Executive Summary: The South Wedge housing market is highly competitive, scoring 99 out of 100, with average home prices of $286,000 (up 9.9% year-over-year) and homes selling in approximately 9 days. With median rents at $1,994 and median real estate prices at $314,339, the neighborhood presents compelling yield opportunities for cash flow-focused investors.

The South Wedge housing market demonstrates exceptional competitiveness, with homes receiving multiple offers, often with waived contingencies, selling for about 20% above list price and going pending in around 9 days. This velocity exceeds most secondary markets, where properties typically remain listed for weeks or months.

South Wedge median real estate price of $314,339 is less expensive than 73.6% of New York neighborhoods and 59.2% of all U.S. neighborhoods (NeighborhoodScout, 2025). This relative affordability creates opportunities for investors priced out of primary markets.

The average rental price in South Wedge is currently $1,994 based on NeighborhoodScout's exclusive analysis, with rents lower in price than 70.5% of New York neighborhoods (NeighborhoodScout, 2025). However, Niche (2024) reports a median rent price of $993, highlighting significant variation within the neighborhood.

Rochester's median rent for all bedrooms and property types is $1,400, representing 35% below the national median (Zillow Rental Manager, 2024). This discount reflects local income levels but also suggests potential upside as the market develops.

According to CBRE, 2025 Multifamily Cap rates continue on a flat curve from the end of 2024, with Q3 to Q4 2024 rates expanding an average of 15 basis points on Class A and B properties, going from 4.90% to 5.05% (Apartment Loan Store, 2025).

Monroe County, New York, in the Rochester metro area projects annual gross rental yields of 12.8% on three-bedroom properties, ranking among the highest nationally (ATTOM, 2024).

Rochester area investment properties show traditional rental cap rates varying widely by neighborhood, ranging from 1.61% to 11.58%, with most properties falling between 7-10% (Mashvisor, 2024). Specific South Wedge properties require individual analysis.

The average gross rental yield in the United States stands at 6.51% in Q3 2025, previously 6.10% in Q3 2024 (Global Property Guide, 2025). Rochester's yields significantly exceed these national averages, though higher returns reflect higher risks.

Rochester MSA population reached 1,057,218 in 2024 (Federal Reserve Economic Data, 2025). However, the city of Rochester's population decreased from 219,826 in 2000 to 207,274 in 2023, a 0.61% year-over-year decrease from 2022 (Neilsberg, 2024).

Recent data shows improvement: Monroe County saw a surge of 1,301 residents, exceeding the nation's average with a population estimate of 752,202 as of July 1, 2024 (Rochester First, 2025).

Healthcare employs 81,000 workers regionally, with the University of Rochester and its Medical Center as the largest employer in the city and region with almost 20,000 employees (Greater Rochester Chamber of Commerce, 2024; Celebrate City Living, 2018).

Nonfarm payrolls averaged 516,300 jobs as of February 2025, representing an increase of 6,300 jobs or 1.2% from a year earlier, with unemployment at 3.6% (HUD Market Analysis, 2025).

Tech employment in Rochester is projected to grow 12.6% between 2020 and 2030, surpassing the national average, with over 33,000 tech jobs offering an average annual salary of $95,490 (Nucamp, 2024).

South Wedge real estate consists of 62.7% small 2, 3, and 4 unit apartment buildings, higher than 99.4% of all U.S. neighborhoods, with 75.5% of residential real estate built before 1939 (NeighborhoodScout, 2025).

This aged housing stock presents both opportunities and challenges. Multi-unit properties enable house-hacking strategies, but century-old buildings require substantial maintenance reserves.

In the South Wedge neighborhood, 59.9% of the working population is employed in executive, management, and professional occupations (NeighborhoodScout, 2025).

Many young professionals live in South Wedge with residents tending to be liberal, and the median rent price is $993 with most residents renting their homes (Niche, 2024).

5.5% of residents in the South Wedge neighborhood commute on bicycle to work daily, more than 98.6% of all neighborhoods in the U.S. (NeighborhoodScout, 2025).

South Wedge is very walkable with numerous bars, restaurants, coffee shops, and parks nearby (Niche, 2024).

Rochester has a crime rate of 58 per one thousand residents, with one's chance of becoming a victim of either violent or property crime at one in 17 (NeighborhoodScout, 2025).

South Wedge crime rates are 138% higher than the national average, though the neighborhood is safer than 41% of cities in New York (AreaVibes, 2024).

The cost of crime per resident in South Wedge is $727 per year, which is $262 more than the national average (CrimeGrade, 2025).

Operating expenses have increased, primarily insurance, taxes and the cost of labor for maintenance, with net operating incomes declining during the last two years (Apartment Loan Store, 2025).

Apartment and multifamily loan rates start from 5.64% for HUD loans and 5.94% for FHA loans (Apartment Loan Store, 2025).

During the 12 months ending January 2025, the average sales price of new and existing homes rose 10% to $261,200 (HUD Market Analysis, 2025).

Rochester's median household income is $46,628 with a poverty rate of 26.63% (World Population Review, 2025). Rigorous screening focusing on stable employment with major institutions is essential.

CBRE predicts prices should come down slightly in 2025 as net operating incomes continue to erode and more multifamily mortgages mature (Apartment Loan Store, 2025).

South Wedge presents a classic value investment opportunity: unfashionable assets in transitioning neighborhoods generating immediate positive cash flow. While Rochester's population declined by 12,552 between 2000 and 2023 (Neilsberg, 2024), recent stabilization and diverse employment base support rental demand.

For investors prioritizing yield over appreciation, South Wedge's combination of median prices 40.8% below U.S. averages (NeighborhoodScout, 2025) and 12.8% gross rental yields (ATTOM, 2024) merits serious consideration—provided they account for maintenance costs and security concerns in their underwriting.

Apartment Loan Store. (2025, May 6). CAP rates for apartment/multifamily properties in Rochester, New York. https://apartmentloanstore.com/rochester/new-york/cap-loan-rates

AreaVibes. (2024). South Wedge, NY crime rates: Stats & map - Rochester. https://www.areavibes.com/rochester-ny/south+wedge/crime/

ATTOM. (2024, March 14). Single-family rental investment returns to rise in 2024. Housing Wire. https://www.housingwire.com/articles/single-family-rental-investment-returns-to-rise-in-2024-attom/

Celebrate City Living. (2018, February 8). Rochester's economy: Deep, distinctive, diverse. https://celebratecityliving.com/about-rochester/working/

CrimeGrade. (2025, March 6). South Wedge, Rochester, NY map of crime rates. https://crimegrade.org/safest-places-in-south-wedge-rochester-ny/

Federal Reserve Bank of St. Louis. (2025, March 14). Resident population in Rochester, NY (MSA) [ROHPOP]. FRED. https://fred.stlouisfed.org/series/ROHPOP

Global Property Guide. (2025). Rental yields in the United States in 2025, Q3. https://www.globalpropertyguide.com/north-america/united-states/rental-yields

Greater Rochester Chamber of Commerce. (2024, December 9). Greater Rochester nine-county regional economy overview. https://www.greaterrochesterchamber.com/about-us/regional-economy-overview/

HUD User. (2025). Market at a glance Rochester, NY. U.S. Department of Housing and Urban Development. https://www.huduser.gov/portal/MCCharts/php/pdf/364038.pdf

Mashvisor. (2024, October 14). Investment properties & real estate guide in Rochester, NY. https://www.mashvisor.com/cities/ny/rochester-investment-property-guide

NeighborhoodScout. (2025, April 4). South Wedge Rochester, NY 14620, neighborhood profile. https://www.neighborhoodscout.com/ny/rochester/south-wedge

Neilsberg. (2024, April 29). Rochester, NY population by year - 2024 update. https://www.neilsberg.com/insights/rochester-ny-population-by-year/

Niche. (2024). South Wedge - Rochester, NY - Reviews, rankings and crime. https://www.niche.com/places-to-live/n/south-wedge-rochester-ny/

Nucamp. (2024, August 17). Getting a job in tech in Rochester in 2024: The complete guide. https://www.nucamp.co/blog/coding-bootcamp-rochester-ny-getting-a-job-in-tech-in-rochester-in-2024-the-complete-guide

Redfin. (2024). South Wedge, NY housing market - Rochester. https://www.redfin.com/neighborhood/125015/NY/Rochester/South-Wedge/housing-market

Rochester First. (2025, March 14). Census data: Rochester area sees significant population growth. https://www.rochesterfirst.com/news/census-data-rochester-area-sees-significant-population-growth/

World Population Review. (2025). Rochester, New York population 2025. https://worldpopulationreview.com/us-cities/new-york/rochester

Zillow Rental Manager. (2024, June). Average rental price in Rochester, NY & market trends. https://www.zillow.com/rental-manager/market-trends/rochester-ny/

Disclaimer: This analysis is based on publicly available data as of October 2025. Real estate markets change rapidly. Investors should conduct independent due diligence and consult with local professionals before making investment decisions. Past performance does not guarantee future results. This newsletter is for educational purposes only and is not financial, investment, tax, legal, or accounting advice. I'm not a CPA, tax professional, financial advisor, investment advisor, broker-dealer, attorney, or any licensed professional. My content reflects personal opinions and research that should never be your sole basis for financial decisions. Tax laws and regulations are complex, change frequently, and vary by jurisdiction and individual circumstances. Before making any financial, investment, or tax decisions, consult qualified licensed professionals in your jurisdiction and conduct independent research. I make no representations or warranties about accuracy, completeness, or reliability of any information provided. All content is "as is" without warranties of any kind. You use this newsletter entirely at your own risk. I disclaim all liability for any losses, damages, costs, or expenses arising from your use of this information, including direct, indirect, incidental, consequential, or punitive damages. Past performance doesn't guarantee future results, all investments carry risk and may lose value, and tax situations are highly individual. Nothing here creates an advisor-client relationship. By reading this newsletter, you agree to these limitations, will seek appropriate professional advice before taking action, and agree to hold me harmless and indemnify me from any claims or damages arising from your use of this information.