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Cancún's Airbnb market offers solid investment potential with average annual returns of 6-10% gross yield for well-located properties.
The Hotel Zone and Downtown areas consistently attract the highest occupancy rates, with 1-2 bedroom properties generating an average of MXN18,000-23,000 ($1,000-$1,300 USD) monthly income. However, success requires careful location selection, active management, and understanding seasonal fluctuations that can significantly impact profitability.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Cancún's short-term rental market shows strong demand for 1-2 bedroom properties in the Hotel Zone, with average nightly rates of MXN1,098 ($64 USD) and 59% occupancy rates.
Net yields typically range from 3-7% after expenses, making it more profitable than long-term rentals but requiring active management and seasonal planning.
| Property Type | Average Purchase Price | Monthly Income Potential | Gross Yield Range |
|---|---|---|---|
| 1-bedroom apartment | MXN2.0-3.5 million ($120,000-200,000) | MXN15,000-20,000 ($850-1,150) | 6-8% |
| 2-bedroom condo | MXN3.5-5.5 million ($200,000-320,000) | MXN18,000-25,000 ($1,000-1,400) | 6-9% |
| 3-bedroom villa | MXN5.5-7.0 million ($320,000-400,000) | MXN25,000-35,000 ($1,400-2,000) | 7-10% |
| Beachfront luxury | MXN7.0+ million ($400,000+) | MXN30,000-50,000 ($1,700-2,900) | 5-8% |
What types of properties are in highest demand for Airbnb in Cancún?
One and two-bedroom properties dominate Cancún's Airbnb market, representing 65.1% of all active listings as of September 2025.
These smaller units attract couples, business travelers, and small friend groups who make up the majority of visitors to Cancún. Two-bedroom condos particularly excel because they can accommodate up to four guests while maintaining reasonable nightly rates.
Three-bedroom and larger properties account for 22% of the market, primarily targeting families and larger groups during peak vacation periods. However, these properties face more competition and longer vacancy periods during off-season months.
Luxury beachfront villas and well-equipped apartments with pools, modern amenities, and contemporary design consistently generate the highest revenue per square meter. Properties featuring ocean views, private balconies, and resort-style amenities command premium rates year-round.
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Which neighborhoods in Cancún attract the most short-term rental guests?
The Hotel Zone (Zona Hotelera) consistently generates the highest occupancy rates and nightly prices for Airbnb properties in Cancún.
This 14-mile strip offers direct beach access, top-tier security, and walking distance to major attractions like Coco Bongo, La Isla Shopping Village, and dozens of restaurants. Properties in the Hotel Zone typically achieve 65-75% occupancy rates compared to the city average of 59%.
Downtown Cancún, particularly areas near Tulum Avenue, Plaza Las Américas, and Parque de Las Palapas, attracts budget-conscious travelers and cultural enthusiasts. These neighborhoods offer 20-30% lower property purchase prices while still maintaining solid occupancy rates of 55-65%.
Puerto Cancún has emerged as a premium investment area since 2023, featuring upscale waterfront condos and exclusive amenities. This newer development attracts affluent travelers willing to pay premium rates for luxury accommodations.
Mercado 28 and Malecon Shopping Center areas provide good investment opportunities for investors targeting mid-market travelers seeking authentic local experiences while maintaining easy access to tourist attractions.
How much does it typically cost to buy or furnish a property suited for Airbnb in Cancún?
| Property Type | Purchase Price Range | Furnishing Costs | Total Investment |
|---|---|---|---|
| 1-bedroom downtown | MXN2.0-3.0 million ($120,000-180,000) | MXN30,000-60,000 ($1,500-3,500) | MXN2.03-3.06 million |
| 2-bedroom Hotel Zone | MXN4.0-6.0 million ($230,000-350,000) | MXN100,000-200,000 ($5,500-11,500) | MXN4.1-6.2 million |
| 2-bedroom beachfront | MXN5.5-7.5 million ($320,000-430,000) | MXN150,000-250,000 ($8,500-14,500) | MXN5.65-7.75 million |
| 3-bedroom villa | MXN6.0-9.0 million ($350,000-520,000) | MXN200,000-300,000 ($11,500-17,500) | MXN6.2-9.3 million |
| Luxury beachfront | MXN8.0+ million ($460,000+) | MXN250,000-400,000 ($14,500-23,000) | MXN8.25+ million |
What's the average nightly rate and occupancy rate for similar listings in the area?
Cancún's Airbnb market shows an average daily rate of MXN1,098 ($64 USD) across all property types as of September 2025.
The overall occupancy rate sits at 59%, with top-performing listings achieving 74% occupancy through professional management and dynamic pricing strategies. One-bedroom properties typically charge MXN800-1,200 ($45-70 USD) per night, while two-bedroom units command MXN1,200-1,800 ($70-105 USD).
Hotel Zone properties consistently outperform downtown locations, with average nightly rates 25-40% higher and occupancy rates exceeding 65%. Beachfront properties can charge MXN2,000-4,000 ($115-230 USD) per night during peak season.
Seasonal variations significantly impact both rates and occupancy. December and July represent peak months with occupancy rates reaching 80-90% and nightly rates increasing by 30-50% above annual averages.
Properties targeting the luxury segment (MXN2,500+ per night) face more volatile occupancy but generate higher revenue per occupied night, making professional management essential for optimizing pricing strategies.
What's the realistic monthly rental income you can expect based on current market trends?
Well-located Airbnb properties in Cancún generate an average monthly income of MXN18,481 ($1,077 USD) based on current market data.
One-bedroom properties in downtown areas typically produce MXN12,000-18,000 ($700-1,050 USD) monthly, while Hotel Zone units of the same size can generate MXN18,000-25,000 ($1,050-1,450 USD). Two-bedroom condos represent the sweet spot, earning MXN20,000-30,000 ($1,150-1,750 USD) monthly with proper management.
Three-bedroom properties and luxury villas can achieve MXN35,000-55,000 ($2,000-3,200 USD) monthly during peak performance, but face significant seasonal fluctuations. During low season (September-November), expect income to drop by 40-60% from peak levels.
Professional property management services, while costing 10-20% of revenue, often increase overall income by 15-25% through optimized pricing, faster booking responses, and better guest experiences leading to higher ratings.
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What's the gross yield when you compare annual income to the property's total purchase and setup costs?
Cancún's Airbnb market delivers gross yields ranging from 6-10% for well-positioned properties when comparing annual rental income to total investment costs.
One-bedroom properties in downtown areas typically achieve 7-9% gross yields, with annual income of MXN180,000-240,000 ($10,500-14,000 USD) against total investments of MXN2.5-3.5 million. Hotel Zone properties command higher prices but also generate superior income, maintaining similar yield ranges.
Two-bedroom condos represent the optimal investment category, consistently delivering 6-8% gross yields with annual incomes of MXN240,000-360,000 ($14,000-21,000 USD). These properties balance purchase price, rental demand, and operational efficiency effectively.
Luxury beachfront properties often show lower gross yields of 5-7% due to higher acquisition costs, but they typically provide better long-term appreciation potential and attract premium guests year-round.
Three-bedroom villas can achieve 8-10% gross yields when targeting group bookings and family vacations, though they require more active management and marketing to maintain consistent occupancy.
What recurring expenses should you account for, like cleaning, utilities, HOA fees, and management costs?
Successful Airbnb operations in Cancún require careful budgeting for multiple recurring expenses that can consume 35-50% of gross rental income.
- Cleaning fees: MXN800-1,500 ($50-85 USD) per turnover, averaging MXN6,000-12,000 ($350-700 USD) monthly for busy properties
- Utilities: MXN2,500-4,000 ($145-230 USD) monthly for electricity, water, internet, and gas, with air conditioning being the largest expense
- HOA fees: MXN1,200-4,000 ($70-230 USD) monthly, with beachfront properties charging premium rates for amenities and maintenance
- Property management: 10-20% of gross revenue if using professional services, typically worth the investment for optimization
- Insurance and taxes: MXN2,000-5,000 ($115-290 USD) monthly depending on property value and coverage levels
Additional costs include regular maintenance, furniture replacement, guest supplies, and marketing expenses that can add another MXN3,000-8,000 ($175-460 USD) monthly to operating budgets.
After all expenses and taxes, what's the estimated net yield or profit margin?
Net yields for Cancún Airbnb properties typically range from 3-7% after accounting for all operating expenses, taxes, and management costs.
Properties generating MXN20,000 ($1,150 USD) monthly in gross income usually net MXN8,000-12,000 ($460-700 USD) after expenses, translating to 3-5% annual net yields for average performers. Top-tier properties with professional management can achieve 5-7% net yields through optimized operations.
Downtown properties often deliver higher net yields (4-6%) due to lower purchase prices and HOA fees, while beachfront locations may show 3-5% net yields despite higher gross income due to elevated operating costs and property taxes.
Mexican tax obligations for foreign property owners include annual property taxes (0.1-0.3% of assessed value) and income taxes on rental profits, which can reduce net yields by an additional 0.5-1.5 percentage points depending on tax planning strategies.
Seasonal cash flow management becomes crucial, as low-season months may generate insufficient income to cover fixed expenses, requiring reserves from peak-season profits to maintain positive annual returns.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How do these returns compare to renting the same property long-term instead of on Airbnb?
Long-term rental properties in Cancún typically generate 15-30% lower gross income compared to successful Airbnb operations, but offer significantly more stable cash flows and lower operating costs.
A two-bedroom condo earning MXN20,000 ($1,150 USD) monthly on Airbnb would likely rent long-term for MXN12,000-16,000 ($700-925 USD) monthly. However, long-term rentals eliminate cleaning fees, reduce utility costs, and require minimal management oversight.
Net yields for long-term rentals usually range from 2-5%, compared to 3-7% for Airbnb properties. The gap narrows when factoring in Airbnb's higher management intensity, vacancy risks, and seasonal fluctuations that can leave properties empty for extended periods.
Long-term rentals provide predictable monthly income with 95-98% occupancy rates, while Airbnb properties face occupancy risks, especially during low season when rates drop significantly and competition intensifies among short-term rental operators.
It's something we develop in our Mexico property pack.
What local regulations, permits, or zoning rules apply to short-term rentals in Cancún?
Cancún maintains relatively lenient regulations for short-term rentals as of September 2025, but registration with local authorities is mandatory for all Airbnb operations.
Property owners must register their units with the Municipal Tourism Department and obtain a tourism service license, which typically costs MXN2,000-5,000 ($115-290 USD) annually. This registration process requires proof of property ownership, tax compliance, and basic safety certifications.
Zoning restrictions primarily affect residential neighborhoods outside the Hotel Zone, where some areas limit short-term rentals to protect local housing availability. Most condominiums in tourist areas explicitly allow vacation rentals, but individual HOA bylaws may impose additional restrictions or fees.
Emerging regulations focus on guest tracking, safety standards, and taxation compliance. New requirements introduced in 2024-2025 include digital guest registration systems and enhanced tax reporting to federal authorities.
Future regulatory changes may include occupancy limits, noise restrictions, and increased taxation on short-term rental income, making it essential to stay updated with evolving local laws that could impact profitability.
What seasonal trends or tourism patterns might affect your occupancy and pricing?
Cancún's tourism follows predictable seasonal patterns that significantly impact Airbnb occupancy rates and pricing power throughout the year.
Peak season runs from December through March, when North American winter weather drives maximum demand. During these months, occupancy rates can reach 80-90% with nightly rates increasing by 30-50% above annual averages. December specifically shows the highest performance due to holiday travel.
July represents a secondary peak driven by summer family vacations, achieving 70-80% occupancy rates and premium pricing for properties that can accommodate larger groups and families.
Low season spans September through November, coinciding with hurricane season and back-to-school periods in North America. Occupancy rates drop to 35-50% during these months, with nightly rates falling 20-40% below peak levels, significantly impacting monthly income.
Spring break periods (March-April) create short-term demand spikes for properties targeting younger travelers, while wedding season (October-May) drives bookings for luxury accommodations and group rentals throughout the region.
What risks or challenges could impact profitability, such as competition, maintenance, or market downturns?
Cancún's Airbnb market faces several significant risks that can substantially impact investment profitability and long-term returns.
- Market saturation: Increasing numbers of new Airbnb listings create downward pressure on rates and occupancy, particularly in popular neighborhoods where supply growth outpaces demand
- Hurricane and weather risks: Tropical storms can force property closures, damage buildings, and deter bookings for extended periods, with insurance often covering only partial losses
- Regulatory changes: Government policies restricting short-term rentals, increasing taxes, or imposing new compliance requirements can quickly reduce profitability margins
- Tourism volatility: Global events, economic downturns, or negative publicity about Mexico's safety can dramatically reduce visitor numbers and rental demand
- Maintenance intensity: Beachfront properties require constant upkeep due to salt air and humidity, while high turnover rates accelerate furniture and appliance replacement needs
Currency fluctuations between the Mexican peso and major tourist currencies can impact both property values and rental income when converted to foreign currencies, affecting international investors' returns significantly.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Cancún's Airbnb market offers attractive investment opportunities for investors willing to actively manage their properties and navigate seasonal fluctuations.
Success requires careful location selection, professional management, and sufficient capital reserves to handle low-season periods and unexpected maintenance costs.