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The Dominican Republic's Airbnb market generates impressive returns, with properties in prime locations achieving gross rental yields between 7% and 12%.
Short-term rental properties in beachfront areas like Punta Cana and urban centers like Santo Domingo consistently outperform long-term rentals by nearly double the returns, making the Dominican Republic one of the most profitable Caribbean destinations for vacation rental investments.
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The Dominican Republic's Airbnb market offers strong profitability with properties in Santo Domingo averaging $1,037 monthly income and Punta Cana properties reaching up to $2,989 monthly.
Net rental yields typically range from 5.5% to 8% after expenses, with beachfront properties in premium locations achieving the highest returns and occupancy rates.
| Location | Average Nightly Rate | Monthly Income | Gross Yield | Net Yield |
|---|---|---|---|---|
| Santo Domingo (Piantini) | $78 | $1,384 | 7.63% | 5.5-6% |
| Punta Cana (General) | $114 | $1,616 | 7.33% | 6-7% |
| Uvero Alto (Premium) | $151 | $2,989 | 10-12% | 7-8% |
| Zona Colonial | $65 | $1,037 | 7.63% | 5.5-6% |
| Cap Cana (Luxury) | $151 | $2,500+ | 10-15% | 7-8% |
| Bella Vista | $68 | $1,200 | 7.63% | 5.5-6% |
| Bávaro Beach | $114 | $1,800 | 8-10% | 6-7% |
Which neighborhoods in the Dominican Republic have the strongest Airbnb demand?
Santo Domingo's Piantini, Ensanche Naco, Bella Vista, and Zona Colonial generate the highest Airbnb demand and returns in the capital city.
These urban districts attract both tourists and business travelers, with Piantini and Ensanche Naco commanding the highest nightly rates at $78 per night. Zona Colonial appeals to visitors seeking historic charm, while Bella Vista offers a balance of affordability and location at $68 per night.
In the beach destinations, Punta Cana's submarkets of Uvero Alto, Punta El Cortecito, Bávaro, and Cap Cana rank as the top-performing areas for short-term rentals. These zones cater to international tourists seeking beachfront experiences and luxury amenities.
Uvero Alto and Cap Cana specifically target the premium market segment, with properties achieving nightly rates up to $151 and monthly incomes reaching $2,989. The high tourist traffic and resort infrastructure in these areas create consistent year-round demand.
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What property types perform best on Airbnb in the Dominican Republic?
Two-bedroom apartments and condos dominate the Santo Domingo market, consistently achieving the highest occupancy rates up to 57% and annual revenues around $16,500.
In urban areas, properties with parking, pools, gyms, and city views attract the most bookings. One-bedroom units maintain stable occupancy but generate lower revenue, while three-bedroom apartments can capture group bookings but may have slightly lower occupancy rates.
Beach destinations favor three-plus-bedroom villas with pools and luxury amenities, particularly in Punta Cana and Cap Cana areas. These properties cater to families and groups seeking vacation experiences, with the larger size justifying higher nightly rates.
Historic houses in Zona Colonial and Bella Vista also perform well when they feature unique architectural elements or distinctive amenities. The charm factor significantly influences booking decisions for properties in these heritage areas.
Beachfront condos with two to three bedrooms typically deliver occupancy rates up to 64%, especially when located within walking distance of major beaches or resort complexes.
What property sizes attract the highest occupancy rates?
Two-bedroom properties consistently achieve the highest occupancy rates across both urban and beach markets in the Dominican Republic.
In Santo Domingo, two-bedroom apartments reach occupancy rates up to 57% while generating approximately $16,500 in annual revenue. This configuration appeals to couples, small families, and business travelers who need extra space without paying premium prices for larger units.
Punta Cana's two to three-bedroom condos and villas achieve occupancy rates up to 64%, particularly in beachside locations. The sweet spot appears to be properties that can accommodate four to six guests comfortably.
One-bedroom units maintain steady demand but typically generate 15-20% lower revenue than their two-bedroom counterparts. Three-bedroom properties can command higher nightly rates but may experience slightly lower occupancy due to the smaller pool of guests requiring that much space.
Properties with flexible sleeping arrangements, such as sofa beds or convertible spaces, tend to outperform rigid configurations by accommodating varying group sizes throughout the year.
What are the average nightly rates in high-demand areas?
Santo Domingo's premium neighborhoods command nightly rates between $65 and $78, with significant variation based on specific location and amenities.
| Location | Average Nightly Rate | Property Type |
|---|---|---|
| Piantini/Ensanche Naco | $78 | 2-3 bedroom apartments |
| Bella Vista | $68 | Apartments/houses |
| Zona Colonial | $65 | Historic properties |
| Santo Domingo citywide | $65 | Mixed property types |
| Punta Cana general | $114 | Beach condos/villas |
| Uvero Alto/Cap Cana | $151 | Luxury beachfront |
| Bávaro | $114 | Resort-adjacent properties |
Punta Cana's beach and resort districts achieve significantly higher rates, with the overall average reaching $114 per night. Premium zones like Uvero Alto and Cap Cana command $151 per night due to their luxury positioning and beachfront access.
Seasonal variations can push peak-season rates 20-30% higher than these averages, particularly during winter months when North American tourists escape cold weather.
How many nights per month can you realistically rent out a property?
Santo Domingo properties average 53% occupancy, translating to approximately 16 nights rented per month or 193 nights annually.
This occupancy rate reflects the consistent demand from business travelers, tourists, and local visitors throughout the year. The capital's diverse appeal beyond just beach tourism helps maintain steady bookings across seasons.
Punta Cana properties achieve 49% average occupancy, equivalent to about 15 nights per month or 179 nights per year. Despite the slightly lower percentage, the higher nightly rates in beach areas often compensate for the reduced occupancy.
Peak months (December through March) can see occupancy rates climb to 70-80%, while slower periods (September through November) may drop to 30-40%. Properties in premium locations or with exceptional amenities typically outperform these averages by 10-15%.
Effective pricing strategies and property management can push well-located properties to achieve 60-65% annual occupancy, particularly those offering unique experiences or superior amenities.
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What does that translate to in average monthly rental income?
Santo Domingo properties generate an average monthly income of $1,037, with significant variation based on neighborhood and property quality.
Premium areas like Piantini and Ensanche Naco achieve monthly incomes of $1,384, reflecting their higher nightly rates and strong occupancy. These upscale neighborhoods attract business travelers and affluent tourists willing to pay premium prices for location and amenities.
Punta Cana properties average $1,616 monthly, benefiting from higher nightly rates despite slightly lower occupancy than urban areas. The beach destination premium and tourist appeal drive these stronger revenue figures.
Uvero Alto represents the top tier of the market, with properties generating up to $2,989 monthly. These luxury beachfront properties command premium rates and attract high-spending international visitors.
Properties in secondary neighborhoods or with fewer amenities typically generate 20-30% below these averages, while exceptional properties with unique features or prime locations can exceed them by similar margins.
What are the typical running costs for Airbnb properties?
Cleaning fees range from $40-80 per turnover for apartments and $100-250 for larger villas, representing one of the most significant variable costs.
Utilities typically cost $80-200 monthly for apartments and $250+ for villas, depending on air conditioning usage, pool maintenance, and guest consumption patterns. Properties with pools or extensive outdoor areas face higher utility expenses.
Property management services charge 15-25% of gross monthly rental income for full-service management, including guest communication, key exchanges, maintenance coordination, and cleaning oversight. This percentage increases for properties requiring more intensive management or remote locations.
Maintenance costs should be budgeted at 5-8% of annual rental income to cover repairs, supplies, furniture replacement, and regular upkeep. Beach properties face higher maintenance costs due to salt air corrosion and increased wear from vacation usage.
Additional costs include insurance premiums, internet and cable services, property taxes, and occasional capital improvements to maintain competitiveness in the market.
How do taxes and fees affect net income?
Airbnb charges a 15% service fee on gross bookings, immediately reducing revenue before any other expenses.
ITBIS (Dominican VAT) applies at 18% on invoices to guests, though this may vary if the host operates as a registered business with different tax obligations. Many hosts include this tax in their listed prices to avoid surprises.
ISR (income tax) follows a progressive structure, with registered companies paying up to 27% on rental income. Individual hosts may face different rates depending on their total income and registration status.
Standard deductions apply for legitimate business expenses including cleaning fees, property management, maintenance, utilities, and platform fees. Proper documentation of all expenses becomes crucial for tax optimization.
Net rental yield typically runs 1.5-2% below gross yield after accounting for all taxes, fees, and operating expenses. Properties generating 8% gross yields commonly achieve 6-6.5% net yields after all deductions.
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We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Dominican Republic 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.
What does the gross rental yield look like compared to purchase price?
Santo Domingo properties achieve gross rental yields of 7.63%, making them competitive within the Caribbean market for urban investments.
Punta Cana and Bávaro properties generate 7.33% gross yields, reflecting strong tourism demand balanced against higher purchase prices in beach destinations. These yields remain attractive compared to many established Caribbean markets.
Beachfront properties in premium locations achieve gross yields between 7-12%, with some exceptional properties reaching up to 15% during peak seasons. The higher yields reflect both strong demand and the ability to command premium nightly rates.
Dominican Republic properties consistently yield 6-10% gross returns, outperforming neighboring markets like the Bahamas, Costa Rica, and Jamaica. This performance advantage stems from lower property acquisition costs combined with strong rental demand.
Properties in emerging or developing areas may achieve even higher yields, though investors should consider factors like infrastructure development, tourist accessibility, and long-term market sustainability when evaluating these opportunities.
What is the expected net yield after all expenses?
Net rental yields average 5.5-6% for well-located properties after deducting all operating expenses, taxes, and fees.
Prime beach zones and luxury properties with superior amenities can achieve net yields of 7-8%, reflecting their ability to command premium rates and maintain high occupancy. These properties often have higher gross yields that offset their increased operating costs.
Urban properties in Santo Domingo typically achieve net yields in the 5.5-6% range, with premium neighborhoods like Piantini potentially reaching 6.5% when well-managed. The consistent occupancy in urban areas helps maintain stable returns.
Properties requiring extensive management or located in remote areas may see net yields drop to 4-5% due to higher operational costs and management fees. Location accessibility significantly impacts profitability.
Well-maintained properties with effective marketing and management strategies consistently outperform market averages by 1-2 percentage points, emphasizing the importance of professional operation and strategic positioning.
Would long-term rentals be more stable or profitable?
Airbnb yields typically generate nearly double the returns of long-term rentals for the same property, despite increased operational complexity.
Long-term rentals in Santo Domingo average 3-4% net yields, while comparable Airbnb properties achieve 5.5-6% net yields. The gap widens further in tourist areas where long-term rental demand remains limited but vacation rental demand stays strong.
Long-term rentals offer greater stability with predictable monthly income, fewer management requirements, and reduced wear on the property. However, the Dominican Republic's lenient short-term rental regulations and high occupancy rates make Airbnb risks more manageable than in other markets.
Seasonal fluctuations in Airbnb income can create cash flow challenges during slower months, requiring property owners to maintain reserves or have alternative income sources. Long-term rentals eliminate this volatility.
The choice often depends on the owner's involvement level, risk tolerance, and financial goals. Properties in prime tourist areas strongly favor short-term rentals, while those in residential neighborhoods may perform similarly with either strategy.
What are the government rules for short-term rentals?
As of September 2025, the Dominican Republic maintains lenient regulations for short-term rentals with no countrywide restrictions limiting Airbnb operations.
The government finalized a regulatory framework in 2025 that focuses on registration requirements and tax compliance rather than operational restrictions. Most cities allow short-term rentals with minimal bureaucratic barriers.
Registration and tax compliance remain the primary requirements, with hosts needing to properly report income and pay applicable taxes. The framework emphasizes guest security, safety standards, and fair competition with traditional hotels.
Zoning restrictions may affect select buildings, particularly in certain areas of Santo Domingo where building associations or municipal regulations could limit short-term rental activities. These restrictions remain property-specific rather than widespread.
Enforcement priorities target safety standards, proper tax reporting, and ensuring vacation rentals don't negatively impact residential communities. The regulatory environment remains significantly more favorable than many Caribbean destinations with strict limitations.
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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.
The Dominican Republic's Airbnb market presents compelling opportunities for property investors seeking high-yield vacation rental investments in the Caribbean region.
With net yields ranging from 5.5% to 8% and lenient regulatory environment, the country offers a favorable balance of profitability and operational ease for short-term rental properties.
Sources
- Airbtics - Annual Airbnb Revenue in Santo Domingo
- Airbtics - Annual Airbnb Revenue in Punta Cana
- AirROI - Santo Domingo Market Report
- Airbtics - Airbnb Cleaning Fee Calculator
- Global Property Guide - Dominican Republic Rental Yields
- Airbnb - Service Fees
- Dominican Today - Airbnb Tax Obligations
- Blue Sail Realty - Dominican Republic Investment Properties
- Dominican Today - Airbnb Regulation Framework
- The LatinVestor - Dominican Republic Price Forecasts