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Airbnb in Santo Domingo offers attractive returns with gross yields averaging 7-8% and net yields around 5.5-6%.
The Dominican Republic capital's short-term rental market is dominated by studios and 1-2 bedroom apartments, which make up 80.9% of listings. Prime neighborhoods like Piantini, Naco, and Zona Colonial consistently deliver the highest occupancy rates and nightly rates, with top properties earning $1,400-$1,600 monthly. However, new regulations starting August 2025 introduce stricter oversight and additional taxes for operators.
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Santo Domingo's Airbnb market shows strong profitability with average occupancy rates of 53% citywide and gross yields of 7-8%.
Prime neighborhoods like Piantini and Zona Colonial lead the market, while new regulations starting August 2025 will impact future operations.
| Neighborhood | Avg. Nightly Rate | Occupancy Rate | Monthly Revenue |
|---|---|---|---|
| Piantini/Naco | $78 | 57% | $1,385-$1,400 |
| Zona Colonial | $60-$75 | 74% (top properties) | $1,000+ |
| Bella Vista | $68 | 53% | $1,120 |
| Boca Chica | $78 | 31% | $527 |
| Citywide Average | $65-$66 | 53% | $1,037 |
Which neighborhoods in Santo Domingo work best for Airbnb rentals?
Zona Colonial stands out as the top-performing neighborhood for Airbnb rentals in Santo Domingo, attracting the highest number of tourists due to its UNESCO World Heritage status.
The historic Old Quarter benefits from dense tourist attractions, colonial architecture, and walkable streets that appeal to international visitors. Properties in Zona Colonial achieve occupancy rates up to 74% for well-managed listings, significantly above the city average of 53%.
Piantini, Naco, and Bella Vista form the second tier of high-demand areas, serving both leisure and business travelers. These upscale central districts offer modern amenities, safety, and proximity to business centers. Piantini and Naco specifically achieve the highest average nightly rates at $78, with strong occupancy rates of 57%.
Zona Universitaria attracts budget-conscious travelers and younger guests seeking nightlife access. While nightly rates are lower, consistent demand from university visitors and party-goers provides steady bookings throughout the year.
Boca Chica and Santo Domingo Este represent emerging opportunities for beach and airport access, though they currently show lower occupancy rates around 31% for Boca Chica specifically.
What property types generate the highest Airbnb returns?
Studios and 1-bedroom apartments dominate Santo Domingo's Airbnb market, representing 54.8% of all listings and serving primarily solo travelers and couples.
Combined with 2-bedroom units, these smaller properties make up 80.9% of total listings, with most accommodating 2-4 guests. This property type offers the best balance of affordability for guests and profitability for hosts, with lower operating costs and easier management compared to larger properties.
Larger homes with 4-10 bedrooms perform exceptionally well in tourist-heavy areas like Zona Colonial, especially for group bookings and special events. These properties command higher nightly rates but require more substantial initial investment and higher operating costs.
Waterfront and amenity-rich apartments in premium neighborhoods like Piantini, Naco, and Bella Vista consistently generate the highest revenues. Properties with pools, ocean views, or modern fitness facilities can charge premium rates and achieve occupancy rates above city averages.
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What occupancy rates can I expect across different areas?
Santo Domingo's citywide average occupancy rate sits at 53% as of September 2025, with significant variation between neighborhoods.
Zona Colonial leads with occupancy rates reaching 74% for top-performing properties, benefiting from consistent tourist flow and UNESCO World Heritage site appeal. The historic district's walkable attractions and cultural significance drive year-round demand from international visitors.
Piantini and Naco achieve solid occupancy rates of 57%, supported by business traveler demand and proximity to corporate centers. These upscale neighborhoods maintain steady bookings throughout the week, not just weekends.
Bella Vista follows closely with 53% occupancy, matching the city average while offering competitive nightly rates. The area benefits from central location and good transportation links.
Boca Chica shows the lowest occupancy at 31%, despite higher average nightly rates of $78. The beachfront location attracts weekend and holiday visitors but struggles with mid-week bookings and seasonal fluctuations.
How much can I charge per night for different property types and locations?
| Property Type | Zona Colonial | Piantini/Naco | Bella Vista | Boca Chica |
|---|---|---|---|---|
| Studio Apartment | $45-$60 | $55-$70 | $50-$65 | $60-$75 |
| 1-Bedroom Apt | $60-$75 | $70-$85 | $60-$75 | $70-$85 |
| 2-Bedroom Apt | $75-$95 | $85-$110 | $75-$90 | $85-$105 |
| 3+ Bedroom House | $120-$180 | $140-$200 | $110-$160 | $130-$190 |
| Luxury/Oceanview | $100-$150 | $120-$180 | $90-$140 | $110-$160 |
What monthly gross revenues do Airbnb hosts typically earn?
Monthly gross revenues in Santo Domingo vary significantly by location and property type, with citywide averages around $1,037 per month.
Piantini and Naco lead the market with typical monthly revenues of $1,385-$1,400 for well-managed properties. These upscale neighborhoods benefit from high nightly rates ($78 average) combined with strong occupancy rates (57%), creating consistent cash flow for hosts.
Zona Colonial properties generate $1,000+ monthly, with top-performing listings in prime colonial buildings earning significantly more. The area's 74% occupancy rate for successful properties compensates for slightly lower nightly rates of $60-$75.
Bella Vista hosts earn approximately $1,120 monthly, balancing moderate nightly rates ($68) with steady 53% occupancy. The central location attracts both tourists and business travelers throughout the year.
Boca Chica shows the most volatility, with average monthly revenues of just $527 despite higher nightly rates. The 31% occupancy rate reflects seasonal demand patterns and limited mid-week bookings in this beach location.
Top-earning properties with 2-3 bedrooms, ocean views, pools, or jacuzzis in prime districts can achieve $1,400-$1,600+ monthly or more during peak seasons.
What are the main operating costs for running an Airbnb?
Airbnb operating costs in Santo Domingo typically consume 25-35% of gross revenues, depending on property type and management approach.
Cleaning fees range from $40-$80 per booking and are usually passed directly to guests, though hosts often absorb costs for last-minute cancellations or deep cleaning needs. Professional cleaning services charge approximately $0.50-$1.00 per square meter for turnovers.
Monthly utilities average $150, covering electricity (the largest expense due to air conditioning), water, internet, and basic cable. Air conditioning costs spike during summer months and can reach $200+ for larger properties.
Insurance costs $40-$60 monthly for short-term rental coverage, which typically exceeds standard homeowner policies. Many providers now offer specific Airbnb host insurance products.
Supplies and amenities cost $30-$50 monthly, including toiletries, linens, towels, coffee, and basic groceries. Higher-end properties spend more on premium amenities to justify premium pricing.
Maintenance and repairs average $30-$100 monthly, varying with property age and guest turnover frequency. Newer properties require less maintenance, while high-traffic locations need more frequent touch-ups.
Airbnb's service fees take 3-5% of each booking, averaging $50-$90 monthly per $1,000 in gross revenue.
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What gross yields can I expect from Airbnb properties?
Gross yields for Airbnb properties in Santo Domingo average 7.48% annually, outperforming many traditional rental markets in the Caribbean region.
Property prices in central Santo Domingo range from $1,700-$2,200 per square meter, with two-bedroom apartments typically costing $150,000-$182,000. These prices provide a solid foundation for calculating realistic yield expectations.
One and two-bedroom apartments deliver gross yields between 7.35%-7.91%, with the city average settling at 7.48%. This calculation assumes average monthly revenues of $1,000-$1,400 against purchase prices in the $150,000-$180,000 range.
Prime properties in tourist-heavy Zona Colonial or business-focused Piantini can achieve gross yields exceeding 8% with optimal pricing strategies and professional management. These higher yields result from premium nightly rates and superior occupancy rates.
Gross yield calculations use annual rental income divided by total property acquisition costs, including purchase price, legal fees, and initial furnishing expenses.
What net yields remain after all expenses?
Net yields in Santo Domingo's Airbnb market typically run 1.5-2 percentage points below gross yields, settling in the 5.5%-6.0% range after accounting for all operating expenses.
Operating expenses typically consume 25-35% of gross revenues, including cleaning, utilities, maintenance, insurance, supplies, and platform fees. Professional management services add another 10-15% if outsourced.
Tax obligations vary but generally add another 1-2% expense ratio, especially with new regulations starting August 2025 introducing stricter reporting requirements and potential new levies on short-term rental operators.
Well-optimized properties in prime neighborhoods like Piantini, Naco, and top Zona Colonial locations can achieve net yields of 6-8% with hands-on management and strategic pricing. These properties benefit from higher occupancy rates and premium nightly rates that offset higher operating costs.
Properties requiring property management services typically see net yields in the 4-5% range, as management fees typically cost 10-20% of gross revenues depending on service level and property location.
It's something we develop in our Dominican Republic property pack.
How do short-term rental profits compare to long-term leasing?
Short-term Airbnb rentals in Santo Domingo consistently outperform long-term leasing by 30-50% in gross revenue, but require significantly more active management and carry higher operational risks.
Long-term lease properties in central Santo Domingo generate $800-$1,000 monthly for 2-bedroom apartments, delivering stable yields of 5-6%. These properties benefit from predictable cash flow, lower vacancy risk, and minimal day-to-day management requirements.
Airbnb properties in similar locations earn $1,000-$1,400 monthly when well-managed, representing a 25-40% premium over long-term rates. However, this higher income comes with increased volatility, seasonal fluctuations, and dependency on tourism trends.
Operating costs for long-term rentals are significantly lower, typically 10-15% of gross revenue compared to 25-35% for short-term rentals. Long-term tenants handle their own utilities, cleaning, and basic maintenance, reducing host involvement.
Risk profiles differ substantially between strategies. Long-term rentals offer stability but limited upside, while Airbnb provides higher returns with exposure to tourism downturns, regulatory changes, and increased competition from new hosts entering the market.
For passive investors seeking steady returns, long-term leasing provides better risk-adjusted returns. Active investors willing to optimize pricing, manage guest communications, and monitor market trends typically achieve superior absolute returns through Airbnb.
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 local regulations affect Airbnb operations?
New regulations for Airbnb and short-term rental platforms started in August 2025, marking a significant shift toward stricter oversight and increased taxation for operators in Santo Domingo.
The Ministry of Tourism and Internal Revenue implemented frameworks requiring property registration, guest safety standards compliance, and enhanced tax reporting. These changes end the previous period of regulatory leniency that allowed informal operations.
Property registration requirements mandate hosts to obtain proper licenses and maintain updated guest registries. Safety standards include fire safety equipment, proper exits, and basic security measures that may require property modifications.
Tax enforcement and reporting obligations now require hosts to declare rental income and pay applicable taxes on short-term rental profits. The government aims to level the playing field between traditional hotels and short-term rental operators.
Enforcement started lenient during the August 2025 implementation period but is expected to tighten significantly in subsequent quarters. Non-compliant operators face potential fines, listing removal, and legal consequences as the government prioritizes fair competition in the tourism sector.
Professional property management companies are adapting quickly to new requirements, while individual hosts may struggle with compliance costs and administrative burden.
How much initial investment is needed to start an Airbnb?
Initial investment for an Airbnb-ready property in Santo Domingo ranges from $160,000-$200,000, including property acquisition and complete setup costs.
Property acquisition costs $150,000-$182,000 for a typical 2-bedroom apartment in central neighborhoods. Legal fees, inspections, and closing costs add approximately $3,000-$5,000 to the purchase price.
Furnishing and equipping a 1-2 bedroom apartment requires $4,000-$10,000, depending on quality level and amenities included. This covers furniture, appliances, linens, kitchenware, electronics, and initial supply stock.
Legal compliance, insurance setup, and minor renovations typically cost $1,000-$3,000, varying by property condition and local requirements. New regulations may increase these costs for safety compliance.
Working capital of $2,000-$5,000 is recommended to cover initial operating expenses, marketing, professional photography, and first few months of utilities before positive cash flow begins.
1. Property down payment (typically 30%): $45,000-$55,0002. Closing costs and fees: $3,000-$5,0003. Furniture and equipment: $4,000-$10,0004. Renovations and compliance: $1,000-$3,0005. Working capital: $2,000-$5,0006. Professional setup (photography, listings): $500-$1,500Is Airbnb a sustainable long-term strategy in Santo Domingo?
Airbnb remains a profitable investment strategy in Santo Domingo as of September 2025, particularly for professionally managed properties in prime locations, but faces increasing regulatory pressure that may challenge smaller operators.
Sustainability depends heavily on location, with Piantini, Naco, Bella Vista, and Zona Colonial showing strong fundamentals that should weather regulatory changes better than emerging neighborhoods. These areas benefit from diverse demand sources including business travelers, tourists, and international visitors.
New regulations starting August 2025 create compliance costs and administrative burden that favor professional operators over casual hosts. Well-capitalized investors who can absorb compliance costs and adapt to changing requirements will likely see continued profitability.
Government intervention and tightening tax rules present the primary long-term risk to profitability. Small-scale operators may find diminished returns as registration requirements, safety standards, and tax obligations increase operational complexity.
For professional hosts with optimized management systems, prime locations, and compliance capabilities, Airbnb offers strong long-term potential. Passive investors or those seeking simple investment structures may find long-term leasing more suitable, especially in less prime neighborhoods.
The model works best as a long-term strategy for committed operators willing to adapt to regulatory changes, maintain high service standards, and actively manage pricing and guest experience.
It's something we develop in our Dominican Republic 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.
Santo Domingo's Airbnb market offers attractive returns for well-positioned properties, with gross yields averaging 7-8% and net yields around 5.5-6%.
Success depends on choosing the right neighborhood (Zona Colonial, Piantini, Naco), property type (studios and 1-2 bedrooms), and adapting to new regulations that favor professional operators over casual hosts.
Sources
- The Broke Backpacker - Where to Stay in Santo Domingo
- Airbtics - Annual Airbnb Revenue in Santo Domingo
- The Latinvestor - Santo Domingo Price Forecasts
- AirROI - Santo Domingo Este Report
- AirROI - Boca Chica Report
- AirROI - Santo Domingo District Report
- Airbtics - Best Airbnb Markets Dominican Republic
- Global Property Guide - Dominican Republic Rental Yields
- Travel Trade Caribbean - Dominican Republic Airbnb Regulations
- Dominican Today - Airbnb Regulation Framework