How profitable are Airbnb rentals in San Miguel de Allende? (January 2026)

If you're wondering what rental returns to expect in San Miguel de Allende, you're in the right place.

We've compiled the latest data on gross yields, net yields, vacancy rates, and neighborhood performance to help you decide.

This article is updated regularly to reflect current market conditions.

And if you're planning to buy property here, you may want to download our pack covering the real estate market in San Miguel de Allende.

Who is the author of this content?

THE LATINVESTOR

A team specialized in real estate investing in LATAM countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in San Miguel de Allende. If you’d like to learn more about us, you can check our presentation page.

What are the rental yields in San Miguel de Allende as of 2026?

What's the average gross rental yield in San Miguel de Allende as of 2026?

As of early 2026, the average gross rental yield in San Miguel de Allende is approximately 5.4%, meaning investors collect annual rent equal to about 5.4% of their property's purchase price before expenses.

Most residential properties fall within a 3.5% to 7.5% gross yield range, depending on location, property type, and pricing.

San Miguel de Allende's average gross yield is slightly below Mexico's larger urban centers because sale prices carry a "lifestyle premium" that doesn't fully translate into higher long-term rents.

The key factor influencing yields here is the disconnect between what buyers pay for charm and walkability versus what tenants pay monthly, compressing yields in the most desirable areas.

What's the average net rental yield in San Miguel de Allende as of 2026?

As of early 2026, the average net rental yield in San Miguel de Allende is approximately 3.6%, what remains after subtracting typical operating costs.

The typical gross-to-net gap is around 1.8 percentage points, meaning roughly one-third of gross income goes toward expenses.

The expense category that most reduces gross yield here is HOA fees ("mantenimiento") combined with property management, which can consume 15 to 20% of rental income in gated communities.

Most investment properties deliver net yields of 2.2% to 5.2%, with lower yields in premium Centro locations and higher yields in La Lejona or Arcos de San Miguel.

By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in San Miguel de Allende.

We made this infographic to show you how property prices in Mexico compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

What yield is considered "good" in San Miguel de Allende in 2026?

In San Miguel de Allende in 2026, investors generally consider a gross yield of 6% or higher "good," providing a cushion above market average after expenses.

The threshold separating average from high-performing properties is around 6% gross (or 4% net), representing the upper half of realistic outcomes in this lifestyle-premium market.

How much do yields vary by neighborhood in San Miguel de Allende as of 2026?

As of early 2026, the yield spread between highest and lowest neighborhoods can reach 4 to 5 percentage points, from around 3% in premium areas to 8% in accessible colonias.

Neighborhoods delivering the highest yields are those with reasonable prices and solid renter demand: La Lejona, Arcos de San Miguel, Jardines de Allende, and Ignacio Ramírez.

Lowest-yield neighborhoods are prestige areas where buyers pay heavily for walkability and views: Centro Histórico, Atascadero, Ojo de Agua, and parts of Malaquín.

Yields vary because sale prices respond faster to charm and proximity to the jardin than long-term rents do, creating a wedge between what investors pay and tenants cover.

By the way, we've written a blog article detailing what are the current best areas to invest in property in San Miguel de Allende.

How much do yields vary by property type in San Miguel de Allende as of 2026?

As of early 2026, gross yields range from around 4% for large homes near Centro to 7% or more for compact condos and studios in practical neighborhoods.

Smaller condos and apartments (studios, one-bedrooms, compact two-bedrooms) deliver the highest yields, often outperforming larger homes by 0.5 to 1.5 percentage points.

Large colonial houses (three to five bedrooms) near Centro deliver the lowest yields because purchase prices inflate faster than tenants will pay monthly.

Yields differ because smaller units rent to wider tenant pools (remote workers, couples, solo expats) and cost less to furnish and maintain.

By the way, you might want to read the following:

What's the typical vacancy rate in San Miguel de Allende as of 2026?

As of early 2026, average vacancy for well-priced long-term rentals in San Miguel de Allende is around 7%, roughly one month per year.

Vacancy ranges from about 4% in high-demand areas to 12% or more for luxury-priced or oversized units attracting narrower tenant pools.

The main vacancy driver is pricing strategy: well-priced rentals move quickly while overpriced listings sit for months.

San Miguel de Allende's vacancy dynamics are unique because many second homes inflate "empty housing" statistics, but this doesn't mean rental vacancies are high for properly managed units.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in San Miguel de Allende.

What's the rent-to-price ratio in San Miguel de Allende as of 2026?

As of early 2026, San Miguel de Allende's average rent-to-price ratio is approximately 0.45% monthly (5.4% annually), meaning monthly rent equals about 0.45% of purchase price.

A ratio of 0.5% monthly (6% annually) or higher is considered favorable for buy-to-let investors; this ratio is simply another way of expressing gross yield.

San Miguel de Allende's ratio is lower than Guadalajara or Monterrey because buyers pay lifestyle premiums that long-term renters don't fully absorb.

We have made this infographic to give you a quick and clear snapshot of the property market in Mexico. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Which neighborhoods and micro-areas in San Miguel de Allende give the best yields as of 2026?

Where are the highest-yield areas in San Miguel de Allende as of 2026?

As of early 2026, the highest-yield neighborhoods are La Lejona, Arcos de San Miguel, and Jardines de Allende, with Ignacio Ramírez and entry-level Zirándaro also delivering strong returns.

In these areas, investors typically achieve gross yields of 6% to 8%, notably higher than the citywide 5.4% average.

These high-yield areas share accessible prices while benefiting from consistent renter demand, practical amenities, gated security, and decent Centro access.

You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in San Miguel de Allende.

Where are the lowest-yield areas in San Miguel de Allende as of 2026?

As of early 2026, the lowest-yield neighborhoods are Centro Histórico, Atascadero, and Ojo de Agua, with premium Malaquín pockets also delivering compressed returns.

Gross yields in these areas typically range from just 3% to 5%, significantly below average.

Yields are compressed because buyers pay enormous premiums for colonial charm, walkability, and views that tenants won't pay proportionally more for monthly.

Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in San Miguel de Allende.

Which areas have the lowest vacancy in San Miguel de Allende as of 2026?

As of early 2026, the lowest-vacancy neighborhoods are San Antonio, Guadalupe, and Arcos de San Miguel, with La Lejona and Jardines de Allende also strong.

Landlords in these areas typically see 3% to 5% vacancy, meaning units stay occupied 11.5+ months per year when priced correctly.

Low vacancy in San Antonio, Guadalupe, and Arcos stems from practical convenience, reasonable pricing, and appeal to both local renters and longer-stay expats.

The trade-off: the same accessibility keeping units full means you're unlikely to achieve the highest gross yields since you're competing on value rather than prestige.

Which areas have the most renter demand in San Miguel de Allende right now?

The strongest renter demand is in Centro (walkable lifestyle seekers), Arcos de San Miguel (practical convenience), and La Lejona (value-conscious longer-term tenants).

Demand splits into two profiles: lifestyle-focused tenants (solo expats, remote workers, couples) prioritizing walkability in Centro, and logistics-focused tenants (families, longer-stay residents) wanting parking and gated security in Arcos or La Lejona.

In these neighborhoods, well-priced listings fill within two to four weeks, compared to months for overpriced units elsewhere.

If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in San Miguel de Allende.

Which upcoming projects could boost rents and rental yields in San Miguel de Allende as of 2026?

As of early 2026, the top infrastructure projects expected to boost rents are urban works along Salida a Celaya, libramiento bypass improvements, and Centro Histórico water network renewal.

Neighborhoods likely to benefit include Arcos de San Miguel, La Lejona, Allende, gated communities toward Celaya, and Centro Histórico from improved water reliability.

Once completed, investors might expect rent increases of 5% to 15% over two to three years as improved mobility makes these neighborhoods more attractive.

You'll find our latest property market analysis about San Miguel de Allende here.

What property type should I buy for renting in San Miguel de Allende as of 2026?

Between studios and larger units in San Miguel de Allende, which performs best in 2026?

As of early 2026, smaller units (studios and one-bedrooms) outperform larger units in both yield and occupancy, making them better for pure cashflow investors.

Studios and one-bedrooms yield 6% to 7.5% gross (MXN, equivalent in USD at prevailing rates), compared to 4% to 5.5% for three or four-bedroom homes.

Smaller units outperform because they rent to wider tenant pools and cost less to furnish, maintain, and turn over.

However, three-bedroom homes in gated communities may be better if targeting families on longer stays or corporate rentals, since these tenants sign longer leases.

What property types are in most demand in San Miguel de Allende as of 2026?

As of early 2026, the most in-demand property type is the two-bedroom, two-bathroom unit, the rental market workhorse for couples wanting a guest room or office.

Top three by demand: two-bedroom units in walkable or gated areas; small three-bedrooms in family-friendly gated communities; and one-bedrooms in practical neighborhoods.

This pattern is driven by remote workers and semi-retired expats needing flexible work-from-home space without the burden of a large colonial house.

One underperforming type: oversized four or five-bedroom colonial homes in Centro, which attract narrow tenant pools and sit vacant for months.

What unit size has the best yield per m² in San Miguel de Allende as of 2026?

As of early 2026, units between 50 and 80 square meters deliver the best gross yield per m², corresponding to studios, one-bedrooms, and compact two-bedrooms.

For this size, expect MXN 180 to 280 per m² monthly rent against MXN 35,000 to 55,000 per m² purchase price (roughly USD 10 to 15 rent versus USD 1,900 to 3,000 purchase).

Larger units have lower yield per m² because rents don't scale linearly with size; tenants won't pay proportionally more for extra space.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in San Miguel de Allende.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Mexico 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 costs cut my net yield in San Miguel de Allende as of 2026?

What are typical property taxes and recurring local fees in San Miguel de Allende as of 2026?

As of early 2026, annual property tax (predial) for a typical rental apartment ranges from MXN 3,000 to MXN 15,000 (USD 150 to 750 / EUR 140 to 700), varying because predial is based on fiscal value, not market value.

Landlords should also budget HOA fees ("mantenimiento") for gated communities or condos, typically MXN 1,500 to MXN 6,000 monthly (USD 75 to 300 / EUR 70 to 280).

Combined, taxes and fees represent about 5% to 12% of gross rental income, higher end for condos with substantial HOA.

By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in San Miguel de Allende.

What insurance, maintenance, and annual repair costs should landlords budget in San Miguel de Allende right now?

Annual landlord insurance costs MXN 2,000 to MXN 12,000 (USD 100 to 600 / EUR 95 to 560), depending on coverage and insured value.

Recommended maintenance/repair budget: 0.8% to 1.5% of property value annually, higher for older colonial homes with aging plumbing and electrical.

The repair expense catching landlords off guard most often: water-related issues, including plumbing failures, water heater replacements, and drainage problems in older colonials.

Total combined budget: MXN 40,000 to MXN 120,000 yearly (USD 2,000 to 6,000 / EUR 1,900 to 5,600) for insurance, maintenance, and reserves on a mid-range property.

Which utilities do landlords typically pay, and what do they cost in San Miguel de Allende right now?

For unfurnished rentals, tenants pay all utilities; for furnished "expat-style" rentals, landlords often include internet and sometimes water, with electricity either capped or passed through.

When landlords cover utilities, expect MXN 1,500 to MXN 4,000 monthly (USD 75 to 200 / EUR 70 to 185) for internet and water, more if A/C or heating is used heavily.

What does full-service property management cost, including leasing, in San Miguel de Allende as of 2026?

As of early 2026, full-service management costs 8% to 12% of collected rent (MXN 1,500 to MXN 4,000 monthly for mid-range rentals, USD 75 to 200 / EUR 70 to 185), higher for hands-on furnished properties.

Leasing/tenant-placement fees typically equal one month's rent (MXN 15,000 to MXN 35,000 / USD 750 to 1,750 / EUR 700 to 1,650), charged each time a new tenant is placed.

What's a realistic vacancy buffer in San Miguel de Allende as of 2026?

As of early 2026, landlords should set aside 7% to 8% of annual income as vacancy buffer, covering the typical gap between tenants.

This translates to three to four vacant weeks yearly for well-priced units; luxury or oversized properties may see six weeks or more.

What sources have we used to write this blog article?

Whether in our blog articles or the analyses in our property pack about San Miguel de Allende, we rely on the strongest methodology possible and don't throw out numbers at random.

We aim for full transparency, so below are the authoritative sources we used with explanations of how we applied them.

Source	Why it's authoritative	How we used it
SHF House Price Index	SHF is a federal housing-finance institution publishing one of Mexico's most cited price indices.	We used it as macro anchor for Mexico-wide price momentum and to sanity-check San Miguel de Allende trends.
SHF Q2 2025 Report	Official SHF release summarizing nationwide price levels with methodology.	We framed the national baseline to interpret a premium market like San Miguel de Allende within the broader cycle.
INEGI Census 2020	INEGI is Mexico's official statistics agency; the census is the definitive housing-stock snapshot.	We grounded vacancy context around occupied vs. non-occupied housing and avoided treating a tourism market like a commuter market.
San Miguel de Allende Predial Portal	Official municipal website for property tax payments and guidance.	We confirmed predial administration and translated tax law into practical landlord expectations.
Ley de Ingresos 2026	Official published municipal revenue law including 2026 predial rules.	We pinned down predial rates, brackets, and fiscal value calculations to build realistic cost ranges.
Inmuebles24 Rentals	One of Mexico's largest property portals with consistent price, size, and maintenance fields.	We estimated rent ranges by neighborhood and unit size, plus captured HOA examples affecting net yield.
Inmuebles24 Sales	Large, liquid dataset for asking prices across neighborhoods.	We estimated price ranges and price-per-m² bands, then paired with rents to compute yields.
Propiedades.com Rentals	Major Mexican portal helping reduce single-site bias.	We cross-checked rent levels and neighborhood mixes to validate assumptions aren't portal-specific.
Propiedades.com Values	Provides stats view with median-style pricing approach.	We used it as directional check on pricing to triangulate Inmuebles24-derived bands.
Lamudi Rentals	Large portal useful for cross-checking rent ranges by colonia.	We used it as third cross-check for rent bands and colonia supply patterns.
Vivanuncios Rentals	High-traffic classifieds with many long-term rental ads in secondary neighborhoods.	We sanity-checked non-luxury rent levels underrepresented on luxury-heavy sites.
Banco de México FX	Mexico's central bank and official FX benchmark source.	We explained how official USD/MXN works for readers thinking in USD while keeping calculations in MXN.
CFE Tariffs	Federal utility's official residential tariff portal.	We grounded electricity costs, a big variable in furnished rentals with A/C or heating.
SMA Water Network News	City's official communications for public works.	We identified rent-supportive infrastructure reducing disruption and improving reliability.
El Sol del Bajío	Reputable regional press covering municipal infrastructure projects.	We identified mobility projects and translated locations into rental micro-market impacts.
El Sol de Puebla Insurance	Consumer-focused guidance on home insurance costs.	We triangulated insurance ranges for landlords with industry context.
CONDUSEF	Mexico's consumer financial protection agency with authoritative guidance.	We anchored insurance and financial cost estimates, combining with real examples for budgets.