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The average rent in Cabarete varies significantly by property type and location, with studios ranging from $400-$650/month for long-term rentals and $45-$65/night for short-term stays.
Beachfront properties command premium rates, typically 15% higher than inland options, while luxury villas can reach $10,000+ monthly for the most exclusive estates. The rental market caters to diverse tenant types including tourists, digital nomads, retirees, and locals, each with distinct budget ranges and preferences.
If you want to go deeper, you can check our pack of documents related to the real estate market in the Dominican Republic, based on reliable facts and data, not opinions or rumors.
As of September 2025, Cabarete's rental market shows strong performance with studios averaging $400-$650 monthly and luxury villas commanding $4,500-$10,000+ per month.
Short-term rentals typically generate higher yields (6-10%) compared to long-term rentals, with beachfront properties maintaining consistent premium pricing year-round.
| Property Type | Long-term Monthly Rent (USD) | Short-term Nightly Rate (USD) | Average Yield |
|---|---|---|---|
| Studio | $400-$650 | $45-$65 | 8-10% |
| 1-Bedroom | $650-$1,350 | $60-$100 | 7-9% |
| 2-Bedroom Condo | $1,300-$2,000 | $150-$400 | 6-8% |
| Standard Villa | $2,200-$5,500 | $300-$500 | 5-7% |
| Luxury Villa | $8,000-$12,000 | $1,000+ | 4-6% |
What's the current average rent in Cabarete for different property types?
Studios in Cabarete rent for $400-$650 per month for long-term arrangements and $45-$65 per night for short-term vacation stays.
One-bedroom apartments range from $650-$1,350 monthly, with well-equipped beachfront units commanding $1,200-$1,500 per month while budget options start around $400 monthly. Short-term rates for one-bedrooms average $60-$100 nightly.
Villas with 2-4 bedrooms rent between $2,200-$5,500 monthly for standard properties, while luxury beachfront villas in prime locations command $4,500-$10,000+ per month. For vacation rentals, these properties earn $300-$500 nightly for standard villas and can reach $1,000+ per night during peak season.
Luxury homes and ultra-premium estates exceed $10,000 monthly and frequently command $1,000+ per night for short-term bookings, particularly during high season when demand from affluent tourists peaks.
How do rental prices vary by neighborhood within Cabarete?
Beachfront areas including Sea Horse Ranch, Ocean Dream, and Millennium command the highest rental rates due to direct ocean access and premium amenities.
Properties in these prime beachfront locations typically carry a 15% premium over comparable inland properties, reflecting the desirability of oceanfront living and proximity to water sports activities.
Central Cabarete offers mid-tier pricing with mostly studios and apartments, providing convenient access to restaurants, shops, and nightlife while maintaining reasonable rental costs for budget-conscious tenants.
Encuentro and Perla Marina areas attract surfers and digital nomads with more affordable options, featuring studios and apartments starting from $450 monthly and entry-level villas beginning around $2,200 monthly.
What's the price per square meter in Cabarete's most popular areas?
| Property Type | Central/Standard Areas (USD/m²) | Beachfront/Luxury Areas (USD/m²) |
|---|---|---|
| Studio | $1,200-$2,000 | $2,100-$2,500 |
| 2-3 Bedroom Apartment | $1,200-$2,150 | $2,150-$2,500 |
| Villa | $1,800-$2,300 | $2,300-$2,500 |
| Luxury Home | $2,100-$2,500 | $2,300-$2,500 |
What's the total rental cost including all taxes and fees?
The Dominican Republic government applies an 18% tax on short-term and holiday rentals, which property managers typically include in the quoted price to guests.
Property management fees range from 10-20% of rental income, plus additional booking handling fees of $20-$50 per reservation. Regular cleaning services cost $165-$250 monthly for condos, while pool and yard maintenance for villas runs $80-$130 monthly.
Routine maintenance should be budgeted at $100-$250 monthly, while utilities including electricity and water typically cost $50-$100 monthly for standard properties. Luxury properties may incur higher utility costs due to increased usage and larger spaces.
Property insurance ranges from $300-$1,000 annually depending on property value and coverage level. For a typical 2-bedroom condo renting at $1,200 monthly, total expenses including 15% management fees, taxes, cleaning, maintenance, and utilities would reach approximately $1,872 monthly.
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What would monthly mortgage costs look like for an investor?
Foreign investors in the Dominican Republic must provide a minimum 30% down payment, with financing available up to 65% loan-to-value ratio for terms up to 30 years.
Interest rates typically range from 8-12% depending on the lender, borrower profile, and specific terms negotiated. For a $200,000 property purchase, investors would need a $60,000 down payment with a $140,000 mortgage.
Monthly principal and interest payments on a $140,000 mortgage at 10% APR over 25 years would total approximately $1,270. When adding property management, taxes, maintenance, and utilities, total monthly outflow reaches $1,870-$2,200.
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Which property types are most profitable for short-term vs long-term rentals?
Studios and one-bedroom beachfront properties generate the highest returns for short-term rentals, particularly those located near tourism hotspots and water sports facilities.
Two to three-bedroom condos near the beach also perform exceptionally well for vacation rentals, attracting families and groups willing to pay premium rates for convenience and location.
Luxury villas command premium nightly rates during high season but carry higher carrying costs including maintenance, utilities, and management fees, which can impact overall profitability.
Long-term rentals provide steadier income with lower vacancy risk, making them popular with digital nomads, retirees, and seasonal expats who prefer stability over peak seasonal rates.
Can you provide specific rental rate examples for comparison?
| Property Type/Size | Monthly Rate (USD) | Nightly Rate (USD) |
|---|---|---|
| Studio (35-50m², pool/garden) | $400-$650 | $45-$65 |
| 1-bed apartment (45-65m², central) | $650-$1,350 | $60-$100 |
| 2-bed beachfront condo (85m²+) | $1,300-$2,000 | $150-$400 |
| Standard villa (3-bed, 180m²) | $2,200-$5,500 | $300-$500 |
| Luxury villa/estate (300m²+) | $8,000-$12,000 | $1,000+ |
What types of tenants rent in Cabarete and what are their budgets?
Tourists represent the highest-paying segment, spending $50-$350 per night depending on group size and accommodation type, with strong preference for beachfront condos and luxury villas.
Digital nomads typically seek 1-2 bedroom properties with reliable WiFi and proximity to town amenities, budgeting $600-$1,500 monthly for medium-term stays of 3-12 months.
Retirees and expats prefer comfortable condos and houses for longer-term arrangements, typically budgeting $700-$2,500 monthly depending on desired amenities and location preferences.
Local residents generally rent studios and modest one-bedroom apartments with lower budgets ranging from $400-$700 monthly, focusing on functional rather than luxury accommodations.
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's the current vacancy rate in Cabarete?
Short-term rentals in Cabarete experience vacancy rates of 10-15%, with significant seasonal fluctuation based on tourist demand and weather patterns.
Long-term rentals maintain more stable occupancy with vacancy rates of 5-8%, reflecting consistent demand from digital nomads, retirees, and expats seeking extended stays.
Beachfront and luxury properties see higher occupancy during peak season (December through March) but may experience lower demand during off-season months, particularly September through November.
Properties with strong management and marketing typically achieve occupancy rates at the higher end of these ranges, while poorly managed or overpriced units may struggle with extended vacancy periods.
What are the rental yields by property type and recent trends?
Condos and apartments currently generate average net yields of 6-9%, with well-located studios achieving yields up to 10% when operated as short-term rentals.
Villas and luxury properties typically produce yields of 4-7% due to higher acquisition costs, though premium properties in exceptional locations can exceed these averages during strong seasons.
Rental yields have increased 1-2% over the past year due to sustained tourism recovery and growing international interest in Cabarete as a lifestyle destination.
Over the past five years, property prices have appreciated over 115% while rental rates have grown more moderately, resulting in slight yield compression but strong overall returns when including capital appreciation.
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What are the rental and yield forecasts for Cabarete?
One-year forecasts suggest continued steady demand with rental yields remaining in the 6-9% range for most property types, supported by growing tourism and remote work trends.
Five-year projections indicate modest price growth with stable rental rates, assuming no major macroeconomic disruptions or changes to Dominican Republic tourism policies.
Ten-year outlook remains positive given Cabarete's established position as a premier Caribbean destination for water sports, digital nomads, and lifestyle buyers seeking year-round tropical living.
Experts anticipate that infrastructure improvements and increased international airport connectivity will support long-term rental demand, though yield compression may occur if property prices rise faster than rental rates.
How do Cabarete's rentals compare to other coastal cities?
Sosua, located nearby, offers slightly lower purchase prices at $1,000-$2,000 per square meter with similar rental yields of 5-8%, making it a more budget-friendly alternative.
Las Terrenas and Punta Cana command higher property prices due to larger luxury developments and resort infrastructure, but typically generate lower yields due to increased competition and higher operational costs.
Cabarete consistently ranks among the Caribbean's best destinations for short-term rental yields, benefiting from its reputation as a world-class windsurfing and kitesurfing destination combined with strong expat community appeal.
The combination of reasonable property prices, strong tourism demand, and growing digital nomad interest positions Cabarete favorably compared to other regional coastal markets for both lifestyle buyers and investment-focused purchasers.
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.
Cabarete's rental market offers compelling opportunities for both lifestyle buyers and investors, with property types ranging from affordable studios to luxury beachfront estates.
The combination of strong tourism demand, growing digital nomad interest, and reasonable property prices positions Cabarete as one of the Caribbean's most attractive rental investment destinations as of September 2025.
It's something we develop in our Dominican Republic property pack.