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San Pedro Sula rental market offers attractive yields for investors, with one-bedroom apartments averaging L14,600 monthly in the city center and gross yields ranging from 5-7% for most property types. The market shows strong fundamentals driven by industrial growth, university demand, and emerging short-term rental opportunities that can generate 8-10% net returns for optimized properties.
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San Pedro Sula rental market delivers solid returns with one-bedroom city center apartments renting for L14,600 ($580) monthly and two-bedroom units commanding L18,000-L25,000 ($720-$1,000) in standard areas.
Net rental yields typically range from 3-7% depending on property type and location, with short-term rentals achieving higher returns but requiring more active management and seasonal considerations.
| Property Type | Average Monthly Rent | Gross Yield Range | Net Yield Range |
|---|---|---|---|
| 1-bed apartment (city center) | L14,600 ($580) | 5-7% | 3-5% |
| 2-bed apartment (standard) | L18,000-L25,000 ($720-$1,000) | 5.5-7% | 4-5.5% |
| 3-bed apartment/house | L23,700-L30,000 ($940-$1,200) | 4-6% | 2-4% |
| Short-term rental (optimized) | L12,000-L41,000 ($480-$1,640) | 10-13% | 8-10% |
| Value neighborhoods | L8,000-L15,000 ($320-$600) | 7-9% | 5-7% |
What are the current monthly rent prices for different property types in San Pedro Sula neighborhoods?
Monthly rent prices in San Pedro Sula vary significantly based on property type and location as of September 2025.
In the city center, one-bedroom apartments average L14,600 ($580) monthly, while outside the center they drop to L10,800 ($430). Two-bedroom apartments show wider variation, with standard properties renting for L18,000-L25,000 ($720-$1,000), though premium new builds can reach L34,700 ($1,380). Three-bedroom apartments command L23,700 ($940) in the city center and L19,000 ($760) outside central areas.
Premium neighborhoods like Colonia Trejo see apartment rents starting at L15,000 ($600) and houses ranging L30,000-L40,000 ($1,200-$1,600). Mid-tier areas including Colonia Universidad, Jardines del Valle, and Mackay typically rent for L20,000-L35,000 ($800-$1,400) depending on property size and condition. Budget districts on the outskirts offer more affordable options at L8,000-L15,000 ($320-$600) for one to two-bedroom units.
Houses across the city range from L30,000-L50,000 ($1,200-$2,000) for standard three to four-bedroom properties, with luxury and large central properties commanding much higher rents. Studios remain limited in supply, typically ranging L7,000-L10,000 ($280-$400) in central areas.
How do rent prices change based on unit size and what's the cost per square meter?
Rent prices in San Pedro Sula correlate directly with unit size, with the average rent per square meter in the city center reaching L434 ($17-$18) monthly.
A typical two-bedroom apartment of 80 square meters rents for approximately L34,650 monthly, calculating to L434 per square meter. City center apartments generally range from 40-110 square meters, with purchase prices of $1,000-$1,500 per square meter and corresponding rental rates. Outside the center, properties cost about 30% less to rent, with purchase prices dropping to $600-$900 per square meter.
Larger units show economies of scale, with per-square-meter costs often decreasing as total size increases. Smaller apartments under 50 square meters tend to command premium per-square-meter rates due to their appeal to young professionals and students. Properties over 100 square meters typically target families and show more competitive per-square-meter pricing.
New construction and recently renovated properties command premiums of 15-25% above older stock, regardless of size. Location within neighborhoods also affects per-square-meter pricing, with street-level commercial potential and proximity to amenities adding value.
What are the total purchase costs including all fees and taxes for different property types?
Purchase prices in San Pedro Sula include significant additional costs beyond the listed property price that buyers must factor into their investment calculations.
Small one-bedroom apartments in the city center or affluent districts cost $60,000-$110,000, while two-bedroom apartments range $90,000-$180,000. Three to four-bedroom apartments command $150,000-$300,000 or more for premium units. Houses vary widely from mid-market properties at $140,000-$300,000 to luxury homes reaching $300,000-$1,000,000.
Transaction costs add substantial expense to any purchase. Transfer taxes range 1.5-2.5% of purchase price, while legal fees typically run 1-3%. Notary, registration, and municipal taxes add another 0.3-0.8%. Agent commissions standard at 3-5% complete the major expense categories.
Total closing costs realistically range 4.5-6.5% of purchase price, plus additional fees of $200-$800 for inspections, title searches, and translation services if needed. For a $150,000 property, buyers should budget $6,750-$9,750 in closing costs plus the additional miscellaneous fees, bringing total acquisition costs to approximately $157,000-$160,000.
What mortgage terms are available and what would monthly payments look like?
Mortgage financing in San Pedro Sula as of September 2025 offers limited but viable options for qualified buyers and investors.
Interest rates currently range 7.5-12.5%, with the best qualified buyers securing rates between 9-11%. Typical loan terms extend 15-20 years maximum, shorter than many international markets. Loan-to-value ratios typically cap at 60-80%, requiring down payments of 20-40% of purchase price.
For a $150,000 property purchase with 20% down payment ($30,000), financing $120,000 at 10% interest over 20 years results in monthly payments of approximately $1,159 excluding property taxes and insurance. Higher interest rates of 11-12% would increase payments to $1,240-$1,320 monthly for the same loan amount and term.
Buyers should qualify based on debt-to-income ratios and demonstrate stable income sources. Foreign buyers may face additional documentation requirements and potentially higher rates. It's something we develop in our Honduras property pack.
What are the ongoing expenses and net cash flow after all costs?
Net rental income in San Pedro Sula requires careful calculation of multiple ongoing expenses that reduce gross rental receipts.
Property taxes run 0.25-0.35% annually of property value, meaning a $200,000 home faces $500-$700 yearly in taxes. HOA or condominium fees range $50-$200 monthly for typical properties, reaching $500 monthly for high-end buildings. Property insurance costs $200-$300 annually for standard coverage. Professional management typically charges 5-12% of gross rent, with 10% most common for full-service management.
Maintenance and capital expenditure reserves require $40-$80 monthly per unit as baseline planning. Vacancy losses should be factored at 5-10% of gross rent to account for turnover periods. Most tenants pay utilities directly, though owners may cover basic services for furnished short-term rentals or fully serviced units.
For a one-bedroom apartment generating $600 monthly gross rent, expenses might include: HOA $100, property taxes $25, insurance $25, management $60, maintenance $40, and vacancy reserve $30. This leaves net monthly income of $320-$350. When leveraged with typical mortgage payments of $430-$650, cash flow often runs slightly negative initially, offset by equity building and appreciation potential.
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What are the current gross and net rental yields by property type and area?
Rental yields in San Pedro Sula remain attractive compared to many regional markets, though they vary significantly by property type and location.
One-bedroom apartments in the city center typically generate 5-7% gross yields, translating to 3-5% net yields after expenses. Two-bedroom apartments in good locations achieve similar 5.5-7% gross yields with 4-5.5% net yields. Three-bedroom apartments and houses in central areas show lower yields at 4-6% gross and 2-4% net due to higher purchase prices relative to rental income.
Value neighborhoods offer higher yields, with gross returns of 7-9% and net yields of 5-7% for investors willing to accept potentially higher management requirements and tenant turnover. These areas attract budget-conscious renters including industrial workers and students.
Current yields compare favorably to financing costs for cash buyers but create tight spreads for leveraged investors. With mortgage rates at 9-12%, leveraged investments require careful property selection and conservative underwriting to generate positive cash flow. Buyers using significant down payments or cash purchases enjoy better yield spreads and immediate positive cash flow potential.
What are typical vacancy rates and how long does it take to find tenants?
Vacancy and collection metrics in San Pedro Sula reflect a moderately tight rental market with seasonal and property-specific variations.
Citywide vacancy rates average 7-12%, rising to 15% or higher in older or less desirable areas. Furnished short-term rentals experience higher vacancy due to seasonal demand patterns. Collection losses remain relatively low at under 2% in higher-end managed buildings, though they can reach 5-8% for budget properties or those with poor management.
Average time on market for long-term rentals spans 30-90 days, with well-priced units in good locations leasing faster. Furnished properties and short-term rentals typically find bookings within 14-30 days of listing. Short-term rental occupancy averages 32% citywide according to AirROI data, though top-performing properties achieve 65-80% occupancy through superior marketing and management.
Seasonal patterns affect rental markets, with higher demand during certain months corresponding to university schedules and industrial cycles. Properties near universities show more predictable seasonal patterns, while those serving industrial workers may face different demand cycles. Best-in-class short-term rentals maintain consistent booking through effective pricing strategies and guest experience optimization.
Who are the main tenant types and what drives rental demand in different areas?
San Pedro Sula rental demand comes from diverse tenant profiles, each concentrated in specific areas and property types.
City center and core areas attract young professionals, business executives, and some expatriates working for NGOs, embassies, or regional corporate headquarters. These tenants typically seek modern amenities and proximity to business districts. University areas generate steady demand from local and regional students requiring affordable housing options.
Industrial belt and outskirt areas primarily house industrial workers, families, seasonal migrants, and logistics professionals. These areas benefit from proximity to major employment centers including the Zona Industrial and distribution facilities. Premium neighborhoods like Colonia Trejo, Jardines del Valle attract upper middle-class families, high-income professionals, and expatriate families seeking secure, well-amenitized housing.
Major employer hubs driving demand include industrial parks, distribution and logistics companies, government and civic sector employment, private educational institutions, and medical clusters. The diversified economic base provides stability to rental demand, though industrial cycles can affect certain segments. University presence ensures consistent demand for smaller units, while family-oriented neighborhoods require larger homes with security features.
How do short-term and long-term rental strategies compare in terms of returns and operations?
Short-term and long-term rental strategies in San Pedro Sula offer distinct risk-return profiles requiring different operational approaches.
Short-term rentals command average daily rates of $68 citywide with overall occupancy averaging 32%. Top-performing properties achieve 60-80% occupancy during peak seasons, generating monthly gross income ranging from $480 for typical listings up to $1,640 for the top 10% of properties. However, short-term rentals require higher operational costs including frequent cleaning, turnover expenses, and operator or concierge fees typically running 15-20% of gross revenue.
Long-term rentals provide stable occupancy typically ranging 85-95% with much lower operational and turnover costs per month. These require less active management and generate predictable monthly income, though at lower gross yield rates. Long-term strategies work best for smaller units near universities and larger family homes in secure neighborhoods.
Short-term rentals perform best in the city center, tourist corridors, and locations close to medical or industrial centers where business travelers create demand. Regulations remain very light for short-term rentals in San Pedro Sula as of 2025, providing operational flexibility. Investors must weigh higher potential returns against increased management complexity and seasonal income volatility. It's something we develop in our Honduras property pack.
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.
Can you provide specific investment examples with detailed financial projections?
Concrete investment examples illustrate the financial realities of San Pedro Sula rental property investments under current market conditions.
| Investment Scenario | 2-Bed Central Apartment | STR-Optimized 1-Bed Loft |
|---|---|---|
| Purchase Price | $110,000 | $91,000 |
| All-in Cost (5.5-6% closing) | $116,050 | $97,000 |
| Monthly Gross Income | $900 long-term | $1,440 STR average |
| Annual Gross Income | $10,800 | $17,280 |
| Annual Operating Expenses | $5,625 (HOA, taxes, mgmt, etc.) | $4,320 (25% of gross) |
| Net Annual Income | $5,175 | $12,960 |
| Net Yield | 4.5% | 10.4% |
For the leveraged scenario on the central apartment with 70% mortgage at 10% interest, monthly debt service reaches $771 ($9,252 annually), creating slightly negative cash flow initially. However, equity building and appreciation provide total return potential. The short-term rental generates strong positive cash flow even with leverage, though requires active management and seasonal planning.
These examples demonstrate the importance of property selection, operational strategy, and financing structure in determining investment success. Conservative underwriting should stress-test scenarios including higher vacancy, lower rents, and increased expenses to ensure sustainable returns.
How have rental prices and market conditions changed over recent years?
San Pedro Sula rental market has experienced significant evolution over the past five years, with acceleration in certain trends during recent periods.
Rental prices have increased 15-20% since 2020, with 6-8% growth in the past year alone reflecting continued demand pressure and limited new supply in desirable areas. Purchase prices have appreciated 3-8% annually over the last three years, with the highest appreciation occurring in new construction, core areas, and transit-rich zones.
Time to lease properties has become more favorable for landlords, with shorter rental periods for new and furnished units, while larger or older homes may take longer to lease. Short-term rental seasonality has become more pronounced as the market matures and competition increases among operators.
Yield compression has occurred as purchase price appreciation has outpaced rental growth, slightly reducing net yields despite higher gross rents. Increased HOA fees and property taxes have also contributed to margin pressure. However, gross yields remain among the strongest in Central America relative to the risk profile, maintaining San Pedro Sula's appeal for yield-seeking investors.
What are the best investment opportunities and market outlook for San Pedro Sula?
Investment opportunities in San Pedro Sula focus on specific property types and strategies that align with current market dynamics and future growth prospects.
Best current purchases include modern one to two-bedroom apartments in core rental zones, short-term rental optimized units in tourist and business corridors, value-add opportunities in emerging districts, and well-located small houses targeting stable family rental demand. These property types benefit from strong fundamentals and multiple exit strategies.
The one-year outlook suggests stable rents and prices with modest appreciation continuing. Market participants expect continued demand from industrial growth and university enrollment supporting rental markets. Five-year prospects remain strong for areas benefiting from urban renewal and industrial expansion, though yields may edge down as the market matures and attracts more capital.
The ten-year outlook anticipates market maturation with increased liquidity and institutional investor interest. San Pedro Sula's rental yields currently exceed those in Tegucigalpa while remaining below tourist-focused Roatán, positioning it favorably within Honduras. Compared to regional peers throughout Central America, San Pedro Sula offers attractive yields for its risk and price point, supported by an investor-friendly regulatory environment.
Long-term success requires focus on quality properties in growth areas, conservative financial planning, and professional management to navigate local market dynamics. It's something we develop in our Honduras 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.
San Pedro Sula rental market presents compelling opportunities for investors seeking higher yields in Central America, with net returns of 3-7% for traditional rentals and 8-10% for optimized short-term rental strategies.
Success requires careful property selection, conservative financial planning, and understanding of local tenant demand patterns, particularly the balance between industrial workers, students, professionals, and seasonal business travelers.
Sources
- Numbeo - Property Investment in San Pedro Sula
- Expat Exchange - Cost of Living in San Pedro Sula
- Fazwaz - Apartments for Rent in San Pedro Sula
- Realtor.com International - San Pedro Sula Rentals
- Properstar - San Pedro Sula Rental Properties
- The LatinVestor - San Pedro Sula Property
- AirROI - San Pedro Sula Airbnb Analytics
- The LatinVestor - How to Buy Property in Honduras