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Rental prices in the Dominican Republic vary significantly from $375 for basic apartments to over $6,000 for luxury beachfront villas.
The Dominican Republic rental market offers attractive opportunities for investors, with gross rental yields averaging 7.12% nationwide as of September 2025, making it one of the most profitable Caribbean destinations for real estate investment.
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.
The Dominican Republic rental market shows strong performance with average yields of 7.12%, significantly higher than most Caribbean competitors.
Santo Domingo leads with the highest rental yields at 7.9%, while tourist hotspots like Punta Cana and Las Terrenas command premium prices for luxury properties.
| Location | 1BR Apartment (USD/month) | 3BR Apartment (USD/month) | Rental Yield |
|---|---|---|---|
| Santo Domingo Center | $700 | $1,540 | 7.9% |
| Santo Domingo Outside | $375 | $850 | 7.5% |
| Punta Cana | $800-900 | $1,200-2,000 | 6.98% |
| Las Terrenas | $900-1,200 | $2,200-3,500 | 7.2% |
| Puerto Plata | $600-800 | $1,000-1,500 | 7.3% |
What's the current average rent across different cities and regions in the Dominican Republic?
Santo Domingo leads the Dominican Republic rental market with the highest prices and strongest demand.
In Santo Domingo's city center, one-bedroom apartments average RD$40,614 ($700) monthly, while three-bedroom units reach RD$89,349 ($1,540). Outside the center, prices drop significantly to RD$21,795 ($375) for one-bedroom and RD$49,492 ($850) for three-bedroom apartments.
Punta Cana, the country's premier tourist destination, commands premium rates with two-bedroom apartments renting for $800-$1,200 monthly for long-term tenants. Luxury villas in prime beachfront locations reach $2,000-$10,000 monthly, depending on size and amenities.
Las Terrenas offers mid-range pricing with one to two-bedroom condos averaging $900-$1,500 monthly for long-term rentals. Three to four-bedroom villas range from $2,200-$3,500, while luxury beachfront properties with four to five bedrooms command $3,500-$6,000 during high season.
Puerto Plata presents more affordable options compared to other tourist areas, with apartments averaging approximately $1,200 per square meter and villas ranging from $800-$2,500 monthly.
How does rent vary depending on property type, like apartments, condos, and single-family homes?
Property type significantly impacts rental prices across the Dominican Republic, with luxury villas commanding the highest premiums.
One-bedroom apartments in city centers average $437 monthly, representing the most affordable option for single renters. Two-bedroom apartments in tourist areas like Punta Cana and Las Terrenas range from $800-$1,200, reflecting the premium for desirable locations.
Three-bedroom apartments show substantial price variation, averaging $1,540 in Santo Domingo's center but dropping to $850 outside central areas. This demonstrates how location within the same city dramatically affects pricing.
Condos in resort areas command higher prices than traditional apartments, with one to two-bedroom units in Las Terrenas averaging $900-$1,500 monthly for long-term rentals. These properties typically offer amenities like pools, security, and maintenance services.
Luxury villas represent the premium segment, ranging from $2,000-$10,000 monthly in tourist hotspots. These properties often feature multiple bedrooms, private pools, and beachfront or ocean-view locations, justifying their significantly higher rental rates.
What's the breakdown of rental prices based on property size and surface area?
| Location | Price per m² (USD) | Property Type |
|---|---|---|
| National Average | $2,000 | Apartments |
| Punta Cana | $1,980 | Apartments |
| Santo Domingo | $1,475 | Apartments |
| Las Terrenas | $1,825 | Apartments |
| National Average | $1,569 | Houses |
What are the typical total monthly costs for a renter when you include fees, utilities, and maintenance?
Total monthly costs for renters extend significantly beyond base rent, particularly for apartments and luxury properties.
Utility costs including electricity and water average $70-$150 monthly for standard apartments. These costs increase substantially for larger villas and properties with air conditioning, pools, or other energy-intensive amenities.
HOA fees and maintenance costs for condominiums and gated communities range from $50-$200 monthly. These fees typically cover security, common area maintenance, pool upkeep, and landscaping services.
Internet and cable services add approximately $25-$50 monthly to tenant expenses. High-speed internet is increasingly important for remote workers and expats choosing the Dominican Republic as their base.
For basic apartments, total monthly costs including rent, utilities, and fees typically range from $600-$1,000. Luxury villas with comprehensive amenities can reach $2,500-$10,000 monthly when including all additional costs and services.
How do property taxes and other government charges affect the net rental income for owners?
Property taxes in the Dominican Republic only apply to high-value properties, making them less burdensome than many other countries.
Properties valued above RD$7.7 million (approximately $130,000) face an annual property tax of 1% on the excess value. This means most mid-range rental properties avoid property taxes entirely, improving net yields for investors.
Rental income faces a 27% tax rate on net income after allowable deductions. Owners can deduct legitimate expenses including maintenance costs, mortgage interest, and property depreciation, reducing the effective tax burden.
Property transactions incur a 3% title transfer tax when buying or selling. Short-term rental operations may face additional business tax obligations depending on the scale and structure of operations.
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What does a mortgage look like for a property intended for rental, and how does that impact profitability?
Mortgage financing for rental properties in the Dominican Republic requires higher down payments and interest rates compared to primary residences.
Foreign investors typically face mortgage rates between 6-12%, depending on their banking relationship and financial profile. Dominican banks generally require stronger financial documentation from international buyers.
Minimum down payments range from 20-30% for investment properties, with some lenders requiring up to 35% for foreign nationals. Amortization periods typically span 15-20 years, shorter than many international markets.
Monthly mortgage payments for average apartments range from $600-$1,500, depending on property value and loan terms. Luxury properties and villas can generate mortgage payments of $2,000-$5,000 monthly, requiring careful cash flow analysis.
Profitability improves when rental yields exceed mortgage rates, which is achievable given the Dominican Republic's 7%+ average yields. However, investors must factor in transaction costs, vacancy periods, and maintenance expenses when calculating true returns.
What are the differences in rental income potential between short-term rentals like Airbnb and long-term tenants?
Short-term rentals significantly outperform long-term rentals in high-demand tourist areas, but require substantially more management effort.
Airbnb and similar platforms generate nightly rates from $50-$900 depending on location, property type, and season. Prime beachfront properties in Punta Cana or Las Terrenas can command $300-$900 nightly during peak tourist seasons.
Occupancy rates vary dramatically by season, reaching 75-90% during high season but dropping to 40-55% in low season. This seasonality requires careful financial planning to maintain profitability year-round.
Monthly revenue for successful short-term rentals ranges from $1,000-$6,000 for high-demand properties and luxury units. However, operating costs including cleaning, management fees, and platform commissions typically consume 20-30% of gross revenue.
Long-term rentals provide consistent monthly income ranging from $800-$3,500 for quality properties, with significantly lower management costs and more predictable cash flow. Many investors prefer this stability despite potentially lower gross returns.
Can you give concrete examples of rental prices for different property types in popular areas?
Real-world rental examples demonstrate the significant price variation across the Dominican Republic's diverse markets.
In Santo Domingo's upscale Evaristo Morales neighborhood, modern one-bedroom apartments command $1,200 monthly, reflecting the premium for quality construction and central location.
Bávaro and Punta Cana two-bedroom townhouses typically rent for $800-$1,200 monthly to long-term tenants, offering good value for families and professionals working in the tourism sector.
Las Terrenas modern three-bedroom condominiums near Popy Beach average $2,200 monthly for long-term rentals, capitalizing on the area's growing expat community and stunning coastal location.
Luxury villas in Punta Cana's exclusive developments command $6,000+ monthly or $990 nightly for short-term rentals, targeting high-end tourists and wealthy international renters seeking premium accommodations.
Who are the main renter profiles—locals, expats, students, or tourists—and what are their typical budgets?
The Dominican Republic rental market serves distinct demographic segments with varying budget capacities and location preferences.
Local Dominican renters typically seek affordable housing in suburban areas or less touristy zones, with budgets ranging from $300-$700 monthly for one-bedroom apartments. These renters prioritize value and proximity to employment centers over luxury amenities.
Expats and retirees represent the most profitable long-term rental segment, seeking central city locations or coastal areas with budgets of $700-$2,000 monthly for apartments and condominiums. This group values modern amenities, reliable internet, and English-speaking property management.
Tourists booking through Airbnb and similar platforms pay $50-$900 nightly, with spending increasing during peak seasons and for luxury accommodations. This segment drives the highest rental rates but requires intensive property management.
Students typically share accommodations, contributing $200-$500 monthly per person toward housing costs. While this segment offers stable occupancy, rental rates remain at the lower end of the market spectrum.
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 are the current vacancy rates in different regions, and how do they affect expected returns?
Vacancy rates in the Dominican Republic vary significantly between high-demand tourist areas and secondary markets, directly impacting investor returns.
Premium locations including Santo Domingo, Punta Cana, and Las Terrenas maintain high-season occupancy rates of 75-90% for well-managed properties. These areas benefit from consistent tourism demand and growing expat populations.
During low and mid-season periods, occupancy rates decline to 40-70% even in prime locations, requiring investors to budget for seasonal income fluctuations. Properties lacking proper marketing or competitive pricing face higher vacancy rates regardless of location.
Rural and secondary markets experience higher vacancy rates throughout the year, as limited employment opportunities and tourism infrastructure reduce rental demand. Investors in these areas must accept lower yields in exchange for cheaper acquisition costs.
Short-term rental properties face more dramatic vacancy rate swings, with peak season demand potentially offsetting months of lower occupancy. Long-term rental properties in desirable areas typically maintain occupancy rates above 85% annually when properly managed and priced competitively.
What are the average rental yields today, how do they compare to 1 year and 5 years ago, and what's the forecast for 1, 5, and 10 years?
The Dominican Republic rental market demonstrates strong and improving yields compared to regional competitors.
As of September 2025, average gross rental yields reach 7.12% nationwide, representing an increase from 6.74% in mid-2024. Santo Domingo leads with 7.9% yields, while Punta Cana apartments generate 6.98% returns.
Historical performance from 2019-2024 shows yields consistently ranging between 6-7.5%, with gradual improvement as tourism infrastructure develops and international investment increases. The market has demonstrated resilience through global economic challenges.
One to two-year forecasts predict yields will remain in the 7-8% range, supported by continued tourism growth and expanding expat communities. Market fundamentals including affordable property prices and strong rental demand support these projections.
Five to ten-year outlooks anticipate yields moderating slightly as property prices appreciate and supply increases in prime markets. However, continued economic development and tourism expansion should maintain the Dominican Republic's competitive position among Caribbean investment destinations.
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How do rental prices and yields in the Dominican Republic compare with similar Caribbean or Latin American markets?
| Country/Region | Avg. Price (US$/m²) | Rental Yield | 5-Year Price Trend |
|---|---|---|---|
| Dominican Republic | $1,569–2,328 | 6–10% | +42% |
| Bahamas | $3,000–5,000+ | 4–7% | +20–30% |
| Costa Rica | $2,500–3,500 | 5–8% | +50–60% |
| Jamaica | $2,000–3,000 | 4–7% | +15–20% |
| Panama | $2,000–3,000 | 5–7% | +15–25% |
| Colombia (MedellĂn) | $1,500–2,500 | 7–8% | +20–30% |
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.
The Dominican Republic rental market offers compelling opportunities for investors seeking high yields in a stable Caribbean environment.
With average yields of 7.12% and property prices significantly below regional competitors, the market presents attractive risk-adjusted returns for both local and international investors.
It's something we develop in our Dominican Republic property pack.
Sources
- Morillo Suriel Abogados - Cost of Living Guide 2025
- Wise - Dominican Republic Cost of Living
- Everything Punta Cana - Prices in Dominican Republic
- Real Estate Las Terrenas - Rental Potential Evaluation
- TheLatinvestor - Dominican Price Forecasts
- Buy in Casa Linda - Cost of Living Breakdown 2025
- Everything Punta Cana - Rent Costs
- AirROI - Dominican Republic Report
- Realtor.com - Dominican Republic Rentals
- Global Property Guide - Dominican Republic Price History