Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of Cabo San Lucas' property market is included in our pack
If you're considering buying rental property in Cabo San Lucas, understanding realistic yields is the first step to a smart investment.
This guide covers gross and net rental yields, vacancy rates, neighborhood differences, and all the costs that eat into your returns as of early 2026.
We constantly update this blog post to reflect the latest market conditions.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Cabo San Lucas.
Insights
- Cabo San Lucas rental yields average around 6% gross, but the gross-to-net gap is unusually wide (often 2+ percentage points) due to high HOA fees and maintenance costs from salt air and AC loads.
- Inland neighborhoods like El Tezal consistently deliver higher yields than beachfront areas because coastal purchase prices are inflated by lifestyle demand that long-term rents cannot support.
- A 6% vacancy buffer works for most Cabo San Lucas landlords, but luxury properties should budget 10% because the premium tenant pool is much thinner.
- Property management in Cabo San Lucas runs 8% to 12% of monthly rent, plus a one-month leasing fee for each new tenant placement.
- Condos sized 50 to 90 square meters offer the best yield per square meter because rent does not scale proportionally with size at the top end.
- Water and electricity can add MXN 2,000 to 6,500 monthly to your expenses, especially if you include utilities in furnished executive rentals.
- Pedregal and Marina areas look prestigious but often deliver gross yields below 5% because trophy pricing outpaces what tenants will pay.
- Furnished one-bedroom and compact two-bedroom condos are most in demand, driven by remote workers and seasonal residents wanting turnkey living.
What are the rental yields in Cabo San Lucas as of 2026?
What's the average gross rental yield in Cabo San Lucas as of 2026?
As of early 2026, the average gross rental yield in Cabo San Lucas sits at approximately 6% per year across all residential property types.
Most typical rental properties fall within a 4.5% to 7.5% gross yield range, depending on location, property type, and market positioning.
Compared to Mexico's national benchmarks, Cabo San Lucas yields are moderate because purchase prices run significantly higher than most Mexican cities, even though rents are also elevated by tourism and expat demand.
The biggest factor influencing gross yields is the purchase price premium in coastal and view-oriented locations, where buyers pay for lifestyle appeal that rental income cannot fully justify.
What's the average net rental yield in Cabo San Lucas as of 2026?
As of early 2026, the average net rental yield in Cabo San Lucas is approximately 3.8% per year after all recurring ownership costs.
The typical gross-to-net gap is around 2 to 2.5 percentage points, wider than many Mexican markets because operating costs here are higher.
HOA and condominium fees are the single biggest expense reducing gross to net yield, especially in amenity-heavy buildings with pools, security, and shared maintenance.
Most investment properties deliver net yields of 2.5% to 5%, with the lower end typical for luxury coastal assets and the higher end achievable in practical inland locations.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Cabo San Lucas.
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 Cabo San Lucas in 2026?
In Cabo San Lucas, a gross rental yield of 6% to 7% or higher is considered "good," while anything above 8% is very strong and usually requires buying off-peak or in value neighborhoods.
The threshold separating average from high-performing properties is around 6% gross, as many buyers accept lower yields for personal use weeks, USD-linked resale potential, and trophy location prestige.
How much do yields vary by neighborhood in Cabo San Lucas as of 2026?
As of early 2026, gross rental yields between the highest and lowest-yield neighborhoods in Cabo San Lucas can differ by 2 to 4 percentage points.
Highest-yield neighborhoods are typically inland, convenience-oriented areas like El Tezal, Brisas del Pacífico, Lagunitas, and Los Cangrejos, where prices are reasonable and renters include local professionals.
Lowest-yield neighborhoods are prime coastal zones like Pedregal, El Médano, and Marina-adjacent areas, where lifestyle buyers bid up prices beyond what rents support.
The main reason for this variation is that trophy locations command huge price premiums that long-term rental income simply cannot match.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Cabo San Lucas.
How much do yields vary by property type in Cabo San Lucas as of 2026?
As of early 2026, gross rental yields in Cabo San Lucas range from around 4% for luxury villas up to 7%+ for well-positioned condos and townhomes.
Condos and compact apartments deliver the highest yields because they balance rentability, manageable costs, and broad tenant appeal from remote workers and seasonal residents.
Luxury villas and high-end houses deliver the lowest yields because purchase prices scale faster than rents, and operating costs (maintenance, pools, larger AC systems) cut further into returns.
The key reason for these differences is that HOA fees and maintenance vary dramatically, and the lifestyle premium in villa prices is rarely recovered through rent.
By the way, you might want to read the following:
- What rental yields can you expect for an apartment in Cabo San Lucas?
- What rental yields can you expect for a villa in Cabo San Lucas?
- What rental yields can you expect for a condo in Cabo San Lucas?
What's the typical vacancy rate in Cabo San Lucas as of 2026?
As of early 2026, the typical residential vacancy rate for long-term rentals in Cabo San Lucas averages around 6%, roughly 3 to 4 weeks per year for a well-priced property.
Vacancy rates range from about 4% in high-demand inland areas to 10%+ in luxury segments where the tenant pool is thin.
The main factor driving vacancy is seasonality, as tenant searches cluster around high season, and luxury properties targeting premium rents sit empty longer.
Compared to other Mexican cities, Cabo San Lucas vacancy is reasonable but more volatile due to the tourism-driven market creating uneven year-round demand.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Cabo San Lucas.
What's the rent-to-price ratio in Cabo San Lucas as of 2026?
As of early 2026, the average monthly rent-to-price ratio in Cabo San Lucas is approximately 0.50%, meaning a typical property rents for about half a percent of its purchase price monthly (range: 0.38% to 0.63%).
A ratio of 0.50% or higher is considered favorable for buy-to-let investors, and this is essentially the monthly expression of gross yield (0.50% monthly = 6% annually).
Compared to other Mexican resort destinations, Cabo San Lucas has a moderate ratio because both rents and prices are elevated, but the balance favors sellers over landlords in prime coastal areas.
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 Cabo San Lucas give the best yields as of 2026?
Where are the highest-yield areas in Cabo San Lucas as of 2026?
As of early 2026, the top highest-yield neighborhoods in Cabo San Lucas are El Tezal, Brisas del Pacífico, and Lagunitas, all attracting year-round renters due to practical locations and accessible prices.
In these areas, gross rental yields typically range from 6% to 7.5%, with some well-bought properties in El Tezal and Los Cangrejos reaching even higher.
What these high-yield areas share is convenience for local professionals and long-term residents without the premium prices of beachfront or marina locations.
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 Cabo San Lucas.
Where are the lowest-yield areas in Cabo San Lucas as of 2026?
As of early 2026, the lowest-yield neighborhoods in Cabo San Lucas are Pedregal (especially luxury stock), El Médano near the beach, and Marina-adjacent micro-areas where trophy pricing dominates.
In these areas, gross rental yields typically range from 3.5% to 5%, with some ultra-prime properties dipping lower because prices far exceed rental income potential.
Yields are compressed here because buyers pay significant lifestyle premiums for beach access, views, and prestige that tenants won't cover through rent.
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 Cabo San Lucas.
Which areas have the lowest vacancy in Cabo San Lucas as of 2026?
As of early 2026, neighborhoods with the lowest vacancy rates in Cabo San Lucas are El Tezal, Cabo San Lucas Centro (practical units), and Brisas del Pacífico, where year-round renter demand is strongest.
In these areas, vacancy rates typically range from 3% to 5%, meaning properties spend only 2 to 3 weeks per year without a tenant.
Demand stays high here because local professionals, service industry managers, and remote workers need affordable, convenient housing year-round rather than seasonal stays.
The trade-off is that rents are more modest and capital appreciation may be slower compared to flashier beachfront zones.
Which areas have the most renter demand in Cabo San Lucas right now?
The neighborhoods with strongest renter demand in Cabo San Lucas are El Tezal for year-round convenience renters, the Marina area for lifestyle and executive tenants, and Centro for budget-conscious professionals wanting walkability.
Demand is driven by remote workers seeking turnkey furnished units, seasonal residents staying 3 to 6 months, and local service industry professionals needing affordable housing near work.
In these high-demand neighborhoods, well-priced listings typically get filled within 2 to 4 weeks, with furnished El Tezal and Centro units often renting faster.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Cabo San Lucas.
Which upcoming projects could boost rents and rental yields in Cabo San Lucas as of 2026?
As of early 2026, factors expected to boost rents include continued tourism infrastructure investment, new condo deliveries upgrading rental stock in El Tezal, and strong hotel occupancy supporting higher furnished rental prices near lifestyle nodes.
Neighborhoods likely to benefit most are El Tezal (new supply attracts upgrading renters), Centro edges (improved services), and Corridor-adjacent access points gaining from tourism spillover.
Investors might expect rent increases of 5% to 10% over 1 to 2 years in neighborhoods benefiting from infrastructure improvements or new amenity-rich buildings.
You'll find our latest property market analysis about Cabo San Lucas here.
Get fresh and reliable information about the market in Cabo San Lucas
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What property type should I buy for renting in Cabo San Lucas as of 2026?
Between studios and larger units in Cabo San Lucas, which performs best in 2026?
As of early 2026, one-bedroom and compact two-bedroom units perform best in Cabo San Lucas for both yield and occupancy, outperforming studios and large luxury units.
Studios typically yield 5% to 6% gross, while compact apartments often reach 6% to 7% gross (roughly MXN 18,000 to 35,000 monthly, or USD 900 to 1,750, or EUR 850 to 1,650).
Mid-sized units outperform because studios are often resort-positioned with inflated prices, while compact apartments hit the affordability sweet spot for both buyers and renters.
However, studios can be better if targeting budget-conscious digital nomads who prioritize low rent over space, especially in high-turnover areas like Centro.
What property types are in most demand in Cabo San Lucas as of 2026?
As of early 2026, the most in-demand rental property type in Cabo San Lucas is the turnkey furnished condo, particularly one-bedroom and two-bedroom units in safe, convenient neighborhoods.
Top three by demand: first, furnished condos (1-2 bedrooms); second, family-friendly townhomes (2-3 bedrooms) in practical gated communities; third, executive-style furnished apartments for seasonal residents.
This demand is driven by remote workers, seasonal residents, and service industry professionals wanting move-in-ready housing without furnishing hassles.
One underperforming type likely to stay weak is the unfurnished luxury villa, as the tenant pool willing to pay premium rents and furnish their own place is very small in tourism-driven Cabo San Lucas.
What unit size has the best yield per m² in Cabo San Lucas as of 2026?
As of early 2026, units between 50 and 90 square meters deliver the best gross rental yield per square meter in Cabo San Lucas, typically one-bedroom or compact two-bedroom condos.
For this optimal size, monthly rents run around MXN 350 to 450 per square meter (roughly USD 17 to 22 or EUR 16 to 21 per square meter), producing stronger overall returns than larger units.
Smaller and larger units have lower yield per square meter because rent doesn't scale with size at the top end, and very small studios often carry resort-level pricing that compresses returns.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Cabo San Lucas.
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 Cabo San Lucas as of 2026?
What are typical property taxes and recurring local fees in Cabo San Lucas as of 2026?
As of early 2026, annual property tax (predial) for a typical Cabo San Lucas rental apartment is relatively low, usually MXN 3,000 to 15,000 per year (roughly USD 150 to 750 or EUR 140 to 700).
Beyond predial, landlords must budget for HOA fees of MXN 2,000 to 8,000 monthly (USD 100 to 400 or EUR 95 to 375), and foreign buyers in the restricted zone pay an annual fideicomiso bank trust fee of around USD 500 to 700.
In total, these taxes and fees typically represent 1.6% to 3% of gross rental income, with HOA fees doing most of the heavy lifting in amenity-heavy buildings.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Cabo San Lucas.
What insurance, maintenance, and annual repair costs should landlords budget in Cabo San Lucas right now?
Annual landlord insurance in Cabo San Lucas ranges from 0.15% to 0.35% of property value, meaning roughly MXN 9,000 to 21,000 per year (USD 450 to 1,050 or EUR 420 to 980) for a MXN 6,000,000 condo.
Recommended annual maintenance budget is 0.75% to 1.5% of property value because salt air, high AC usage, and pools drive repair needs higher than in inland cities.
The expense that most commonly surprises Cabo San Lucas landlords is AC replacement or major servicing, costing MXN 15,000 to 50,000 (USD 750 to 2,500 or EUR 700 to 2,350) and typically failing during peak summer heat.
Total annual budget for insurance, maintenance, and repairs: MXN 55,000 to 110,000 (USD 2,750 to 5,500 or EUR 2,600 to 5,150) for a typical rental property.
Which utilities do landlords typically pay, and what do they cost in Cabo San Lucas right now?
In Cabo San Lucas, tenants typically pay electricity directly (especially given high AC usage), while landlords may cover water depending on building setup, and often include internet in furnished executive rentals.
When landlords cover utilities, monthly costs range from MXN 2,300 to 7,700 (USD 115 to 385 or EUR 110 to 360): electricity MXN 1,500 to 5,000, water MXN 300 to 1,500, internet MXN 500 to 1,200.
What does full-service property management cost, including leasing, in Cabo San Lucas as of 2026?
As of early 2026, monthly property management fees in Cabo San Lucas run 8% to 12% of rent, meaning MXN 2,000 to 3,000 monthly (USD 100 to 150 or EUR 95 to 140) for a MXN 25,000 rental.
On top of ongoing management, leasing fees are typically one month of rent for a 12-month lease, covering advertising, showings, screening, and lease preparation.
What's a realistic vacancy buffer in Cabo San Lucas as of 2026?
As of early 2026, landlords in Cabo San Lucas should set aside approximately 6% of annual rental income as vacancy buffer, or 10% when targeting luxury tenants with a thin renter pool.
This translates to 3 to 4 weeks vacancy per year for well-priced rentals, with luxury properties potentially sitting empty 5 to 6 weeks annually.
Buying real estate in Cabo San Lucas can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Cabo San Lucas, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| INEGI | Mexico's official statistics agency and reference point for inflation benchmarks. | We used INEGI as the official backdrop for Mexico-wide inflation context. We use it to sanity-check whether Cabo San Lucas rent growth assumptions are plausible. |
| SHF | Federal institution with one of Mexico's most-cited official housing price indices. | We used SHF to anchor price trends in Mexico and Baja California Sur. We use it to avoid overreacting to individual luxury deals in Cabo San Lucas. |
| AirDNA | Widely used private dataset for Airbnb/Vrbo performance with clear STR methodology. | We used AirDNA to triangulate demand, seasonality, and vacancy risk. We use it as a reality check against long-term rental assumptions. |
| FITURCA | Official tourism observatory with hard hotel, ADR, and occupancy signals. | We used it to validate that Los Cabos demand is tourism-led and seasonal. We use it to explain why yields behave differently than in typical Mexican cities. |
| Los Cabos Municipal Government | Direct municipal communication about local property tax system for 2026. | We used it to ground local tax discussion in official 2026 information. We use it to avoid generic Mexico tax talk. |
| Los Cabos Treasury Portal | Municipality's own treasury site describing local tax administration. | We used it to confirm which local taxes exist in practice. We use it to support the net-yield cost checklist. |
| S&W Law | Law-firm note referencing official decree on acquisition tax changes. | We used it to quantify ISABI when discussing acquisition costs. We use it to avoid rumor-level tax numbers. |
| H. Congreso de BCS | State congress publishing the municipality's fiscal year revenue framework. | We used it to verify the 2026 municipal revenue law exists. We use it as a credibility anchor for cost estimates. |
| OOMSAPAS Los Cabos | Official municipal water utility for Los Cabos. | We used it to ground utilities discussion in the correct local operator. We use it to flag water's importance in Cabo budgeting. |
| OOMSAPAS Tariff Calculator | Official utility tool for calculating water charges. | We used it as the source of truth for water tariff structure. We use it to translate utilities into budget line items. |
| CENACE / CFE Tariffs | Official document referencing CFE distribution tariffs. | We used it to cite official electricity pricing. We use it to justify budget ranges rather than guesses. |
| Properstar | Large listing aggregator with consistent price-per-square-meter snapshots. | We used it for price triangulation in late 2025/early 2026. We use it to convert unit prices into yield math. |
| Vivanuncios | Major classifieds marketplace with structured price guide for sales and rentals. | We used it for rent and price triangulation. We use it to keep estimates grounded in visible inventory. |
| Cabo Real Estate Services | Structured market report summarizing sales, inventory, and supply timing. | We used it to contextualize supply affecting rents and vacancy. We use it to explain why some segments may see softer yields. |
| Baselane | Transparent property management fee benchmark resource. | We used it for general management fee ranges. We validated that hands-off management is standard in Los Cabos. |
Get the full checklist for your due diligence in Cabo San Lucas
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.