Table of contents
Table of contents
Loans
*Quote takes 1 minute, no credit pull
Insurance*1 quote from 40+ carriers
Listings*New listings daily
Table of contents
Table of contents
Baltimore vs Buffalo: Rental Investing Stats
Last updated: January 15, 2025
| City comparison | Baltimore, MD | Buffalo, NY |
|---|---|---|
| Median home price | $184,000 | $224,000 |
| Median home price growth (10-Yr) | 68.8% | 72.6% |
| Single family market rent | $1,750 | $1,800 |
| Single family market rent growth (10-Yr) | 39.0% | 33.3% |
| Rent yield | 11.4% | 9.6% |
| Population | 565,239 | 274,678 |
| Population growth (10-Yr) | -9.2% | 6.4% |
| Unemployment rate | 4.5% | 3.6% |
| Property tax rate | 2.248% | 2.63% |
| Public school rating (out of 10) | 3 | 4 |
| Median household income | $59,623 | $46,458 |
| Income to rent | 2.84 | 2.15 |
| Median household income growth (10-Yr) | 41.1% | 45.2% |
| Poverty rate (%) | 20.2% | 27.6% |
| Civilian labor force | 62.3% | 59.9% |
| High school grad or higher | 88.3% | 86.6% |
| Bachelors degree or higher | 37.1% | 31.2% |
| Median age | 36.5 | 35.7 |
| Foreign born | 9.1% | 10.4% |
| Housing units | 294,353 | 140,554 |
| Housing units per capita | 0.52 | 0.51 |
| Occupancy | 88% | 88% |
| Renter occupancy | 52% | 57% |
| Housing unit turnover | 14.1% | 15.3% |
| Insurance Premium | $1,380 | $1,680 |
| DSCR at 80% LTV (7.625% interest rate) | 1.17 | 0.96 |
Data compiled from the following sources:
- U.S. Census Bureau
- U.S. Bureau of Labor Statistics
- Zillow
- Neighborhood Scout
- PropStream
1. Property Values and Growth
- Median Home Price: Baltimore has a lower median home price ($184,000) compared to Buffalo ($224,000), making it a more affordable entry point for investors.
- 10-Year Price Growth: Both cities experienced significant home price growth, with Buffalo slightly outperforming Baltimore (72.6% vs. 68.8%).
2. Rental Market
- Market Rent: Rental income is comparable, with Buffalo ($1,800) slightly exceeding Baltimore ($1,750).
- Rent Growth (10-Yr): Baltimore shows stronger rent growth (39.0% vs. 33.3%), indicating a healthier long-term rental market.
- Rent Yield: Baltimore significantly outperforms Buffalo in rent yield (11.4% vs. 9.6%), making it more attractive for cash flow-oriented investors.
3. Economic Indicators
- Population Trends: Buffalo has seen population growth (6.4%), while Baltimore's population is declining (-9.2%). A growing population in Buffalo suggests increasing demand for housing over time.
- Unemployment Rate: Buffalo’s unemployment rate (3.6%) is better than Baltimore’s (4.5%), reflecting a potentially more stable labor market.
- Median Household Income: Baltimore has a higher median income ($59,623) than Buffalo ($46,458), with both cities showing strong 10-year income growth (Baltimore 41.1%, Buffalo 45.2%).
4. Affordability
- Income-to-Rent Ratio: Baltimore’s income-to-rent ratio (2.84) is higher than Buffalo’s (2.15), suggesting renters in Baltimore have more financial capacity relative to rent costs.
- Poverty Rate: Baltimore’s poverty rate (20.2%) is lower than Buffalo’s (27.6%), indicating better overall economic conditions.
5. Housing Market Dynamics
- Occupancy: Both cities have similar housing occupancy rates (88%) and housing units per capita.
- Renter Occupancy: Buffalo has a slightly higher percentage of renters (57% vs. 52%), suggesting stronger rental demand.
- Housing Turnover: Buffalo’s turnover rate (15.3%) is marginally higher than Baltimore’s (14.1%), which could indicate a more dynamic housing market.
6. Cost Factors
- Property Taxes: Baltimore has a lower property tax rate (2.248%) compared to Buffalo (2.63%), which can significantly impact net operating income (NOI).
- Insurance Premiums: Baltimore’s insurance premiums are more affordable ($1,380 vs. $1,680), further enhancing cash flow potential.
7. Investment Metrics
- DSCR at 80% LTV: Baltimore’s Debt Service Coverage Ratio (DSCR) is above 1.0 (1.17), indicating cash flow positive properties at 80% leverage. Buffalo’s DSCR is below 1.0 (0.96), implying cash flow challenges.
8. Quality of Life Indicators
- Education: Public school ratings are low in both cities but slightly higher in Buffalo (4 vs. 3).
- Labor Force Participation: Baltimore has a marginally higher civilian labor force participation rate (62.3% vs. 59.9%).
- Higher Education: A higher percentage of Baltimore residents hold bachelor’s degrees or higher (37.1% vs. 31.2%).
Investment Recommendations: Baltimore vs Buffalo
- Baltimore, MD: Ideal for investors seeking strong cash flow due to its superior rent yield, affordability, and favorable DSCR. However, population decline and slightly higher unemployment pose risks.
- Buffalo, NY: More suitable for investors focused on long-term appreciation given its strong home price and population growth. However, higher property taxes, lower rent yield, and less favorable DSCR may reduce immediate returns.
Baltimore stands out for cash flow, while Buffalo offers a balanced appreciation and demand story. Your choice should align with your investment strategy (cash flow vs. appreciation).
Overall this comparison is too close to call and comes out to your specific investing goals and preferences.
Build wealth through real estate with OfferMarket
If you've found this helpful and would like access to more rental property investing insights, sign up for OfferMarket. Membership is free and comes with the following benefits:
🏠 Off market properties 💰 Private lending ☂️ Landlord insurance rate shopping 💡 Community & insights
If you are not already a member, we hope you will accept our invitation to join us!
