Buffalo Gap experienced a boom when an iron furnace was built there by the Buffalo Gap Furnace Company. A town of about 70 houses, a railroad station, a post office, and several schools were built around the furnace in the coming years. In 1850, the Buffalo Gap Presbyterian Church was founded about a mile west of the church's current location.[3]
The furnace was unsuccessful, leaving Buffalo Gap a ghost town. The town was taken over by the Buffalo Gap Development company, which aspired to make Buffalo Gap a thriving town again.[3]
In 2004, the community was described as a "bedroom community" for nearby Staunton, where people could enjoy country life, but not have to travel far to get to a city.[4]
As of 2004, the community had a population of "about 200 people".[4]