Bronx Delivers 5.8% Yields, No Short-Term Rental Needed

Estimates for a typical 3-bedroom house. Short-term rental is not available to investors in this market.

The Bronx commands significantly higher property prices and rents than both the state and national medians, which reflects its position within the New York City market. Despite this premium, yields remain above average because rents have kept pace with (and in some ZIP codes outpaced) property price growth. The borough's strong rental demand, driven by proximity to Manhattan and robust public transit, supports low vacancy rates and consistent income.

For investors considering other New York State markets, upstate areas like Buffalo and Syracuse offer higher yields with lower entry prices and fewer regulatory constraints. Buffalo's Erie County, for example, delivers gross yields around 7% on 3-bedroom houses priced around $240,000 — roughly 25% above the Bronx but with weaker appreciation. The trade-off is weaker appreciation potential and less tenant demand density. See our data sources for how we calculate these comparisons.

Investment Bottom Line: Strong Yields for a Premium NYC Market

The Bronx is a long-term rental market, full stop. NYC Local Law 18 removes the short-term rental option entirely for investors, so the only question is whether long-term rental returns justify the investment. The data says they do, with caveats.

A gross yield of 5.8% is strong for a New York City borough, exceeding both the state average of 5.3% and the national average of 5.3%. Net yield of 3.3% after operating costs is more modest but still positive, and depreciation deductions of roughly $12,371 per year provide meaningful tax shelter in a high-tax jurisdiction.

The key risk is price concentration: at a median of around $523,370 for a 3-bedroom house, the Bronx requires substantial capital. But the range is wide, with entry points as low as $184,326 in some ZIP codes and prices exceeding $1,115,000 in others. Targeting higher-yield ZIP codes with lower entry prices, like New York (10456) at 10.3%, can significantly improve returns.

For cash flow investors, the Bronx delivers above-average yields with steady tenant demand. For appreciation-focused investors, it offers NYC real estate exposure at a lower entry point than Manhattan or Brooklyn. For short-term rental operators, it is simply not an option. High-leverage investors should model carefully: at current mortgage rates, the gap between gross yield and financing costs leaves thin margins, though depreciation benefits help on an after-tax basis.

Explore all 25 Bronx ZIP codes in the dashboard to find the specific neighborhood that matches your investment criteria.

Data reflects market conditions as of April 2026.

This information is for educational purposes only and should not be considered financial or legal advice. Regulations and market conditions change frequently. Verify current rules with local authorities before making investment decisions.