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 thinking about buying an apartment in Cabo San Lucas and renting it out, you're probably wondering what kind of returns you can realistically expect.
This guide breaks down the actual rental yields, neighborhood differences, and costs that will affect your bottom line as a property investor in Cabo San Lucas in 2026.
We constantly update this blog post to reflect the latest market data and trends.
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.
What rental yields can I realistically get from an apartment in Cabo San Lucas?
What's the average gross rental yield for apartments in Cabo San Lucas as of 2026?
As of early 2026, the average gross rental yield for apartments in Cabo San Lucas ranges from about 3.5% to 5.5% for long-term rentals, and from 6.5% to 10.5% for short-term vacation rentals.
Most apartment investors in Cabo San Lucas can realistically expect gross yields between 4% and 8%, depending heavily on whether they choose the long-term or short-term rental strategy.
The biggest factor causing yield variations in Cabo San Lucas is the split between tourist-driven short-term rental income (which is seasonal and concentrated around peak travel months like December through April) versus more stable but lower long-term rents from expats and local professionals.
Compared to other major Mexican resort cities like Puerto Vallarta or Playa del Carmen, Cabo San Lucas offers similar gross yields, though Cabo's higher average property prices (median condo around $450,000 USD) mean you need strong rental income to hit the same percentage returns.
What's the average net rental yield for apartments in Cabo San Lucas as of 2026?
As of early 2026, the average net rental yield for apartments in Cabo San Lucas is around 2% to 3.5% for long-term rentals and 3% to 6.5% for short-term rentals, after accounting for all operating costs.
Most apartment investors in Cabo San Lucas should realistically budget for net yields that are 2 to 4 percentage points lower than their gross yields, with short-term rentals losing more to operating expenses than long-term leases.
The single biggest expense that reduces gross yield to net yield in Cabo San Lucas is the HOA (homeowners association) fee, which is unusually high in this market because most condo buildings include pools, security, landscaping, and beachfront or resort-style amenities that require constant upkeep in the coastal climate.
By the way, you will find much more detailed data in our property pack covering the real estate market in Cabo San Lucas.
What's the typical rent-to-price ratio for apartments in Cabo San Lucas in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Cabo San Lucas is around 0.30% to 0.45% per month for long-term rentals and 0.55% to 0.90% per month (averaged annually) for short-term rentals.
Most apartment transactions in Cabo San Lucas fall within a rent-to-price ratio of 0.35% to 0.70% monthly, meaning a $450,000 USD condo typically generates between $1,575 and $3,150 in monthly rental income depending on strategy.
Apartments in neighborhoods like El Tezal and Centro tend to have the highest rent-to-price ratios in Cabo San Lucas because purchase prices are more reasonable while rental demand from expats and remote workers remains strong, unlike beachfront areas where prices run ahead of achievable rents.
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How much rent can I charge for an apartment in Cabo San Lucas?
What's the typical tenant budget range for apartments in Cabo San Lucas right now?
The typical monthly tenant budget for renting an apartment in Cabo San Lucas ranges from about MXN 16,000 to MXN 54,000 (approximately $900 to $3,000 USD, or €830 to €2,760 EUR) depending on location and apartment size.
Tenants targeting mid-range apartments in Cabo San Lucas typically budget between MXN 23,000 and MXN 40,000 per month (around $1,300 to $2,200 USD, or €1,200 to €2,030 EUR), which gets them a well-maintained unit in neighborhoods like El Tezal or parts of Centro with good amenities.
Tenants seeking high-end or luxury apartments in Cabo San Lucas budget MXN 40,000 to MXN 80,000+ per month (roughly $2,200 to $4,500+ USD, or €2,030 to €4,140+ EUR), targeting Marina-adjacent buildings, Medano Beach condos, or gated communities in Pedregal with ocean views and resort-style amenities.
We have a blog article where we update the latest data about rents in Cabo San Lucas here.
What's the average monthly rent for a 1-bed apartment in Cabo San Lucas as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment in Cabo San Lucas is around MXN 27,000 to MXN 34,000 (approximately $1,500 to $1,900 USD, or €1,380 to €1,750 EUR).
Entry-level 1-bed apartments in Cabo San Lucas rent for about MXN 16,000 to MXN 22,000 per month ($900 to $1,200 USD, or €830 to €1,100 EUR), and these are typically older buildings inland or basic units without resort amenities, often in areas like the outskirts of Centro.
Mid-range 1-bed apartments in Cabo San Lucas rent for around MXN 22,000 to MXN 32,000 per month ($1,200 to $1,800 USD, or €1,100 to €1,660 EUR), usually featuring air conditioning, gated access, a shared pool, and good internet in neighborhoods like El Tezal.
High-end 1-bed apartments in Cabo San Lucas rent for MXN 32,000 to MXN 45,000+ per month ($1,800 to $2,500+ USD, or €1,660 to €2,300+ EUR), typically located in Marina-area buildings or Medano Beach condos with ocean views, concierge services, and premium finishes.
What's the average monthly rent for a 2-bed apartment in Cabo San Lucas as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment in Cabo San Lucas is around MXN 31,000 to MXN 52,000 (approximately $1,700 to $2,900 USD, or €1,570 to €2,670 EUR).
Entry-level 2-bed apartments in Cabo San Lucas rent for about MXN 22,000 to MXN 31,000 per month ($1,200 to $1,700 USD, or €1,100 to €1,570 EUR), typically in inland locations or older buildings without premium amenities, often suitable for families or roommates on a budget.
Mid-range 2-bed apartments in Cabo San Lucas rent for around MXN 31,000 to MXN 45,000 per month ($1,700 to $2,500 USD, or €1,570 to €2,300 EUR), usually in well-maintained gated communities in El Tezal or Cabo Bello with pools, parking, and reliable utilities.
High-end 2-bed apartments in Cabo San Lucas rent for MXN 45,000 to MXN 72,000+ per month ($2,500 to $4,000+ USD, or €2,300 to €3,680+ EUR), located in Marina-front buildings, Medano Beach complexes, or Pedregal developments with resort amenities and ocean views.
What's the average monthly rent for a 3-bed apartment in Cabo San Lucas as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment in Cabo San Lucas is around MXN 47,000 to MXN 81,000 (approximately $2,600 to $4,500 USD, or €2,400 to €4,140 EUR).
Entry-level 3-bed apartments in Cabo San Lucas rent for about MXN 36,000 to MXN 47,000 per month ($2,000 to $2,600 USD, or €1,840 to €2,400 EUR), often in inland neighborhoods or older buildings, suitable for larger families or groups who prioritize space over luxury.
Mid-range 3-bed apartments in Cabo San Lucas rent for around MXN 47,000 to MXN 63,000 per month ($2,600 to $3,500 USD, or €2,400 to €3,220 EUR), typically in gated communities with good amenities in El Tezal or along the Corridor, appealing to families or remote workers needing home office space.
High-end 3-bed apartments in Cabo San Lucas rent for MXN 63,000 to MXN 90,000+ per month ($3,500 to $5,000+ USD, or €3,220 to €4,600+ EUR), found in premium Marina-area buildings, Pedregal, or beachfront complexes with full resort services, often competing with villa rentals at this price point.
How fast do well-priced apartments get rented in Cabo San Lucas?
A well-priced apartment in Cabo San Lucas typically gets rented within 2 to 6 weeks for long-term leases, though overpriced or poorly positioned units can sit on the market for 2 to 4 months or longer.
The typical vacancy rate for apartments in Cabo San Lucas hovers around 5% to 10% annually for long-term rentals, though short-term vacation rentals see much higher vacancy due to seasonality, with AirDNA reporting average occupancy around 45% across the market.
The main factors that cause some apartments to rent faster than others in Cabo San Lucas are proximity to the Marina or Medano Beach, the presence of reliable air conditioning and fast internet (essential for remote workers), and whether the building's HOA allows rentals at all, since some condo communities restrict short-term guests.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost 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.
Which apartment type gives the best yield in Cabo San Lucas?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Cabo San Lucas as of 2026?
As of early 2026, 1-bed and efficient 2-bed apartments typically offer the best rental yields in Cabo San Lucas because they balance strong tenant demand with manageable purchase prices and HOA costs.
Studios in Cabo San Lucas can yield around 5% to 7% gross but have niche demand; 1-beds tend to hit 4.5% to 7% gross; 2-beds range from 4% to 6.5% gross; and 3-beds often compress to 3.5% to 5.5% gross because their higher prices outpace achievable rents.
The main reason 1-bed and smaller 2-bed apartments outperform larger units in Cabo San Lucas is that the local tenant pool is dominated by remote workers, couples, and seasonal residents who value location and amenities over extra bedrooms, while 3-bed renters are thinner on the ground and often prefer standalone villas instead.
Which features are best if you want a good yield for your apartment in Cabo San Lucas?
The features that most positively impact rental yield in Cabo San Lucas are reliable air conditioning (Cabo's heat makes this non-negotiable), strong internet for remote workers, gated building access with parking, and walkability to either Marina or Medano Beach.
Higher floors in Cabo San Lucas condos generally rent faster and command premiums of 5% to 15% because they offer better ocean views and breezes, which matter enormously in a destination where scenery is the main draw.
Apartments with balconies or outdoor terraces in Cabo San Lucas do rent faster and can justify 10% to 20% higher rents, particularly for short-term vacation rentals where guests expect to enjoy the weather and views.
Building features like elevators, on-site security, pools, and covered parking do raise rents enough to offset higher HOA fees in most Cabo San Lucas buildings, but owners should verify the exact HOA amount before buying since some luxury buildings charge $500 to $1,000+ monthly in fees that can eat into net yield.
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Which neighborhoods give the best rental demand for apartments in Cabo San Lucas?
Which neighborhoods have the highest rental demand for apartments in Cabo San Lucas as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for apartments in Cabo San Lucas are El Tezal, the Marina area, Medano Beach (Playa El Médano), and Pedregal, each attracting different tenant profiles.
The main demand driver making these neighborhoods attractive is that El Tezal offers affordable newer construction popular with expats and remote workers, the Marina provides walkability to restaurants and nightlife, Medano Beach is the prime tourist magnet for short-term rentals, and Pedregal delivers luxury and security for premium long-term tenants.
In these high-demand Cabo San Lucas neighborhoods, well-priced apartments typically rent within 2 to 4 weeks for long-term leases, with Marina and Medano Beach vacation rentals seeing the strongest booking rates during peak season from December through April.
One emerging neighborhood gaining rental demand momentum in Cabo San Lucas is Cabo Bello, which sits along the Corridor and offers newer developments at more accessible prices while still providing good access to beaches and amenities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Cabo San Lucas.
Which neighborhoods have the highest yields for apartments in Cabo San Lucas as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for apartments in Cabo San Lucas are El Tezal, Centro (downtown), and select areas of Cabo Bello, where purchase prices remain reasonable relative to achievable rents.
In these top-yielding Cabo San Lucas neighborhoods, investors can realistically expect gross yields of 5% to 8% for long-term rentals and 7% to 11% for well-managed short-term rentals, compared to 3.5% to 6% in pricier beachfront areas.
The main reason these neighborhoods offer higher yields than Marina, Medano, or Pedregal is that property prices per square meter haven't yet caught up to beachfront premiums, while tenant demand from expats, families, and service-industry workers keeps rents stable and vacancy low.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Mexico. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Should I do long-term rental or short-term rental in Cabo San Lucas?
Is short-term rental legal for apartments in Cabo San Lucas as of 2026?
As of early 2026, short-term rentals are generally legal and widely operated in Cabo San Lucas, with no major municipal restrictions banning vacation rentals, though owners must comply with tax and registration requirements.
The main legal requirements for operating a short-term rental apartment in Cabo San Lucas include registering with Mexico's tax authority (SAT) for platform income withholding, complying with municipal fiscal rules, and ensuring your condo's HOA bylaws actually permit short-term guests.
There is no formal Airbnb-specific licensing requirement in Cabo San Lucas as of early 2026, but owners should expect SAT to withhold income tax (ISR) and value-added tax (IVA) on platform bookings, and should verify any local registration or lodging fees that may apply.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Cabo San Lucas.
What's the gross yield difference short-term vs long-term in Cabo San Lucas in 2026?
As of early 2026, short-term rentals in Cabo San Lucas typically generate 2 to 5 percentage points higher gross yields than long-term rentals, with STR gross yields around 6.5% to 10.5% compared to 3.5% to 5.5% for long-term leases.
The typical gross yield range for short-term vacation rentals in Cabo San Lucas is 6.5% to 10.5% annually, while long-term rentals typically yield 3.5% to 5.5% gross, though net yields compress significantly for STR due to higher operating costs.
The main additional costs that reduce the net yield advantage of short-term rentals in Cabo San Lucas include management fees (typically 20% to 35% of revenue), cleaning and turnover costs, utilities paid by the owner, platform commissions, and SAT tax withholding on platform income.
To outperform a long-term rental's net yield in Cabo San Lucas, a short-term rental typically needs to achieve at least 50% to 55% occupancy, which is above the market-wide average of around 45% reported by AirDNA, meaning only well-located and well-managed properties consistently beat long-term returns.
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What costs will eat into my net yield for an apartment in Cabo San Lucas?
What are building service charges as a % of rent in Cabo San Lucas as of 2026?
As of early 2026, typical building service charges (HOA fees) in Cabo San Lucas represent about 15% to 35% of monthly rent for long-term rentals, translating to roughly MXN 3,600 to MXN 18,000 ($200 to $1,000 USD, or €185 to €920 EUR) per month depending on the building.
The realistic range of HOA fees in Cabo San Lucas covers most apartments at MXN 1,800 to MXN 18,000 monthly ($100 to $1,000 USD, or €92 to €920 EUR), with basic buildings at the low end and full-service resort-style complexes at the high end.
Services that justify higher-than-average HOA fees in Cabo San Lucas typically include 24-hour security guards, multiple pools, beachfront maintenance, on-site property management, backup generators, and water treatment systems, all of which are common in the area's coastal climate where salt air and hurricanes accelerate wear on buildings.
What annual maintenance budget should I assume for an apartment in Cabo San Lucas right now?
Apartment owners in Cabo San Lucas should budget approximately MXN 65,000 to MXN 120,000 per year ($3,600 to $6,750 USD, or €3,310 to €6,210 EUR) for maintenance on a median-priced condo, which works out to roughly 0.8% to 1.5% of property value annually.
The realistic range of annual maintenance costs in Cabo San Lucas spans from MXN 36,000 to MXN 180,000 ($2,000 to $10,000 USD, or €1,840 to €9,200 EUR), with newer buildings requiring less and older or oceanfront properties needing more frequent repairs.
The most common maintenance expenses apartment owners face annually in Cabo San Lucas are air conditioning servicing and replacement (critical in the desert heat), corrosion control and repainting due to salt air exposure, appliance repairs accelerated by humidity, and occasional storm damage repairs during hurricane season from June through November.
What property taxes should I expect for an apartment in Cabo San Lucas as of 2026?
As of early 2026, the typical annual property tax (called "predial") for an apartment in Cabo San Lucas is only about 0.1% of the assessed value, meaning a condo assessed at MXN 8,000,000 ($450,000 USD) would owe roughly MXN 8,000 to MXN 10,000 ($450 to $560 USD, or €415 to €515 EUR) per year.
The realistic range of property taxes in Cabo San Lucas spans from MXN 5,000 to MXN 25,000 annually ($280 to $1,400 USD, or €260 to €1,290 EUR), depending on the property's assessed value and whether it's a modest inland unit or a premium beachfront condo.
Property taxes in Cabo San Lucas are calculated by the municipal Tesorería based on the cadastral (assessed) value recorded at purchase, which typically runs 60% to 80% of actual market value, then multiplied by the standard 0.1% rate.
There are property tax discounts available in Cabo San Lucas: paying in January earns a 20% discount, February gets 15% off, March gets 10% off, and seniors over 60 who are permanent residents may qualify for up to 50% reduction through Mexico's INAPAM program.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Cabo San Lucas.
How much does landlord insurance cost for an apartment in Cabo San Lucas in 2026?
As of early 2026, typical annual landlord insurance for an apartment in Cabo San Lucas costs around MXN 9,000 to MXN 27,000 ($500 to $1,500 USD, or €460 to €1,380 EUR), covering structure, contents, liability, and basic hurricane protection.
The realistic range of annual landlord insurance costs in Cabo San Lucas spans from MXN 5,400 to MXN 45,000 ($300 to $2,500 USD, or €276 to €2,300 EUR), with basic coverage at the low end and comprehensive hurricane and flood policies for oceanfront properties at the high end.
What's the typical property management fee for apartments in Cabo San Lucas as of 2026?
As of early 2026, the typical property management fee for apartments in Cabo San Lucas is around 8% to 12% of collected rent for long-term rentals and 20% to 35% of gross booking revenue for short-term vacation rentals.
The realistic range of property management fees in Cabo San Lucas spans from 8% to 35%, which translates to roughly MXN 2,200 to MXN 12,000 monthly ($120 to $670 USD, or €110 to €615 EUR) for a typical long-term rental, and significantly more for high-revenue STR properties.
Standard property management fees in Cabo San Lucas typically include tenant finding and screening, rent collection, routine maintenance coordination, and emergency response, while STR management adds guest communication, check-in coordination, cleaning oversight, and listing optimization.
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 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 |
|---|---|---|
| Cabo Real Estate Services (BCS MLS) Q4 2025 Report | Built from verified MLS transaction data, one of the most reliable price sources. | We used it to anchor median condo purchase prices and days-on-market statistics. We then paired these prices with rent data to calculate yields. |
| AirDNA Cabo San Lucas Market Overview | Industry-standard analytics for Airbnb and Vrbo performance with transparent metrics. | We used it to estimate short-term rental gross income, occupancy rates, and average daily rates. We compared STR revenue to purchase prices to calculate vacation rental yields. |
| FITURCA Los Cabos Tourism Observatory | Official tourism body tracking visitor demand and lodging activity. | We used it to validate that tourism demand supports short-term rental income. We also used it to understand seasonality patterns affecting occupancy. |
| SAT (Mexico Tax Authority) Platform Guidance | Official government source explaining platform income tax treatment. | We used it to understand what taxes reduce net yield for STR operators. We also used it to explain compliance requirements for foreign owners. |
| Tesorería Municipal Los Cabos Revenue Law | Primary legal document defining local taxes and municipal charges. | We used it to identify municipal-level costs affecting property ownership. We incorporated these into our net yield calculations. |
| Tesorería Municipal Predial Rate Document | Official municipal document stating property tax rate structure. | We used it to estimate realistic property tax costs as a percentage of value. We explained why effective rates are low compared to US properties. |
| Los Cabos Municipal Government 2026 Predial Notice | Current-year official communication on tax payment rules and discounts. | We used it to confirm 2026 property tax timing and early payment discounts. We included it as practical guidance for property owners. |
| SHF Housing Price Index (Government of Mexico) | Federal housing finance agency's canonical reference for Mexico price trends. | We used it to frame Cabo within Mexico's broader housing cycle. We cross-checked private price narratives against official index data. |
| INEGI (Mexico Statistics Office) | National statistics agency and reference source for inflation and economic data. | We used it to ground assumptions about inflation and household affordability. We validated rent growth expectations against economic fundamentals. |
| AXA México Home Insurance | Major insurer showing standard home coverage availability in Mexico. | We used it to confirm landlord insurance is readily available. We translated policy costs into realistic annual expense estimates. |
| GNP Seguros Home Insurance | One of Mexico's largest insurers offering homeowner policies. | We used it to validate insurance coverage options for landlords. We incorporated insurance into net yield calculations as a recurring cost. |
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