Bronx Gross Yields Hit 5.9% in Select ZIPs, No Airbnb Needed

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

A gross yield of 5.9% sits above both the New York state average of 5.0% and the national average of 5.3%. The Bronx is a long-term rental market by law, and the numbers suggest it can work for the right investor, particularly in higher-yielding ZIP codes.

Bronx ZIP Codes Range from 5% to 11% Gross Yield

The borough-wide average masks enormous variation across the Bronx's 25 ZIP codes. The highest-yielding areas deliver more than double the borough median, making neighbourhood selection the single most important decision an investor faces here.

Co-op City (10475) stands out with the lowest entry price at $193,563 and the highest gross yield at 11.0%. Melrose (10451) commands higher rents at $3,732 per month, reflecting strong demand near transit connections and the new developments along the Grand Concourse. The more expensive areas of the Bronx, with prices approaching $1,055,178, compress yields toward the borough average.

These are averages per ZIP code. The dashboard breaks it down further, by bedroom count and property type, so you can model your specific property.

NYC Local Law 18 Eliminates the Short-Term Rental Option Entirely

The Bronx is not a market where investors choose between short-term and long-term rental. NYC Local Law 18, enacted in 2023, effectively bans investor-owned short-term rentals across all five boroughs. Hosts must register with the city ($160 fee), be physically present during every stay, and may host no more than two guests. Entire-home rentals under 30 days are prohibited outright.

For an investor who does not live in the property, this means zero legal short-term rental nights per year. There is no workaround through permits, zoning, or property type. The law applies equally to houses and apartments across the Bronx's 25 ZIP codes.

This regulatory reality simplifies the investment thesis considerably. The question is not "which strategy wins" but "does long-term rental pencil out after costs?" The answer depends heavily on which ZIP code you buy in, with gross yields ranging from around 5% to over 11%.

Investors who specifically want the short-term rental strategy in New York State do have options upstate, where Local Law 18 does not apply. Markets in Clinton, Steuben, and Essex counties operate under far fewer restrictions, though property values and rent levels are fundamentally different from an NYC borough.

Operating Costs Take Roughly 40% Off the Gross in the Bronx

A 5.9% gross yield does not translate directly to cash in your pocket. Long-term rental in the Bronx carries meaningful operating costs that investors must account for.

Property taxes run approximately 1.0% of the assessed value, which works out to roughly $4,992 per year on a median-priced 3-bedroom house. New York's property tax system for multifamily and mixed-use properties (common in the Bronx) can differ from single-family assessments, so investors should verify the specific tax class for their target property.

Other annual costs to plan for include:

• Landlord insurance: approximately $1,174 per year
• Maintenance and repairs: estimated at around $5,028 annually
• Property management: typically 8% of collected rent if using a manager (roughly $2,381 per year on median rents)

Combined, these costs total approximately $10,136 to $15,003 per year before mortgage payments. On annual gross rent of $30,264, that leaves roughly $15,003 to $20,128 in net operating income before financing. For an all-cash buyer, that translates to a net yield in the range of 2.8% to 3.2%. Leveraged investors will need to run the numbers carefully based on their mortgage terms.

Closing costs and transfer taxes in New York City are notably higher than in most U.S. markets. Between the NYC and State transfer taxes, mansion tax (on properties over $1,000,000), attorney fees, and title insurance, buyers should budget accordingly. Consult a local real estate attorney for current rates before committing.

After Tax, Bronx Rental Income Benefits from Depreciation but Faces State Tax

New York State has a progressive income tax that tops out at 10.9%, and New York City imposes its own income tax of up to 3.876%. Rental income from a Bronx property is subject to both, making the effective marginal tax rate among the highest in the country for real estate investors.

Depreciation provides meaningful relief. Residential rental property depreciates over 27.5 years under IRS rules, creating a paper deduction of roughly 3.6% of the building's value annually. On a property worth $515,735, assuming the building represents about 80% of the total value (land values are high in NYC), that yields approximately $15,003 in annual depreciation. This paper loss offsets a significant portion of the rental income, reducing taxable income substantially in the early years.

Mortgage interest on rental properties is fully deductible on Schedule E, with no SALT cap limitation (the ,000 SALT cap applies to personal residences, not investment properties). For leveraged investors, the combination of depreciation and interest deductions can create a paper loss even while generating positive cash flow.

Long-term rental income is classified as passive income, which limits your ability to deduct losses against W-2 or active business income unless your adjusted gross income is below $150,000 (with a phase-out beginning at $100,000). Investors with higher incomes should plan for passive loss carryforwards.

The 1031 exchange remains available for deferring capital gains when selling, allowing investors to swap into another investment property without triggering federal or state tax on the gain. Given New York's high combined tax rates, this strategy is particularly valuable for Bronx investors looking to reposition.

Bronx Yields Beat Both the State and National Average

Comparison of key investment metrics.

The Bronx offers a slightly higher gross yield than both the statewide and national medians, despite sale prices running nearly double the New York state average and more than double the national figure. The yield premium comes from rents: at $2,522 per month, Bronx rents are roughly double the state median of $1,085. High rents relative to prices are what keep the Bronx competitive on yield despite being a premium-priced market.

Within New York State, investors seeking higher absolute yields can find them upstate. Buffalo (Erie County) offers long-term rental gross yields above 13% on properties priced around $150,000 to $193,563 and Syracuse (Onondaga County) delivers yields above 17% on sub-$106,000 properties. These markets also allow short-term rentals, giving investors both strategy options. The trade-off is obvious: lower appreciation potential, smaller tenant pools, and different risk profiles than a New York City borough. New York rental market insights

Premium Prices Require the Right ZIP Code to Justify Entry

The Bronx is a premium market by any national standard. A median 3-bedroom house price of $515,735 is roughly 2.4 times the national median, and the most expensive ZIP codes push toward $1,055,178. For investors entering at these price points, the yield story is thin: a 5% gross yield on a more expensive property leaves limited room for error once costs and financing are layered in.

The investment case improves dramatically at the lower end of the price spectrum. ZIP code 10475 (Co-op City) offers entry at $193,563, less than a third of the borough median, while still generating $1,772 per month in rent. That 11.0% gross yield is more than double what many NYC-adjacent markets deliver, and it puts the Bronx in competition with markets that typically dominate yield rankings.

The price range from $193,563 to $1,055,178 across the borough's 25 ZIP codes means two investors buying in the Bronx can have completely different return profiles. An investor paying $399,200 in Morrisania (10456) and collecting $3,412 per month faces a fundamentally different calculation than one paying $1,055,178 in Riverdale and collecting a proportionally lower rent. Queens Yields 3.1% Gross, but Rego Park Doubles That at 6.8% Brooklyn Yields 3.0% for Long-Term Rental, No Airbnb Option

The appreciation side of the equation has historically favoured NYC boroughs, and gentrification patterns in the South Bronx have driven meaningful price gains in ZIP codes like 10451, 10454, and 10455 over the past decade. Investors willing to accept a lower current yield may be positioning for capital growth, but that is a bet on continued neighbourhood transformation, not a guaranteed return.

Investment Bottom Line: Long-Term Rental Works in the Bronx, but Only at the Right Price

The Bronx delivers a gross rental yield of 5.9% on a borough-wide basis, above both the New York state average and the national average. With short-term rental completely off the table under NYC Local Law 18, this is a pure long-term rental play, and the math works best at lower price points in ZIP codes like Co-op City, Melrose, and Morrisania, where gross yields push into double digits.

After operating costs (property tax, insurance, maintenance, and management), expect roughly 2.5% to 3.5% net yield before financing, depending on the specific ZIP code. The high combined state and city income tax rate is a drag, but depreciation and mortgage interest deductions provide meaningful shelter. Investors in higher tax brackets should work with a CPA familiar with New York rental property to maximize these deductions.

The key risk is vacancy. New York tenant protection laws make eviction slow and costly, and prolonged vacancies at Bronx rent levels ($2,522 to $3,732 per month) represent significant lost income. Screening carefully and budgeting for the occasional month of vacancy is essential.

Data reflects market conditions as of April 2026. For more on how we calculate these figures, see our data sources and market score methodology.

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.