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Tegucigalpa's short-term rental market offers compelling opportunities for property investors, with top-performing properties achieving gross rental yields exceeding 16%. The capital city's growing tourism sector and business travel demand create a stable foundation for Airbnb investments, though success heavily depends on location, property type, and management quality.
As of September 2025, the Tegucigalpa Airbnb market shows clear performance tiers, with the best properties commanding $83+ per night and achieving 72% occupancy rates, while median properties earn around $48 per night with 31% occupancy. Understanding these dynamics is crucial for investors considering whether short-term rentals can generate better returns than traditional long-term leasing in Honduras's capital.
If you want to go deeper, you can check our pack of documents related to the real estate market in Honduras, based on reliable facts and data, not opinions or rumors.
Tegucigalpa's Airbnb market offers gross rental yields ranging from 7.3% for median properties to 16.6% for top-tier listings, though net yields drop to 4.4% after operating costs.
The most profitable areas include Zona Rosa, Los Proceres, and Las Lomas, with 1-2 bedroom apartments dominating guest preferences and comprising 82.8% of active listings.
| Performance Tier | Monthly Revenue | Occupancy Rate | Nightly Rate | Gross Yield |
|---|---|---|---|---|
| Top 10% | $1,316+ | 72% | $83+ | 16.6% |
| Top 25% | $843 | 51% | $62 | 12.5% |
| Median | $455 | 31% | $48 | 7.3% |
| Bottom 25% | $213 | 16% | $37 | 3.4% |
| Operating Costs | 30-45% of gross | - | - | - |
| Net Yield (Median) | $273 | - | - | 4.4% |
Which neighborhoods in Tegucigalpa offer the best returns for short-term rentals?
El Centro leads Tegucigalpa's short-term rental market due to its appeal to cultural tourists and business travelers seeking proximity to historical attractions.
Zona Rosa ranks as the most popular area for Airbnb guests, driven by its concentration of nightlife, restaurants, and boutique hotels that attract both local and international visitors. Properties in this neighborhood consistently achieve above-average occupancy rates throughout the year.
Los Proceres offers excellent potential for family-oriented short-term rentals, combining quiet residential appeal with close proximity to major attractions. This area particularly excels during peak tourist seasons when families seek longer stays in safe, comfortable environments.
Las Lomas attracts the highest-paying guests due to its modern infrastructure and luxury appeal, making it popular with expats and affluent travelers willing to pay premium rates for quality accommodations.
Palmira provides steady returns through its proximity to the university, creating consistent demand from students, academics, and visiting professionals throughout the academic year.
What property types generate the highest Airbnb revenues in Tegucigalpa?
Apartments and condominiums dominate Tegucigalpa's short-term rental market, representing 82.8% of all active listings as of September 2025.
Entire home and apartment listings perform significantly better than shared accommodations, accounting for 84.7% of successful properties. Guests consistently prefer privacy and complete control over their accommodation space, driving higher nightly rates and longer booking durations.
Studios and 1-2 bedroom units capture the largest market segment, comprising 77.2% of total supply and generating the most consistent bookings. These property types perfectly match the preferences of couples and solo travelers who form the majority of Tegucigalpa's short-term rental guests.
Houses represent a smaller but potentially lucrative niche market, particularly for larger groups or extended family stays. However, the limited demand means houses require more strategic pricing and marketing to achieve optimal occupancy rates.
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How much can hosts charge per night, and how do rates change seasonally?
Nightly rates in Tegucigalpa vary significantly based on property quality and location, with clear performance tiers emerging across the market.
| Property Tier | Nightly Rate | Peak Season Rate | Low Season Rate |
|---|---|---|---|
| Best-in-class (Top 10%) | $83+ | $95-100 | $75-80 |
| Strong performing (Top 25%) | $62 | $70-75 | $55-60 |
| Market median | $48 | $54-60 | $45-50 |
| Entry-level | $37 | $42-45 | $35-38 |
| Peak months | December, August, March | $54-60 average | 42% occupancy |
| Low season | January, February, November | $52-53 average | 30% occupancy |
What occupancy rates should investors realistically expect throughout the year?
The average occupancy rate across Tegucigalpa's short-term rental market stands at 31% as of September 2025.
Top-performing properties achieve occupancy rates of 72% or higher, while strong-performing listings maintain 51% occupancy. These figures represent well-managed properties in optimal locations with competitive pricing strategies and excellent guest services.
Seasonal fluctuations significantly impact occupancy rates, with December representing the peak month for bookings due to holiday travel and year-end business activities. July typically shows the lowest occupancy rates as both business and leisure travel decrease during this period.
Market median properties experience 31% occupancy, while entry-level listings struggle with just 16% occupancy rates. The wide gap between performance tiers emphasizes the importance of property selection, location, and management quality in achieving successful short-term rental outcomes.
Properties in prime neighborhoods like Zona Rosa and Los Proceres consistently outperform the market average, often achieving 40-50% occupancy rates even at the median performance level.
How much monthly revenue can property owners generate from Airbnb?
Monthly revenue potential in Tegucigalpa's Airbnb market varies dramatically based on property performance tier and management effectiveness.
Top-tier properties generate $1,316 or more per month by combining high occupancy rates (72%) with premium nightly rates ($83+). These properties typically feature superior locations, modern amenities, and professional management services that justify their premium pricing.
Strong-performing properties in the top 25% achieve approximately $843 monthly revenue through 51% occupancy and $62 nightly rates. This performance level represents achievable targets for well-positioned properties with good management practices.
Median properties earn around $455 per month, calculated from 31% occupancy and $48 nightly rates. This figure represents the realistic expectation for average properties in decent locations with standard amenities and basic management approaches.
Bottom-tier properties struggle with just $213 monthly revenue due to low occupancy (16%) and reduced nightly rates ($37). These properties often suffer from poor locations, inadequate amenities, or ineffective marketing and management strategies.
Revenue calculations assume 30-night months, with the formula: Occupancy Rate Ă— Nightly Rate Ă— 30 nights = Monthly Revenue.
What are the main operating expenses for Airbnb properties in Tegucigalpa?
Cleaning costs represent the largest variable expense for Tegucigalpa Airbnb properties, averaging $75 per night for 1-2 night stays.
Longer guest stays reduce per-night cleaning costs significantly, with turnover cleaning ranging from $50-100 per guest departure. Properties with frequent short stays face higher cleaning expenses as a percentage of revenue compared to those attracting longer-term guests.
Monthly utilities including electricity, water, and internet typically cost $80-140 for standard apartments. Air conditioning usage during hot months can push electricity costs toward the higher end of this range, particularly for properties targeting international guests expecting consistent climate control.
Airbnb platform fees consume approximately 3% of total booking value for hosts, representing a fixed cost that scales with revenue. Additional platform-related expenses may include photography services, listing optimization tools, and promotional campaigns to improve visibility.
Other operating costs include regular supplies replacement, minor maintenance and repairs, property insurance, and potential security deposits or damage coverage. These miscellaneous expenses typically add 5-10% to total operating costs depending on property type and guest turnover frequency.
How much do property management services cost for non-local owners?
Professional property management services in Tegucigalpa charge between 15-35% of monthly gross revenue for comprehensive short-term rental management.
Full-service management typically costs 20-35% of gross revenue and includes guest communication, check-in/check-out coordination, cleaning oversight, maintenance handling, pricing optimization, and listing management across multiple platforms.
Larger homes and luxury apartments often face higher management fees due to increased complexity, more demanding guests, and higher service expectations. These properties may require specialized cleaning services, concierge-style guest support, and more frequent maintenance attention.
Long-term management contracts often provide fee discounts, with annual agreements potentially reducing costs by 2-5 percentage points compared to month-to-month arrangements. Some management companies offer tiered pricing based on property performance, charging lower percentages for higher-revenue properties.
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What do properties suitable for Airbnb cost to purchase in Tegucigalpa?
Modern 1-2 bedroom apartments suitable for short-term rentals in Tegucigalpa range from $55,000 to $110,000 depending on location, amenities, and size.
Properties in prime areas like Zona Rosa and Las Lomas command premium prices, often approaching the upper end of this range due to superior location advantages and modern infrastructure. These areas offer the best potential for achieving top-tier performance in the short-term rental market.
Mid-range neighborhoods like Los Proceres and El Centro offer good value opportunities, with quality apartments available in the $65,000-85,000 range. These areas provide solid rental potential while requiring lower initial investment compared to luxury districts.
Houses suitable for Airbnb typically start around $140,000 and can exceed $200,000 for properties in desirable areas with multiple bedrooms and modern amenities. While houses offer higher revenue potential, they also require significantly larger initial investments and may face longer periods between bookings.
Property prices in Tegucigalpa remain relatively stable compared to other Central American capitals, making it an attractive market for investors seeking affordable entry points into short-term rental markets.
What gross rental yields can investors expect before considering expenses?
Gross rental yields in Tegucigalpa's short-term rental market range from 7.3% for median properties to 16.6% for top-performing listings.
A typical median property purchased for $75,000 and generating $455 monthly revenue produces annual income of $5,460, resulting in a 7.3% gross rental yield. This calculation assumes consistent performance throughout the year without accounting for seasonal variations or vacancy periods.
Top-tier properties costing approximately $95,000 and generating $1,316 monthly revenue achieve gross yields of 16.6% annually. These exceptional returns reflect the significant performance gap between well-managed, optimally located properties and average market performers.
Strong-performing properties in the top 25% typically achieve gross yields around 12-13%, representing a realistic target for investors willing to invest in better locations and implement professional management practices.
These gross yield calculations provide the foundation for investment analysis but require adjustment for operating expenses, vacancy periods, and seasonal fluctuations to determine actual investment returns.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Honduras 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 net yields and cash flow can investors expect after all expenses?
Net rental yields in Tegucigalpa drop significantly after accounting for operating costs, with median properties achieving approximately 4.4% net yields.
Operating expenses typically consume 30-45% of gross revenue, including cleaning costs, utilities, property management fees, platform fees, maintenance, and supplies. A median property generating $5,460 annual gross revenue faces approximately $2,183 in operating expenses.
The resulting net cash flow for a median property totals approximately $3,277 annually, or $273 monthly. This represents a 4.4% net yield on a $75,000 property investment, providing positive cash flow but modest returns compared to gross yield expectations.
Top-performing properties maintain better net yield margins due to economies of scale and higher revenue generation. A property generating $15,792 annual gross revenue may face $6,317 in operating costs, resulting in $9,475 net cash flow and a 10% net yield on a $95,000 investment.
Investors should budget conservatively for operating expenses, as actual costs often exceed initial estimates, particularly for properties requiring frequent cleaning, maintenance, or professional management services.
How do Airbnb returns compare to traditional long-term rental income?
Traditional long-term rentals in Tegucigalpa typically generate 5-8% annual yields with greater stability and lower operating costs.
Long-term rentals offer more predictable cash flow with fewer vacancy periods, reduced cleaning and maintenance costs, and minimal day-to-day management requirements. Landlords benefit from stable monthly income without the seasonal fluctuations characteristic of short-term rental markets.
Short-term rentals can outperform long-term leasing for properties achieving best-in-class performance (top 10-25%), but median Airbnb properties often produce similar or lower net returns when accounting for higher operating costs and management complexity.
The labor intensity of short-term rental management represents a significant consideration, as successful Airbnb operations require constant guest communication, cleaning coordination, maintenance oversight, and pricing optimization that long-term rentals do not demand.
It's something we develop in our Honduras property pack.
What local regulations and permits affect Airbnb profitability in Tegucigalpa?
Tegucigalpa currently maintains minimal regulation for short-term rentals, with no mandatory Airbnb license required as of September 2025.
Property owners should verify compliance with condominium or homeowner association rules, as some residential buildings restrict short-term rental activities or impose additional fees for commercial use of residential units.
Safety requirements, noise restrictions, and guest limits may apply depending on property location and local municipality regulations. These requirements can affect operational costs through necessary safety equipment purchases or guest capacity limitations.
Tax implications for short-term rental income should be considered, as rental earnings may be subject to different tax treatments compared to long-term leasing arrangements. Professional tax advice is recommended for accurate compliance and planning.
Regulatory environments can change rapidly in developing markets, making it essential for investors to monitor local government developments that could introduce new permit requirements, taxation, or operational restrictions affecting short-term rental profitability.
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.
Tegucigalpa's Airbnb market offers compelling opportunities for investors willing to target prime locations and implement professional management strategies.
While gross yields can reach 16.6% for top-performing properties, net returns after expenses typically range from 4.4% to 10%, making location and management quality critical success factors.
Sources
- AirROI 2025 Tegucigalpa Market Analysis
- Airbnb cleaning cost guide
- Truvi Airbnb property management fee guide
- Honduras Real Estate Market statistics
- GlobalPropertyGuide short-term rental costs guide
- Airbnb Tegucigalpa listings
- Honduras real estate investment trends
- Airbnb vs traditional rental comparison