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Puerto Vallarta's Airbnb market delivers solid returns with average gross yields of 6-10% and net yields of 4-6% as of September 2025.
The most profitable neighborhoods are Conchas Chinas with annual revenues reaching MXN1,961,988 ($114,335), Zona Romántica with 22% price appreciation, and emerging Versalles where prices remain 20% below Centro. Two-bedroom condos and luxury villas consistently outperform studios, with properties in prime locations achieving 70%+ occupancy during peak season and monthly incomes ranging from $1,900-$10,000 depending on property type and location.
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Puerto Vallarta's Airbnb market offers attractive returns with gross yields of 6-10% and net yields of 4-6%, significantly outperforming long-term rentals at 2-3% net yields.
Conchas Chinas leads profitability with luxury villas earning up to $466 per night, while Zona Romántica and Versalles offer strong performance for mid-range properties at $88-$154 per night.
| Property Type | Average Daily Rate | Monthly Income Range | Gross Yield | Net Yield |
|---|---|---|---|---|
| Studio | $50-$88 | $700-$1,200 | 5-6% | 3-4% |
| 2-Bedroom Condo | $100-$160 | $1,900-$2,700 | 7-10% | 4-6% |
| 3-4 Bedroom Villa | $350-$500 | $3,500-$10,000 | 10%+ | 6-8% |
| Luxury Villa (Conchas Chinas) | Up to $466 | $5,000-$15,000 | 10.6% | 7-8% |
| Zona Romántica Boutique | $154 | $2,500-$3,500 | 8.8% | 5-7% |
| Marina Vallarta Family Unit | $140-$154 | $2,200-$3,000 | 6.5% | 4-5% |
| Versalles Modern Condo | $88-$120 | $1,800-$2,400 | 8-9% | 5-6% |
What types of properties are actually performing best on Airbnb in Puerto Vallarta?
Two-bedroom to three-bedroom condos and luxury villas with 4+ bedrooms consistently deliver the highest yields in Puerto Vallarta's Airbnb market as of September 2025.
Luxury villas in premium neighborhoods like Conchas Chinas generate the highest absolute revenue, with annual earnings reaching MXN1,961,988 ($114,335) and nightly rates up to MXN7,996 ($466). These properties maintain 67% occupancy rates throughout the year.
Mid-range two-bedroom condos represent the sweet spot for most investors, offering gross yields of 7-10% while maintaining occupancy rates between 60-70%. These properties typically earn $1,900-$2,700 monthly and command nightly rates of $100-$160 depending on location and amenities.
Boutique one-bedroom options in trendy neighborhoods like Zona Romántica and Versalles also perform strongly due to premium pricing and consistent demand from couples and solo travelers. These units benefit from walkable locations and proximity to restaurants and nightlife.
Studios underperform compared to larger units, typically achieving gross yields of only 5-6% and monthly incomes of $700-$1,200, though they maintain steady occupancy in well-located buildings.
Which neighborhoods are the most profitable for short-term rentals?
Conchas Chinas tops the profitability rankings with properties generating gross yields of 10.6% and the highest average daily rates in Puerto Vallarta.
Zona Romántica follows closely with strong returns and 22% price appreciation over the past year, achieving average daily rates of MXN2,642 ($154) and 63% occupancy. This neighborhood attracts both leisure tourists and digital nomads due to its walkable streets and vibrant dining scene.
Versalles emerges as the fastest-growing neighborhood for Airbnb investments, with modern condos and lofts priced 20% below Centro rates while delivering strong yields. The area benefits from an emerging culinary scene and growing popularity among younger travelers.
Marina Vallarta and Las Glorias provide solid family-oriented rentals with average daily rates of MXN2,402-2,642 ($140-$154) and 63% occupancy. These areas appeal to families seeking safe, resort-style accommodations with marina access.
5 de Diciembre offers affordable entry points with an emerging scene popular among digital nomads and budget-conscious travelers seeking authentic local experiences.
How much can you realistically charge per night depending on property type and size?
| Property Type | Nightly Rate Range (USD) | Peak Season Premium |
|---|---|---|
| Studio Apartment | $50-$88 | 15-25% |
| 1-Bedroom Condo | $70-$120 | 20-30% |
| 2-Bedroom Condo | $100-$160 | 25-35% |
| 3-Bedroom Condo | $180-$280 | 30-40% |
| Luxury Villa (4+ bed) | $350-$500 | 40-60% |
| Conchas Chinas Villa | $400-$466 | 50-70% |
| Oceanfront Premium | $300-$600 | 60-80% |
What's the average occupancy rate for Airbnbs in Puerto Vallarta right now?
Puerto Vallarta's Airbnb market maintains an average occupancy rate of 60% across all property types as of September 2025.
Top-performing neighborhoods achieve significantly higher rates, with Conchas Chinas reaching 67% and Zona Romántica maintaining 63% occupancy throughout the year. Well-managed properties in premium locations consistently achieve 70%+ occupancy during peak season from November through April.
Seasonal variations show peak occupancy of 74% for top-rated homes during high season (November-April), while shoulder seasons (May-June, September-October) typically see 55-65% occupancy. Low season (July-August) drops to 45-55% but benefits from digital nomads and off-season travelers seeking lower rates.
Professional management and guest experience significantly impact occupancy rates, with properties featuring excellent reviews and responsive hosts achieving 10-15% higher occupancy than average listings.
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What's the typical gross monthly rental income across different property categories?
Average gross monthly income across all Puerto Vallarta Airbnb listings reaches MXN33,153 ($1,932) as of September 2025.
High-performing listings generate MXN54,954+ ($3,205+) monthly, with luxury villas in Conchas Chinas earning $5,000-$15,000 per month during peak performance periods. Presale new condos in popular areas typically produce $1,800-$4,000 monthly income.
Studio apartments generate the lowest absolute income at $700-$1,200 monthly but offer consistent cash flow with minimal management complexity. Two-bedroom condos represent the optimal balance, producing $1,900-$2,700 monthly while maintaining manageable operational requirements.
Three to four-bedroom villas command $3,500-$10,000 monthly depending on size, location, and amenities. Properties with ocean views, pools, or unique architectural features typically earn 20-40% premiums over standard units in the same neighborhood.
Seasonal income fluctuations show peak months (December-March) generating 40-60% higher revenues than low season months (July-August), making cash flow management crucial for investment planning.
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How much do you lose to Airbnb fees, utilities, cleaning, and management costs?
Total operating expenses typically consume 35-50% of gross rental income for Puerto Vallarta Airbnb properties, depending on management approach and property type.
Airbnb commissions range from 3-15%, with most hosts paying 3-5% through the simplified fee structure. Professional property management adds 8-30% of gross revenue, with full-service management typically costing 10-12% including guest communication, maintenance coordination, and marketing optimization.
Cleaning fees vary significantly by property size, ranging from $47-$160 per turnover for standard apartments and reaching $350+ for larger villas. Properties with higher turnover rates see cleaning costs consume 8-15% of gross income.
Utility costs fluctuate seasonally, with summer months (air conditioning season) costing $100-$150 monthly for average condos, while winter months drop to $35-$50. Standard monthly utilities include water ($12), gas ($15-$35), and internet ($25).
HOA fees and maintenance range from $80-$800 monthly depending on building amenities and services. Luxury developments with pools, gyms, and concierge services command higher fees but often justify premium nightly rates.
What does that look like when you calculate gross yield and then net yield?
Puerto Vallarta's Airbnb market delivers gross yields of 6-10% across top neighborhoods, with premium locations like Conchas Chinas achieving 10.6% gross yields.
Zona Romántica and Hotel Zone properties typically generate 8.8% gross yields, while Marina Vallarta averages 6.5% gross yields due to higher property prices relative to rental income potential. Emerging neighborhoods like Versalles often outperform established areas on yield metrics due to lower acquisition costs.
Net yields after deducting management, cleaning, taxes, utilities, and maintenance costs typically range from 4-6% for most properties. Exceptional listings with optimal management and premium positioning may achieve 7%+ net yields.
The yield calculation gap between gross and net reflects the operational intensity of short-term rentals compared to long-term leasing. Properties requiring minimal management (newer buildings, established guest bases) tend toward the higher end of net yield ranges.
Investors should budget for 40-50% expense ratios when projecting net yields, with larger properties often achieving better expense efficiency due to economies of scale in management and maintenance costs.
How does profitability change if you compare a studio versus a 2-bedroom or a villa?
Two-bedroom condos significantly outperform studios on both gross and net yield metrics while offering superior income stability and growth potential.
Studios achieve modest 5-6% gross yields and 3-4% net yields with monthly incomes of $700-$1,200, making them suitable for conservative investors seeking steady cash flow with minimal management complexity. However, studios face limited appreciation potential and reduced booking flexibility.
Two-bedroom condos deliver 7-10% gross yields and 4-6% net yields while generating $1,900-$2,700 monthly income. These properties attract diverse guest types including families, couples, and business travelers, providing booking stability and premium rate opportunities.
Luxury villas (3-4+ bedrooms) command the highest yields at 10%+ gross and 6-8% net, with monthly incomes of $3,500-$10,000. These properties benefit from group bookings, special events, and extended stays but require sophisticated management and higher initial investment.
Operating expense ratios favor larger properties due to economies of scale in management, with villas achieving 35-40% expense ratios compared to 45-50% for studios. Premium properties also demonstrate superior appreciation potential in Puerto Vallarta's evolving luxury market.
The income per square foot metric clearly favors two-bedroom and villa configurations over studios, making them more attractive for investors prioritizing total return optimization.
Would it actually be better to rent long-term instead of running an Airbnb?
Short-term Airbnb rentals consistently outperform long-term leasing in Puerto Vallarta, delivering 6-10% gross yields compared to 2-3% net yields for traditional rentals.
Long-term rentals offer predictable monthly income and minimal operational complexity but sacrifice significant income potential. A property generating $2,500 monthly on Airbnb might only command $800-$1,200 in long-term rent, representing a 50-60% income reduction.
Airbnb properties require active management, guest communication, cleaning coordination, and seasonal demand fluctuations but compensate with higher profitability and appreciation potential. The additional effort typically justifies the income premium for investors willing to accept operational complexity.
Risk profiles differ significantly between strategies. Long-term rentals provide stability but expose investors to tenant default, property damage, and limited rent growth. Airbnb rentals face seasonal volatility and regulatory risks but offer immediate rate adjustments and diversified income streams.
Market conditions in Puerto Vallarta favor short-term rentals due to robust tourism demand, limited hotel inventory in premium neighborhoods, and growing digital nomad populations seeking month-long stays at premium rates.
What local taxes, regulations, or restrictions should you factor in before investing?
Puerto Vallarta Airbnb investors must comply with Mexican federal tax requirements including Income Tax (ISR) and Value Added Tax (IVA) on rental earnings.
Investors with RFC (Mexican tax ID) face 4% ISR plus 8% IVA automatically withheld by Airbnb. Those without RFC experience 20% ISR plus 16% IVA withholding, making RFC registration essential for profitability optimization.
Municipal lodging taxes of 1-3% may apply depending on property location and local regulations. These taxes are typically collected by hosts and remitted to local authorities quarterly.
Individual condo developments and HOAs may prohibit or restrict short-term rentals through building bylaws. Investors must verify rental permissions before purchase, as retrofit restrictions can eliminate Airbnb viability entirely.
Puerto Vallarta remains Airbnb-friendly at the municipal level with no city-wide short-term rental bans as of September 2025. However, investors should monitor regulatory developments as tourism pressure increases on infrastructure and local housing markets.
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How stable is demand throughout the year given Puerto Vallarta's seasonality?
Puerto Vallarta's Airbnb demand shows pronounced seasonality with high season (November-April) generating 40-60% higher revenues than low season months.
Peak demand occurs from December through March when North American travelers escape winter weather, with February typically representing the highest-earning month for most properties. During this period, occupancy rates reach 74% for top-rated properties and nightly rates command 50-80% premiums over shoulder season pricing.
Shoulder seasons (May-June, September-October) maintain steady demand at 55-65% occupancy with modest rate reductions. These periods attract value-conscious travelers and extend the profitable season beyond traditional winter tourism patterns.
Low season (July-August) presents challenges with 45-55% occupancy due to heat, humidity, and hurricane season concerns. However, digital nomads, budget travelers, and locals seeking staycations provide consistent baseline demand during these months.
Demand stability benefits from Puerto Vallarta's diversified visitor profile including leisure tourists, business travelers, digital nomads, and special event attendees. This mix reduces dependence on any single travel segment and cushions seasonal fluctuations compared to purely leisure-focused destinations.
What's the breakeven point on investment, and how long does it typically take to reach it?
Most Puerto Vallarta Airbnb investments achieve breakeven within 8-12 years based solely on rental income, with presale purchases and high-appreciation neighborhoods often reaching profitability faster.
Well-positioned properties generating $23,000-$35,000 annually in gross income typically recover initial investments within this timeframe, assuming 30-50% down payment financing and consistent market performance.
Capital appreciation significantly accelerates total return timelines, with presale properties and trending neighborhoods experiencing 8-15% annual appreciation. Investors combining rental income with appreciation often achieve effective breakeven within 5-8 years.
Leverage strategies using 30-50% down payments can improve cash-on-cash returns but extend absolute payback periods due to financing costs. Properties purchased with higher leverage ratios require stronger rental performance to achieve positive cash flow.
Breakeven calculations must account for property management, maintenance, taxes, and periodic renovations. Properties requiring significant initial improvements or ongoing maintenance may extend payback periods by 2-3 years compared to turnkey investments.
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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.
Puerto Vallarta's Airbnb market presents compelling investment opportunities with gross yields of 6-10% significantly outperforming long-term rentals and many traditional investment vehicles.
Success depends on strategic neighborhood selection, property type optimization, and professional management, with two-bedroom condos and luxury villas in Conchas Chinas, Zona Romántica, and Versalles delivering the strongest risk-adjusted returns.
Sources
- Airbtics - Annual Airbnb Revenue in Puerto Vallarta Mexico
- The LatinVestor - Real Estate Boom Puerto Vallarta
- Property Journal - Investment in Airbnb and Short Rentals in Puerto Vallarta
- The Wandering Investor - Full Guide to Real Estate Investment in Puerto Vallarta
- The LatinVestor - Puerto Vallarta Which Area
- VR Realty - Expected Returns Puerto Vallarta Presale Properties 2025
- AirDNA - Airbnb Cleaning Fees What Hosts Need to Know
- Grateful Gnomads - Cost of Living in Puerto Vallarta
- MexLife - Puerto Vallarta Cost of Living
- MexTax - Implications of Not Registering RFC with Airbnb in Mexico