides educational resources on real estate tax benefits.
Professional management: mogul coordinates professional property management, while local managers or operating partners handle tenant operations, maintenance, rent collection, and day-to-day property functions. This structure is designed to reduce direct landlord work.
Investor-directed diversification: Investors can choose to spread capital across multiple mogul properties rather than concentrating in a single home, with opportunities presented through current property listings. Diversification is investor-directed rather than automatic.
First-year loss protection for qualifying new-member investments: mogul's first $10k protection covers up to $10,000 in aggregate losses on qualifying investments made during a new member's first seven days, measured after one year, with mogul's own balance sheet capital, subject to the promotion disclaimer.
Why This Matters for Buffalo Investors
Across the neighborhoods discussed above, current median listing benchmarks range from roughly $139,900 in Lovejoy to $381,000 in Downtown Buffalo, while actual investor equity depends on financing. Fractional investing can lower that upfront capital barrier and outsource many of the operational responsibilities associated with owning a rental directly.
mogul reports a historical 18.8% average annual return across platform assets. That historical platform metric measures a different return profile from Buffalo neighborhood gross rent-to-price screening ratios.
mogul's current property examples and offering information are presented through its property listings, providing asset-level visibility into active opportunities. Availability varies over time, so active listings may or may not include Buffalo-specific exposure.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions
Is Buffalo a good place to invest in real estate in 2026?
Buffalo is materially less expensive than the national typical home value. Zillow reported a Buffalo typical value of $248,828 versus a U.S. typical value of $368,697 in August 2026. A September 2026 analysis estimated approximately 6.9% gross rental yield, while Redfin reported a 2.8% year-over-year increase in median sale price. Those figures support Buffalo's affordability and current income potential, but they do not establish a national risk-adjusted ranking or a certain future appreciation outcome.
What are the best neighborhoods in Buffalo for rental income?
Available 2026 data support comparing neighborhoods by actual listing price and rent rather than assigning blanket yield ranges. Lower-entry-price areas include Lovejoy and Black Rock. Schiller Park's latest Realtor.com price reading also places it in the lower-price tier. Elmwood Village, North Buffalo, and Downtown Buffalo carry higher price and rent benchmarks in the latest Realtor.com series. A neighborhood's median rent divided by its median listing price is only a rough screening proxy, not a true investment yield. Property-level yield analysis depends on achievable rent, vacancy, taxes, insurance, repairs, management, financing, and capital expenditures.
How can I start real estate investing in Buffalo with limited capital?
Direct ownership depends heavily on financing. For example, at a hypothetical 20% down payment, a $150,000 to $400,000 property would require roughly $30,000 to $80,000 before closing costs. Fractional ownership through mogul provides an alternative route to residential real estate exposure through a streamlined fractional investing process with property-specific access. mogul also offers a free investment property calculator that can analyze U.S. addresses, including Buffalo addresses, for direct-purchase scenario modeling.
What are the tax implications of owning rental property in Buffalo?
Rental-property owners may be able to deduct qualifying mortgage interest, real-estate taxes, and depreciation, subject to federal rules and limitations. Eligible investment-property exchanges may qualify for Section 1031 tax deferral when the statutory requirements are met. New York-source rental real-estate income can also create New York filing obligations, including for nonresidents, under the state's Form IT-203 instructions. Depending on the applicable offering and an investor's tax circumstances, mogul's property-specific LLC structure may allocate depreciation and other property-level tax items through Schedule K-1. Educational context on real estate tax benefits is available from mogul. Tax treatment depends on the applicable rules and each investor's circumstances.
Will the Buffalo housing market continue to grow or is a crash expected?
Current 2026 indicators show a market that is cooling and rebalancing, but they do not establish what happens next. Zillow reported Buffalo typical home values up 2.9% year over year, while Redfin reported the median sale price up 2.8% year over year. Realtor.com's city series simultaneously reported median listing prices down 6.16% and active listings up 26.53%. Together, those measures are consistent with a cooling or rebalancing market, not a reliable forecast of either continued growth or a future crash.
What kind of returns can I expect from Buffalo real estate investments?
Property-level returns depend on purchase price, achievable rent, vacancy, taxes, insurance, maintenance, management, financing, capital expenditures, and exit value. Current neighborhood medians are useful for screening, but they are not a substitute for a full property model. Short-term rentals can produce higher gross revenue than long-term leases for some properties, but higher cleaning, utilities, furnishing, platform fees, management, turnover, and regulatory costs can materially change net returns. AirDNA's current Buffalo-wide benchmark is approximately $30,200 in annual STR revenue, 59% occupancy, and a $155 ADR. Buffalo STR investing is subject to address-specific licensing and zoning requirements, including applicable special-use permits. For fractional residential real estate, mogul reports a historical 18.8% average annual return across platform assets. This historical platform metric is not directly comparable with a neighborhood gross-rent screening ratio.