Introduction
Buffalo, NY, is a city rich with cultural heritage, a vibrant sports scene, and growing neighborhoods that have piqued the interest of real estate investors. With its mix of historical architecture and an emerging market, Buffalo offers various submarkets that stand out for short-term rental investments. Here’s a breakdown of some of the top-performing zip codes for short-term rental investments in Buffalo, NY.
ZIP Code 14211
- Gross Yield: 25%
- Annual Revenue: $24,815
- Zillow Home Value: $100,000
ZIP Code 14211 encompasses neighborhoods like Broadway-Fillmore and parts of Schiller Park, areas known for their historic homes and proximity to the city’s eastern corridor. This ZIP code’s impressive 25% gross yield indicates high potential profitability, especially given the lower Zillow home value. The affordable property prices make it a desirable entry point for investors. Broadway-Fillmore, in particular, has seen renewed interest in restoration projects, which could attract more visitors and increase rental revenue. With 12 full-time listings, the market is competitive but ripe for growth.
ZIP Code 14223
- Gross Yield: 17%
- Annual Revenue: $41,542
- Zillow Home Value: $249,400
ZIP Code 14223 covers parts of Tonawanda, a suburb with a strong community feel and access to waterfront activities along the Niagara River. This area offers the highest annual revenue on the list, suggesting consistent guest demand and higher nightly rates. Despite a higher Zillow home value, the steady gross yield of 17% makes it a strong contender for short-term rental investment. With only six full-time listings, investors can take advantage of the area’s mix of suburban comfort and proximity to Buffalo’s bustling city life.
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ZIP Code 14212
- Gross Yield: 15%
- Annual Revenue: $21,880
- Zillow Home Value: $147,300
ZIP Code 14212 includes parts of Kaisertown and Lovejoy, neighborhoods known for their working-class charm and easy access to major highways. The gross yield of 15% combined with a moderate Zillow home value of $147,300 makes this an appealing investment choice for those seeking to balance affordability with decent returns. These neighborhoods are popular among families and road-tripping tourists, given their strategic location close to the Buffalo Niagara International Airport. With nine full-time listings, competition is moderate, but there’s still room to attract guests with well-priced and comfortable accommodations.
ZIP Code 14204
- Gross Yield: 14%
- Annual Revenue: $25,526
- Zillow Home Value: $176,600
ZIP Code 14204 covers the area around downtown Buffalo and parts of the Old First Ward, which are rapidly developing and attracting a younger demographic. The 14% gross yield, though lower than other areas on this list, is bolstered by a respectable annual revenue of $25,526. With 51 full-time listings, this market is highly competitive, but the payoff could be substantial. The proximity to waterfront developments, sports venues like KeyBank Center, and burgeoning entertainment districts make this a highly desirable location for tourists. For investors, the challenge lies in standing out among a crowded market.
Conclusion
Buffalo’s diverse ZIP codes offer varying levels of affordability, yield potential, and market competition. From the urban charm of 14211 to the suburban allure of 14223, each area has unique opportunities for savvy investors. Understanding the local landscape, guest preferences, and community trends will be key to maximizing returns on your investment.
