Summary
Only for sitting tenants. Leases renewing in September 2026 went up 4.55% (INE coefficient), just under inflation (4.68%), while new asking rents in Montevideo were 3.91% lower in August 2026 than a year earlier. In real terms, rents are flat, and slightly down for new tenants.
New listings ask UYU 23,329 for a studio, UYU 29,368 for a 1-bedroom and UYU 40,065 (about USD 1,000) for a 2-bedroom (Gallito, August 2026). The average signed lease in Uruguay is lower, at UYU 22,413, because it mixes old contracts and cheaper towns.
The barrio matters more than the city average: the median 1-bedroom asks UYU 24,900 in Centro, UYU 29,000 in Pocitos and UYU 38,250 in Carrasco (October 2026).
For the next 12 months, we expect renewals to keep adding about 4% to 5% a year, in line with inflation, and new asking rents to stay between flat and +3% (our estimate).
The most expensive area is Carrasco, where the average apartment asks UYU 78,485 a month, against UYU 16,457 in Maroñas at the other end. Cordón, Parque Rodó and Tres Cruces rent fastest.
Most tenants are local workers and couples (about 45% of demand, our estimate). Only 10% to 20% want a furnished flat, but furniture can add UYU 4,000 to UYU 10,000 a month in Pocitos, Punta Carretas, Ciudad Vieja or Parque Rodó.
Demand is steady, not hot: we estimate vacancy at 4% to 6% for normal flats, a well-priced flat lets in 25 to 40 days, and February to April are the best months to find a tenant.
At renewal, a UYU 30,000 rent goes up UYU 1,365 with the September 2026 coefficient. Leases signed under the no-guarantee regime of Law 19.889 follow whatever currency and index the contract says.
Airbnb rarely beats a long lease here: AirROI's average Montevideo listing grossed UYU 312,000 over the 12 months to September 2026, less than 12 months of a 1-bedroom at UYU 29,368, and listings grew 32% in a year.
Set aside 20% to 30% of the rent for vacancy, repairs and charges. Building fees (gastos comunes) run from UYU 3,000 to UYU 25,000 a month for a 2-bedroom, and the owner pays them when the flat is empty.
Rental income is taxed at 12% of the taxable amount, with a 10.5% advance on gross rent. A 6.1% gross yield (median of Montevideo barrios, INGAR) ends up at about 4% net.
Our advice: price a new lease from today's listings, not from last year's rent plus the coefficient, keep the building fees low, and only buy to let if the flat shows at least 6% gross.
What do studios, 1- and 2-bedrooms rent for in Montevideo?
New listings in Montevideo ask UYU 23,329 for a studio, UYU 29,368 for a 1-bedroom, UYU 40,065 for a 2-bedroom and UYU 70,828 for a 3-bedroom on average. Across all listings, the average is UYU 36,550 (Inmuebles Data–Gallito, August 2026, asking rents without building fees).
The official average signed lease is lower, at UYU 22,413 (about USD 560) for the whole of Uruguay (INE, August 2026, 150,909 contracts of all sizes), because it includes old leases and cheaper towns.
| Montevideo barrio | 1-bedroom (median asking) | 2-bedroom (median asking) |
|---|---|---|
| Centro | UYU 24,900 (about USD 620) | UYU 30,000 (about USD 750) |
| Buceo | UYU 25,000 (about USD 625) | UYU 33,700 (about USD 840) |
| Ciudad Vieja | UYU 26,000 (about USD 650) | UYU 30,000 (about USD 750) |
| Cordón | UYU 27,000 (about USD 675) | UYU 33,900 (about USD 845) |
| Parque Rodó | UYU 28,000 (about USD 700) | UYU 36,550 (about USD 910) |
| Pocitos | UYU 29,000 (about USD 725) | UYU 40,250 (about USD 1,000) |
| Malvín | UYU 29,000 (about USD 725) | UYU 40,000 (about USD 1,000) |
| Punta Carretas | UYU 34,500 (about USD 860) | UYU 42,000 (about USD 1,050) |
| Carrasco | UYU 38,250 (about USD 955) | UYU 50,000 (about USD 1,250) |
What's the average monthly rent for a studio?
A studio asks UYU 23,329 (about USD 580 or EUR 520) on average (Gallito, August 2026).
Most studios list for UYU 19,000 to UYU 30,000 a month (about USD 475 to USD 750, or EUR 420 to EUR 665) (our estimate).
The cheap end is Centro, Cordón, Aguada and Tres Cruces. The top end is new buildings near the Rambla in Pocitos, Punta Carretas, Malvín and Puerto Buceo.
What's the average monthly rent for a 1-bedroom?
A 1-bedroom asks UYU 29,368 (about USD 730 or EUR 655) on average (Gallito, August 2026).
Most 1-bedrooms list for UYU 24,000 to UYU 35,000 (about USD 600 to USD 875, or EUR 535 to EUR 780). The median goes from UYU 24,900 in Centro and UYU 27,000 in Cordón to UYU 34,500 in Punta Carretas and UYU 38,250 in Carrasco (Cambio Uruguay, October 2026).
The cheapest 1-bedrooms are in Centro, Aguada, La Blanqueada and parts of Cordón; Pocitos, Punta Carretas, Puerto Buceo, Malvín and Carrasco sit at the top.
What's the average monthly rent for a 2-bedroom?
A 2-bedroom asks UYU 40,065 (about USD 1,000 or EUR 890) on average (Gallito, August 2026).
Most 2-bedrooms list for UYU 30,000 to UYU 50,000 (about USD 750 to USD 1,250, or EUR 665 to EUR 1,110). The median is UYU 30,000 in Centro and Ciudad Vieja, about UYU 40,000 in Pocitos and Malvín, and UYU 50,000 in Carrasco (Cambio Uruguay, October 2026).
Big flats with a garage and sea views in Punta Carretas, Puerto Buceo, Punta Gorda or Carrasco go well above that.
What's the average rent per square meter?
A normal flat asks about UYU 600 to UYU 670 per m² a month, or about USD 15 to USD 17 and EUR 13 to EUR 15 per m² (our estimate).
We got there by dividing Gallito's August 2026 averages by usual sizes: UYU 23,329 for a 35 m² studio, UYU 29,368 for a 45 m² 1-bedroom and UYU 40,065 for a 65 m² 2-bedroom. Across barrios, most flats sit between UYU 500 and UYU 1,000 per m² (about USD 12 to USD 25).
Small modern units, Rambla access, a garage, sea views and low building fees push rent per m² above the average. Unlike Punta del Este, demand here comes from work and study, so it barely moves with the seasons.
How much have rents changed over the past year?
It depends on whether you look at existing leases or new ones.
Existing leases go up once a year by the INE adjustment coefficient: 4.27% for leases renewing in August 2026 and 4.55% for September. Inflation was 4.68% over the 12 months to September 2026, so landlords are only keeping up with prices.
New listings tell a softer story: average asking rents were 3.91% lower in August 2026 than in August 2025, even if they rose 0.7% from July (Inmuebles Data–Gallito). The number of active contracts in Uruguay also slipped 1.33% between July and August (INE).
So rents still rise in pesos for sitting tenants, but not in real terms, and a new tenant pays a bit less than a year ago. The peso has been stable at about 40.1 to 40.3 per dollar since August, so dollar figures tell the same story.
What's the outlook for rents in Montevideo over the next 12 months?
We expect existing leases to keep rising about 4% to 5% a year, because the coefficient follows inflation, and new asking rents to stay between flat and +3% (our estimate).
What supports rents: indexation, steady jobs, students and young couples moving out, and demand for small flats near the Rambla. What holds them back: many new promoted-housing (vivienda promovida) flats reaching the rental market in Cordón, Centro, La Blanqueada and Buceo, and tenants who are already stretched.
Pocitos, Punta Carretas, Parque Rodó and Cordón are the barrios most likely to beat the average. The main risks are weaker household incomes and too many new flats in a few barrios.
Starting a Rental in Uruguay
Which neighborhoods rent best in Montevideo?
For a landlord, the best mix of rent and demand is in Pocitos, Punta Carretas, Cordón, Parque Rodó, Buceo and Malvín. Carrasco pays the most, but for bigger and slower-to-let homes.
Which neighborhoods have the highest rents?
Carrasco, Golf, Puerto Buceo and Punta Carretas top the list. In August 2026 the average apartment asked UYU 78,485 in Carrasco, UYU 77,038 in Golf, UYU 66,942 in Puerto Buceo and UYU 49,915 in Punta Carretas, against UYU 40,653 in Pocitos (Inmuebles Data–Gallito).
At the other end, the cheapest barrios were Maroñas (UYU 16,457), Colón (UYU 17,518) and La Teja (UYU 18,487).
Tenants in the top areas pay for the Rambla, newer buildings, a garage and the feeling of safer streets. They are mostly professional couples, executives, small families and expats. We compare the areas from a buyer's angle in our article on the best areas to invest in property in Montevideo.
Where do young professionals prefer to rent in Montevideo right now?
Cordón, Pocitos and Parque Rodó come first, followed by Centro, Palermo, Tres Cruces and Buceo.
They usually pay UYU 24,000 to UYU 35,000 (about USD 600 to USD 875, or EUR 535 to EUR 780) for a studio or 1-bedroom, in line with the 1-bedroom medians of UYU 27,000 in Cordón, UYU 28,000 in Parque Rodó and UYU 29,000 in Pocitos.
They want cafés, buses, universities, offices, gyms and the Rambla close enough to live without a car.
Where do families prefer to rent in Montevideo right now?
Malvín, Pocitos and Carrasco come first, with Punta Gorda, Buceo, Parque Batlle, Prado and La Blanqueada close behind.
Families usually pay UYU 38,000 to UYU 75,000 (about USD 950 to USD 1,870, or EUR 845 to EUR 1,670) for a 2- or 3-bedroom. The average 3-bedroom asks UYU 70,828 (Gallito, August 2026).
They come for bigger flats, a garage, calmer streets and schools such as The British Schools, Scuola Italiana di Montevideo and Lycée Français Jules Supervielle, plus many private and public schools around Pocitos, Malvín and Parque Batlle.
Which areas near transit or universities rent faster?
Cordón, Tres Cruces and Parque Rodó rent fastest, with Centro and La Blanqueada close behind when prices are fair.
A well-priced small flat there often finds a tenant in 15 to 30 days, while overpriced ones, or ones with high building fees, sit much longer (our estimate).
Being near Avenida 18 de Julio, Bulevar Artigas, Avenida Italia, the Tres Cruces terminal or the Udelar faculties can add UYU 2,000 to UYU 5,000 (about USD 50 to USD 125, or EUR 44 to EUR 110) a month.
Which neighborhoods are most popular with expats in Montevideo right now?
Pocitos, Punta Carretas and Ciudad Vieja come first, with Parque Rodó, Cordón, Carrasco, Malvín and Buceo also popular.
Expats usually pay UYU 32,000 to UYU 60,000 (about USD 800 to USD 1,500, or EUR 710 to EUR 1,330) a month, depending on size and furniture. In Ciudad Vieja, the median 1-bedroom asks UYU 26,000 (Cambio Uruguay, October 2026).
They come for walkable streets, the sea, furnished options and easy daily life. Argentinians, Brazilians, Europeans and North Americans are the most visible groups, but locals still make up most tenants. If you are moving yourself, read our guide for expats in Montevideo.
70+pagesWho rents, and what do tenants want in Montevideo right now?
Demand is mostly local, salaried and practical. Expats and remote workers matter in Pocitos, Punta Carretas, Ciudad Vieja and Carrasco, but they are a minority.
The local quirk is the rental guarantee: a tenant with a clean ANDA, CGN or insurer guarantee often beats one offering more rent without one. The CGN guarantee costs the landlord a 3% commission on the rent.
What tenant profiles dominate rentals?
Local workers and couples, students and young professionals, and families looking for a 2- or 3-bedroom.
Our estimate: local workers and couples are about 45% of demand, students and young professionals about 30%, families about 20%, and expats and temporary renters most of the rest.
Workers and couples look for studios and 1-bedrooms, students for small flats in Cordón, Parque Rodó and Tres Cruces, and families for 2- or 3-bedrooms in Malvín, Pocitos, Buceo, La Blanqueada, Parque Batlle and Carrasco. We go through the numbers of a buy-to-let in our guide on how to buy and rent out in Montevideo.
Do tenants prefer furnished or unfurnished?
Most do not want furniture: we estimate 80% to 90% of long-term tenants look for unfurnished or semi-equipped flats.
A furnished flat can rent for UYU 4,000 to UYU 10,000 (about USD 100 to USD 250, or EUR 89 to EUR 220) more a month, but only where that demand exists: Pocitos, Punta Carretas, Ciudad Vieja and Parque Rodó.
It comes from expats, company tenants, students, remote workers and people between two homes.
Which amenities increase rent the most?
The five that matter most are a garage, a balcony or terrace, air conditioning, a sea view or Rambla location, and a modern kitchen and bathroom.
A garage can add UYU 3,000 to UYU 6,000 a month, a balcony UYU 2,000 to UYU 5,000, air conditioning UYU 1,000 to UYU 3,000, a sea view or the Rambla UYU 4,000 to UYU 10,000, and modern finishes UYU 3,000 to UYU 7,000 (our estimate). That is about USD 25 to USD 250, or EUR 22 to EUR 220, depending on the feature.
What renovations get the best ROI for rentals?
The five that pay back best are paint and damp repair, better lighting, a kitchen refresh, a bathroom update and air conditioning.
Our estimates for a small flat: paint UYU 25,000 to UYU 60,000 for UYU 1,000 to UYU 3,000 more rent a month; lighting UYU 10,000 to UYU 35,000 for UYU 500 to UYU 2,000; a kitchen UYU 80,000 to UYU 250,000 for UYU 3,000 to UYU 7,000; a bathroom UYU 100,000 to UYU 250,000 for UYU 3,000 to UYU 8,000; air conditioning UYU 25,000 to UYU 60,000 for UYU 1,000 to UYU 3,000. The work costs about USD 250 to USD 6,230 (or EUR 220 to EUR 5,560) depending on scope.
Skip luxury finishes, expensive furniture and anything that raises building fees more than rent, unless the flat is near the Rambla in Pocitos, Punta Carretas, Puerto Buceo, Malvín or Carrasco.
70+pagesHow strong is rental demand in Montevideo right now?
Solid and local, but not strong enough to let any flat at any price: new asking rents are 3.91% lower than a year ago.
What's the vacancy rate for rentals?
No official vacancy rate exists. Our estimate is 4% to 6% for normal flats.
Well-priced units in Pocitos, Punta Carretas, Cordón, Parque Rodó and Buceo can be closer to 3% to 5%, while old, overpriced or high-building-fee flats can sit at 7% or more.
The census counts many more empty homes, but most of them are not on the rental market.
How many days do rentals stay listed?
A well-priced flat usually stays listed for 25 to 40 days (our estimate).
Good studios and 1-bedrooms in Cordón, Pocitos, Parque Rodó and Tres Cruces can go in 15 to 30 days; overpriced premium units and old family flats take 45 to 75 days.
With asking rents down on the year, a flat priced above recent listings sits longer. Tenants compare rent plus building fees, not rent alone.
Which months have peak tenant demand?
February, March and April are the busiest months, with a smaller peak in July and August.
That follows the university calendar, job moves and decisions made after the summer holidays.
December and January are the quietest months for long leases, when people think about the beach rather than a city flat.
How much can rent go up when a Montevideo lease renews in 2026?
For a standard lease, by the INE coefficient of the month the contract turns one year old: 4.27% in August 2026 and 4.55% in September 2026. The coefficient follows inflation, which was 4.68% over the 12 months to September.
In practice, a UYU 30,000 rent renewing in September goes up by UYU 1,365, to UYU 31,365, and a 2-bedroom at the Montevideo average of UYU 40,065 goes up by about UYU 1,820.
Leases signed under the no-guarantee regime of Law 19.889 (LUC) are different: the rent can be set in pesos, dollars, UI or UR, and it moves the way the contract says. If the tenant stops paying under that regime, the law gives 6 business days to leave once the court has ruled, but the whole process takes longer.
What to do: if you are a landlord, price a new lease from current listings, not from last year's rent plus the coefficient, because new rents are below last year's. If you are a tenant, check which regime and which index your contract uses before you sign, and compare the renewal with the barrio medians above.
70+pagesDoes Airbnb pay more than a long lease in Montevideo right now?
Usually not. AirROI's average Montevideo listing charged UYU 2,936 a night (about USD 73), was booked 44% of the time and grossed about UYU 312,000 (about USD 7,780) over the 12 months to September 2026. Twelve months of an average 1-bedroom lease at UYU 29,368 is UYU 352,000.
The gap grows after costs. For a Pocitos 1-bedroom let at the city average of UYU 29,368 a month, we estimate a long lease nets about UYU 261,000 a year (about USD 6,510), or 3.7%, while the same flat on Airbnb with a manager makes a small loss at AirROI's average revenue (about UYU 22,500 a year) and nets only UYU 47,900 if it is open every night.
Competition is also rising: AirROI counts 2,487 Montevideo listings, 32% more than a year earlier.
What to check before you switch: the building's rules on short stays, the building fees you would pay yourself, and whether you can host it yourself. AirROI's average 1-bedroom grossed UYU 313,000; a 2-bedroom UYU 408,000.
What will my monthly costs be in Montevideo as a landlord?
Set aside 20% to 30% of the gross rent for vacancy, repairs, administration, insurance and building surprises, before financing and income tax. On a UYU 30,000 rent, that is UYU 6,000 to UYU 9,000 (about USD 150 to USD 225) a month.
What property taxes should landlords expect in Montevideo?
Budget about UYU 25,000 to UYU 80,000 (about USD 625 to USD 2,000, or EUR 555 to EUR 1,780) a year for property taxes on a normal flat (our estimate).
It can go from about UYU 15,000 for a modest flat to more than UYU 150,000 for a big coastal one, because the taxes are calculated on the official cadastral value, not on the price you paid.
There are two main bills. The municipal contribución inmobiliaria uses 2026 rates from 0.25% of the taxable value in the lowest band to 0.75%–1.80% in the higher bands. The national Impuesto de Primaria adds 0.15% to 0.30% of the cadastral value.
What utilities do landlords often pay in Montevideo right now?
Tenants usually pay electricity, water, internet, gas and the ordinary building fees (gastos comunes). Landlords pay property taxes, extraordinary building works, insurance, major repairs and the building fees whenever the flat is empty.
Building fees for a 2-bedroom run UYU 3,000 to UYU 6,000 (about USD 75 to USD 150) a month in a basic building, UYU 6,000 to UYU 12,000 with a part-time doorman and UYU 12,000 to UYU 25,000 with full service and amenities (INGAR, 2026). Basic home insurance costs about UYU 5,088 to UYU 7,482 a year (BBVA / MAPFRE).
Tenants look at rent plus building fees, so high fees make a flat harder to let even when the rent looks fair.
How is rental income taxed?
Residents pay IRPF and non-residents pay IRNR, both at 12% of the taxable rental income. In practice, 10.5% of the gross rent is withheld or paid in advance each month, and the final bill is settled once a year (DGI).
Some costs reduce the taxable income, such as the property tax and Impuesto de Primaria. Promoted-housing (vivienda promovida) flats can be exempt from this tax for 10 years, but check the exact benefit of the unit before you buy.
What it means for returns: the median gross yield across Montevideo barrios is 6.1% on asking prices (INGAR, September 2026), from 5.1% in Punta Carretas and Parque Rodó to 7.0% in Ciudad Vieja. After 20% to 25% of costs and the 10.5% tax advance, 6.1% gross leaves about 4% net.
The usual mistakes are confusing the municipal property tax with the national rental income tax, mixing up resident and non-resident rules, forgetting the withholding when the tenant uses a CGN guarantee, and using asking rent instead of signed rent in your numbers. We list more in our article on the risks and pitfalls of buying property in Montevideo.
Our methodology
This article looks at long-term residential rents in Montevideo: what studios, 1-, 2- and 3-bedrooms rent for, how fast rents are moving, which barrios rent best, who the tenants are, how Airbnb compares and what a landlord pays.
For official figures, we used INE: the average signed lease (August 2026), the yearly adjustment coefficient for renewals (August and September 2026) and inflation (September 2026). For new leases, we used asking rents from Inmuebles Data–Gallito (August 2026), barrio medians from Cambio Uruguay (October 2026), InfoCasas barrio guides and yields from INGAR (September 2026). For short-term rentals, we used AirROI only.
For the rules, we used DGI for rental income tax, IMPO for Law 19.889 on leases without a guarantee, the Intendencia de Montevideo for property tax, and the CGN and ANDA for rental guarantees.
We checked these figures in October 2026. Peso amounts are converted at about 40.1 pesos per US dollar and 45 pesos per euro (BCU, October 2026). Long-term rents in Montevideo are almost always set in pesos, while property prices are quoted in dollars.
The limits: portal figures are asking rents, not signed leases, and they leave out building fees. There is no official vacancy rate, days-to-let figure or rent per m², so those are our own estimates, and we say so where we use them. INE changed its average-lease method in 2026, so we did not compare that average with last year's.
Key sources used for this analysis include INE rental market, August 2026, INE inflation, September 2026, INE rent coefficient (datosUruguay), El País / Inmuebles Data, Cambio Uruguay, INGAR, AirROI, DGI, IMPO, Intendencia de Montevideo and BCU.
