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Mérida's Airbnb market shows strong potential with entire homes commanding up to $200-600 per night in prime locations. Colonial houses in Centro Histórico and modern properties in northern neighborhoods like Altabrisa are particularly profitable, generating 8-15% gross yields annually. However, high operating costs and seasonal fluctuations mean net yields typically settle around 7-9%, still outperforming traditional rentals but requiring active management and regulatory compliance.
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Mérida's Airbnb market favors entire colonial houses and modern homes with pools, generating $1,500-4,000 monthly in prime neighborhoods like Centro Histórico and Altabrisa.
Operating costs consume 40-50% of gross revenue through cleaning, utilities, platform fees, and management, leaving net yields of 7-9% annually.
| Property Type | Average Nightly Rate (USD) | Typical Occupancy Rate | Monthly Gross Income |
|---|---|---|---|
| 1-2 Bedroom House | $80-120 | 60-65% | $1,500-2,400 |
| 3-4 Bedroom House | $120-200 | 55-60% | $2,000-3,600 |
| Luxury Property (5+ beds) | $200-600 | 45-55% | $2,700-9,900 |
| Centro Histórico Colonial | $100-250 | 65-70% | $1,950-5,250 |
| Modern Northern Areas | $90-180 | 55-65% | $1,485-3,510 |
| Pool Properties | $120-300 | 60-70% | $2,160-6,300 |
| Standard Properties | $75-76 (average) | 55% (median) | $1,238-1,254 |
What types of properties in Mérida tend to perform best on Airbnb?
Entire homes, particularly colonial houses rather than apartments, dominate Mérida's most profitable Airbnb listings.
Houses represent 81% of active Airbnb listings in Mérida and consistently rank as the top earners. The most successful properties are colonial houses with 3-7 bedrooms that feature private pools, gardens, and restored colonial architectural elements. These properties cater effectively to families, group travelers, and event guests who value space and authentic Mexican charm.
One-bedroom and two-bedroom houses also perform strongly, making up approximately 69% of all listings in the city. These smaller properties attract couples, solo travelers, and small groups who prefer the privacy and character of a standalone house over apartment living. The combination of colonial architecture with modern amenities like air conditioning, WiFi, and updated kitchens creates the ideal balance that guests seek.
Properties with outdoor spaces command premium rates across all categories. Houses with courtyards, terraces, or especially private pools see both higher average daily rates and better occupancy levels compared to properties without these features. The year-round warm climate in Mérida makes outdoor amenities particularly valuable to visitors.
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Which neighborhoods are most popular with Airbnb guests and why?
Centro Histórico and the Paseo de Montejo corridor represent the most sought-after neighborhoods for Airbnb guests in Mérida.
Centro Histórico attracts guests primarily for its walkability and proximity to major tourist attractions, restaurants, and cultural sites. The colonial charm of this area provides an authentic Mexican experience that international visitors specifically seek. Properties in this zone can command premium rates due to their central location and the ability for guests to explore much of the city on foot.
The northern neighborhoods of Altabrisa, Campestre, Montecristo, Benito Juárez Norte, and García Gineres have gained significant popularity, especially among expat and remote worker segments. These areas offer modern amenities, enhanced safety, reliable internet infrastructure, and easy access to shopping centers, restaurants, and transportation links. Properties in these neighborhoods tend to attract longer-stay guests and digital nomads willing to pay higher rates for comfort and convenience.
The Paseo de Montejo area combines the best of both worlds, offering historic elegance with modern accessibility. Properties along or near this famous boulevard benefit from the prestige of the location while maintaining proximity to both the historic center and the modern northern districts.
Safety considerations significantly influence neighborhood popularity, with the northern zones and well-maintained areas of Centro Histórico consistently receiving higher guest ratings and repeat bookings compared to other parts of the city.
How does property size and layout affect occupancy and income potential?
Property size directly impacts both booking frequency and revenue potential, with smaller properties achieving higher occupancy rates while larger properties command premium nightly rates.
One- to two-bedroom homes maintain the highest occupancy rates throughout the year because they appeal to the largest segment of travelers: couples and solo visitors. These properties typically see occupancy rates of 60-65% annually, with more consistent booking patterns and fewer vacant periods. The lower nightly rates make them accessible to a broader range of guests, resulting in more frequent turnover.
Larger homes with 3-8 bedrooms operate on a different model, commanding significantly higher nightly rates ranging from $200-600+ per night for luxury properties. However, their occupancy rates tend to be more variable, often settling around 45-55% annually. These properties excel during peak seasons, holidays, and special events when groups are willing to pay premium rates for exclusive accommodations.
Layout optimization proves crucial for maximizing revenue regardless of size. Properties with multiple bathrooms, open living spaces, and well-defined sleeping areas receive higher guest satisfaction scores. Homes with pools or outdoor entertainment areas can charge 20-30% more than similar properties without these features, while also achieving better occupancy during Mérida's warm months.
The sweet spot for many investors appears to be 3-4 bedroom properties, which balance higher nightly rates with reasonable occupancy levels, often generating $2,000-3,600 monthly in gross revenue when properly managed and located in desirable neighborhoods.
What is the average nightly rate across different property types in Mérida?
As of September 2025, Mérida's Airbnb market shows an average nightly rate of $75-76 across all property types, with significant variation based on size, location, and amenities.
| Property Category | Average Nightly Rate (USD) | Peak Season Premium |
|---|---|---|
| Standard 1-2 Bedroom House | $80-120 | +15-25% |
| Mid-size 3-4 Bedroom House | $120-200 | +20-30% |
| Luxury 5+ Bedroom Property | $200-600+ | +25-40% |
| Centro Histórico Colonial | $100-250 | +20-35% |
| Northern Modern Areas | $90-180 | +15-25% |
| Properties with Pools | $120-300 | +20-30% |
| Basic Properties (no pool/garden) | $60-100 | +10-20% |
Properties in Centro Histórico with authentic colonial features command the highest premiums, especially during peak tourist seasons from November through April. The combination of historical significance, walkable location, and unique architecture allows these properties to charge 30-50% more than comparable modern homes in other areas.
Luxury properties with exceptional amenities like private pools, multiple bedrooms, and high-end finishes can achieve nightly rates exceeding $600, particularly during special events or holiday periods when group bookings are common.
What is the typical occupancy rate throughout the year, including low and high seasons?
Mérida's Airbnb market experiences a median occupancy rate of 55%, translating to approximately 201 booked nights annually, with significant seasonal variation affecting profitability.
High season runs from November through April, when occupancy rates can reach 70% or higher for well-positioned properties. This period coincides with cooler, more comfortable weather and peak tourist activity, including the winter influx of North American visitors escaping cold climates. Properties in Centro Histórico and northern neighborhoods often achieve 75-80% occupancy during these prime months.
Low season spans May through September, when occupancy rates typically drop to 35-45% for most properties. The hot, humid weather and reduced tourist activity during this period particularly impact larger and luxury properties, which may see occupancy fall below 40%. Smaller, air-conditioned properties tend to maintain better occupancy during low season as they attract budget-conscious travelers and longer-term stays.
Properties with pools and outdoor amenities paradoxically perform better during shoulder months (May and October) when weather is warm but not oppressive, allowing guests to enjoy outdoor features while avoiding peak-season crowds and prices.
Successful hosts adapt their pricing strategies seasonally, often reducing rates by 20-30% during low season while increasing them by 25-40% during peak periods to optimize both occupancy and revenue throughout the year.
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How much gross rental income can a well-located Airbnb realistically generate per month?
Well-located Airbnb properties in Mérida's prime neighborhoods realistically generate between $1,500-4,000 monthly in gross rental income, with exceptional properties exceeding these ranges during peak seasons.
Standard properties in desirable locations like Centro Histórico or northern neighborhoods typically produce $1,500-2,500 monthly. These figures assume properties are properly marketed, competitively priced, and maintained to high standards. Properties with 2-3 bedrooms, basic amenities, and good locations form the backbone of this income range.
Premium properties with pools, colonial charm, or luxury amenities can generate $2,500-4,000 monthly in gross revenue. These properties typically feature 3-4 bedrooms, distinctive architectural elements, prime locations, and superior guest amenities. During peak season months (December-February), these properties often exceed $4,000 monthly.
Luxury and event-focused properties with 5+ bedrooms, private pools, and exceptional locations can substantially exceed $4,000 monthly, particularly during peak months and special events. Some premium properties in Centro Histórico achieve $6,000-8,000+ monthly during their best months, though this performance requires exceptional properties and professional management.
Annual gross yields for prime locations typically range from 8-15%, making Mérida's Airbnb market competitive with other investment opportunities while offering the potential for appreciation in the rapidly growing real estate market.
What are the key operating costs, such as cleaning, utilities, management fees, and platform commissions?
Operating costs typically consume 40-50% of gross Airbnb revenue in Mérida, with platform commissions, cleaning, utilities, and management fees representing the largest expense categories.
Platform commissions represent the single largest expense, with Airbnb charging 13-15% of each booking. This fee is automatically deducted from payments and cannot be avoided, making it a fixed cost that must be factored into all pricing decisions. For a property generating $2,500 monthly, this represents $325-375 in unavoidable platform fees.
Cleaning costs range from $50-150 per turnover, depending on property size and local labor rates. For a property with 60% occupancy and average 3-night stays, cleaning expenses can reach $400-600 monthly. Properties with pools, multiple bathrooms, or luxury finishes face higher cleaning costs due to increased complexity and time requirements.
Utilities including electricity, water, internet, and cable typically cost $70-200 monthly for smaller homes, scaling significantly higher for properties with pools, multiple air conditioning units, or larger spaces. Properties with pools can see utility costs of $200-400 monthly, particularly during hot months when air conditioning usage peaks.
Management fees for professional services range from 10-25% of gross revenue, though many successful investors choose to self-manage their properties to maximize returns. Additional monthly expenses include maintenance and restocking ($150-300+), pest control, HOA fees where applicable, and insurance coverage for short-term rentals.
How does the math look when moving from gross income to net income after all expenses?
Converting gross Airbnb income to net income typically reduces returns by 40-50%, leaving property owners with net yields of 7-9% annually after all operating expenses.
Consider a typical example with $2,500 monthly gross revenue: Management fees at 15% cost $375, Airbnb commissions at 15% cost another $375, and cleaning, maintenance, and utilities total approximately $300. This leaves net income of roughly $1,450 monthly, representing a 42% reduction from gross revenue.
For a property purchased at $250,000, this $1,450 monthly net income translates to $17,400 annually, yielding approximately 7% net return. This calculation excludes property taxes, insurance, and potential vacancy periods, which can further reduce net yields to 6-8% depending on individual circumstances.
Higher-end properties often achieve better net yield percentages because premium rates can absorb fixed costs more effectively. A luxury property generating $4,000 monthly might retain $2,400-2,600 after expenses, achieving 8-9% net yields on higher purchase prices.
Successful operators optimize net income through efficient cleaning protocols, energy-efficient appliances, competitive utility contracts, and strategic pricing to maximize occupancy during high-rate periods while minimizing vacancy during low seasons.
It's something we develop in our Mexico property pack.
What is the approximate gross yield and net yield compared to property purchase prices?
Gross yields for well-positioned Airbnb properties in Mérida range from 8-15% annually, while net yields after all expenses typically settle between 7-9% for most investors.
Gross yield calculations show strong performance across property categories. A $200,000 property generating $2,000 monthly ($24,000 annually) achieves a 12% gross yield, while a $300,000 luxury property earning $3,000 monthly yields 12% gross as well. Premium properties in Centro Histórico can achieve gross yields of 13-15% when properly positioned and managed.
Net yields present a more realistic picture after accounting for all operating expenses. The same $200,000 property netting $1,200 monthly after expenses yields 7.2% annually, while the $300,000 property keeping $1,800 monthly achieves a 7.2% net yield. This consistency across price points reflects the scalable nature of operating costs in Mérida's market.
Properties purchased below $150,000 in emerging neighborhoods can achieve gross yields exceeding 15%, though these locations may face challenges with occupancy and guest quality. Conversely, luxury properties above $400,000 may see gross yields of 8-12% but often achieve more stable occupancy and premium rates.
Compared to traditional long-term rentals yielding 4-6% annually in Mérida, Airbnb properties provide substantially higher returns but require significantly more active management and market knowledge to maintain profitability.
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.
Would a long-term rental strategy provide more stability or higher returns than Airbnb?
Long-term rental strategies provide significantly more stability but lower returns compared to Airbnb, with traditional rentals yielding 4-6% annually versus Airbnb's 8-15% gross yields in Mérida.
Stability represents the primary advantage of long-term rentals. Fixed monthly income from annual lease agreements eliminates seasonal fluctuations, vacancy concerns, and the intensive management requirements of short-term rentals. Long-term tenants typically handle their own utilities, maintenance of appliances, and day-to-day property care, reducing owner involvement to periodic inspections and major repairs.
Financial returns favor Airbnb despite higher operational complexity. A property generating $800 monthly in long-term rental income might produce $2,000-2,500 monthly through Airbnb, even after accounting for higher expenses and vacancy periods. This 2-3x revenue multiple often justifies the additional management burden for investors seeking maximum returns.
Risk profiles differ substantially between strategies. Long-term rentals face tenant default, property damage, and difficulty removing problematic renters, but these risks are generally predictable and manageable. Airbnb faces regulatory changes, platform dependency, seasonal demand fluctuations, and intensive competition, creating different but potentially more volatile risk exposure.
Market timing considerations may influence strategy choice. As Mérida's Airbnb market matures and competition increases, long-term rental returns may become more attractive relative to the effort required for short-term rental management, particularly for investors prioritizing passive income over maximum returns.
What local regulations, taxes, or restrictions could impact short-term rentals in Mérida?
Short-term rental operators in Mérida face multiple tax obligations and regulatory requirements that significantly impact net profitability and operational compliance.
Mexican income tax represents the largest tax burden, with Airbnb automatically deducting approximately 25% for income tax if operators don't register as businesses. Alternatively, investors can file separate tax returns to claim deductions for property expenses, utilities, maintenance, and depreciation, potentially reducing effective tax rates to 15-20% for properly documented expenses.
Yucatán's lodging tax adds 3% to guest bills, automatically collected by Airbnb and remitted to local authorities. While this doesn't directly impact owner income, it increases the total cost for guests and may affect competitiveness against untaxed accommodations or properties in neighboring states without lodging taxes.
Value Added Tax (VAT) of 16% applies to all short-term rental transactions, creating additional compliance requirements for property owners. This tax must be properly documented and remitted to Mexican tax authorities, requiring formal business registration and accounting systems for most operators.
Occupancy limits based on bedroom count and local ordinances require careful monitoring to avoid violations that could result in fines or operational restrictions. Enhanced tax authority monitoring now tracks all Airbnb transactions, making income declaration mandatory and eliminating previous opportunities for tax avoidance.
Future regulatory risks include potential occupancy caps, neighborhood zoning restrictions, or additional licensing requirements as local authorities respond to community concerns about tourism impacts and housing availability for local residents.
What trends or risks should investors keep in mind when projecting future profitability?
Mérida's real estate market shows strong growth with property prices increasing 14-15% in 2025, driven by expat migration and digital nomad influx, but this growth creates both opportunities and risks for Airbnb investors.
Rising competition represents the most immediate risk as more investors enter the profitable Airbnb market. The number of listings continues growing faster than tourist arrivals, potentially leading to oversupply in certain neighborhoods and downward pressure on occupancy rates and pricing power. Properties without distinctive features or prime locations may struggle to maintain current profitability levels.
Regulatory uncertainty poses significant long-term risks as local authorities grapple with tourism impacts on housing availability and community character. Potential restrictions could include occupancy caps, neighborhood zoning limitations, additional licensing requirements, or increased taxation specifically targeting short-term rentals. These changes could dramatically alter investment returns with little advance notice.
Operating cost inflation affects profitability as utilities, cleaning services, maintenance, and property management fees increase alongside general economic inflation. Properties with thin margins may find profitability eroded if revenue growth doesn't keep pace with expense increases, particularly during economic downturns when tourist spending typically decreases.
Currency fluctuation between pesos and dollars creates additional complexity for international investors, as property appreciation in pesos may not translate to dollar gains if currency exchange rates move unfavorably. Successful long-term investors should maintain realistic expectations about sustained high yields and develop contingency plans for various market scenarios.
It's something we develop in our Mexico property pack.
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.
Mérida's Airbnb market offers compelling returns of 8-15% gross yields, significantly outperforming traditional rental strategies.
However, success requires careful property selection, active management, and compliance with evolving regulations that could impact future profitability.
Sources
- AirROI - Mérida Market Report
- ARPR Mexico - Best Neighborhoods in Mérida
- Airbtics - Annual Airbnb Revenue in Mérida
- AirDNA - Mérida Market Overview
- TheLatinvestor - Mérida Property Analysis
- Brevitas - Best Locations for Airbnb in Mexico
- MexTax - Tax Requirements for Airbnb in Mexico
- Yucatan Magazine - Lodging Tax Information
- TheLatinvestor - Mérida Real Estate Trends
- TheLatinvestor - Mérida Price Forecasts