For many real estate investors and rental property owners, New York City still grabs the headlines; it's still one of the most popular vacation destinations in the world, and has some of the most expensive (and fastest-rising) rent prices.
But that doesn’t mean it’s the only place worth looking. Upstate and mid-sized markets in New York state are showing increasingly strong signals: tenants are moving in, rents are growing, purchase prices are more affordable, and regulatory burdens – while always important – are often less intense than in the city.
If you’re considering buying a property to rent out, whether as a long-term lease, vacation stay, or mid-term rentals, these markets could offer real cash flow opportunities. Before you buy, though, make sure to check out your landscape: rising rents, local laws and tax and cost inputs could impact your profit margin.
Below are five upstate markets in New York (outside NYC) that in 2025 are among the most promising for landlords. Each has growing populations, rising rents, or both, along with strong tenant demand.
1. Buffalo
Buffalo has a city population of about 276,000, with a metro area much larger. And while the city itself saw a very slight population dip from 2022 to 2023 (−0.1%), household income is rising and there is steady demand in the rental market.
Average rents in Buffalo are appealing for investors: as of September 2025, the median rent was around $1,375/month, up about $25 from 2024, according to Zillow. One-bedroom units average about $1,203, and two-bedroom units about $1,476.
Prior to that, rents in Buffalo have been growing at approximately 5.4% year-over-year (ending May 2024) among the apartment-market segment, placing it well above many pre-pandemic growth averages.
For investors, this means Buffalo offers relatively low entry costs, good rent growth, stable occupancy, and potential in both traditional long-term leasing and vacation or short stays, especially near Lake Erie or in attractive suburbs.
Additionally, Buffalo Bills games draw massive demand for vacation rentals during the NFL season (September through January).
2. Rochester
Rochester has about 204,000 people, with its metro area exceeding 1,060,000 residents. While the city has dealt with historic population decline, recent data suggests renewed interest in upstate living, affordability, and housing inventory absorbing quickly.
Average rent across Rochester is about $1,499/month for apartments (all bedroom types) as of mid-2025, with year-over-year increases in many neighborhoods.
Rents in Rochester rose by roughly $68 YoY in the year ending September 2025, also pushing occupancy high, indicating supply is tight and demand is strong.
That mix of a large metro footprint, more affordable housing than downstate, and decent rent growth makes Rochester a solid play for landlords focused on cash flow and stable tenants.
3. Albany / Capital Region (Albany-Schenectady-Troy)
Albany city proper is home to roughly 100,000 to 102,900 people (estimates put it around 102,925 in 2025), and the surrounding Capital Region metro (Albany-Schenectady-Troy) is over 900,000 residents. It had the largest year-over-year population gain among New York’s major metros in 2024, and the third largest in 2025, according to the Center for Economic Growth.
Average rents in Albany are rising; the average rent as of September 2025 for all property types was of $1,595, up over $100 from 2024.
The Capital Region’s population growth is modest but consistent. As of July 2023, its five-county metro had growth of around 0.12% over the prior year—the largest among NY’s metro areas.
For investors, Albany offers stable demand due to state government, universities, and an increasing number of people relocating from more expensive parts of the state or seeking lower cost of living. Short-term rental potential exists too in suburbs and scenic nearby areas, if allowed.
And nearby cities Schenectady and Troy are within an hour drive of the capital city, giving investors more options in the area.
4. Syracuse
Syracuse has about 148,620 people (as of 2020), with slight growth observed recently, marking its first decennial increase since 1930.
In rental-market data, Syracuse logged about 6.7% rent growth year-ending May 2024, one of the top in the state, with occupancy rates around 97.4%, which is strong.
That's not to mention the fact that Syracuse University, which enrolls over 15,000 undergraduate students and over 6,000 graduates (not. to mention professors, faculty and recent graduates), provides strong tenant demand year-round.
Syracuse is appealing where investors want lower acquisition cost, steady tenant base, and vacational/leisure upside (proximity to the Finger Lakes, Adirondacks).
5. Binghamton
Binghamton metro area has about 243,792 residents (estimated). Population growth has been lower than bigger markets, but affordability is a major draw for both tenants and landlords.
Perhaps even more than Syracuse, Binghamton is a college town through and through, hosting the state's flagship public university. Like most college towns, rent prices fluctuate seasonally, ballooning in September when students arrive and plateauing throughout the rest of their career.
For investors, Binghamton offers strong yield potential because purchase costs are generally lower. So even with modest rent levels, cash flow can look favorable. Long-term tenants are stable; short-term/vacation rental potential exists in nearby areas, but must be weighed against demand and local rules.
What this means for landlords and investor strategy
For landlords and investors, the data above shows that markets outside NYC are not just “cheaper” – they’re growing in a way that supports solid rental income. Buffalo and Rochester give good rent growth and large tenant pools. Albany offers stability and rising rents tied to state institutions. Syracuse shows occupancy and rent growth, and Binghamton delivers affordability + yield.
Use your cost models to factor in all expenses: insurance, maintenance, property management, vacancy, and local regulatory compliance. Also mind amenities, property condition, and location—these heavily impact rent achievable vs averages.
Read more: What landlords should know about New York state income tax
Conclusion
If you are looking for investment properties outside NYC, these five upstate New York markets – Buffalo, Rochester, Albany/Capital Region, Syracuse, and Binghamton – stand out in 2025. With rising rents, growing or stable populations, and favorable cost structures, they represent some of the best opportunities for landlords.
Make sure to pair your neighborhood-level research with these broader numbers. With careful underwriting, good property insurance, and attention to regulations, upstate New York can deliver both cash flow and long-term value.
No matter which market you choose to invest in, protecting your investment is just as important as choosing the right location. Every rental property comes with risks, from tenant damage to weather-related losses, and the best way to safeguard your returns is with the right coverage. If you own or are planning to buy a rental property in the Empire State, make sure you’re covered with New York landlord insurance designed to protect both your property and your income.
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