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
Cabo San Lucas is not your typical rental market because condo prices and rents are heavily influenced by tourism rather than just local demand.
This means your rental yield will depend a lot on whether you go for a long-term tenant or try to capture vacation rental income through platforms like Airbnb.
We constantly update this blog post to reflect the latest data, so you can trust the numbers you see here.
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 a condo in Cabo San Lucas?
What's the average gross rental yield for condos in Cabo San Lucas as of 2026?
As of early 2026, the average gross rental yield for condos in Cabo San Lucas sits around 5.5% for long-term rentals, which is solid compared to many beach destinations.
That said, the realistic range spans from about 4.5% to 7.0%, so there is room to do better or worse depending on what you buy.
The biggest factor that moves your yield in Cabo San Lucas is whether your building has high HOA fees for resort-style amenities, because those fees can eat into your returns even if rents look attractive on paper.
Compared to other Mexican cities, Cabo San Lucas gross yields are slightly lower than places like Merida or Guadalajara, but the tourism-driven demand makes occupancy more reliable for well-located units.
What's the average net rental yield for condos in Cabo San Lucas as of 2026?
As of early 2026, the average net rental yield for condos in Cabo San Lucas falls between 3.5% and 5.0% after you account for all the usual ownership costs.
Most condo investors in Cabo San Lucas can realistically expect net yields in the 3.5% to 4.5% range, with better performers hitting closer to 5% if they buy wisely and keep costs lean.
The single biggest expense that kills your net yield in Cabo San Lucas is actually the combination of HOA fees and property management, because the salt air and resort-style buildings require constant upkeep that adds up fast.
By the way, we have much more granular data about rental yields in our property pack about Cabo San Lucas.
What's the typical rent-to-price ratio for condos in Cabo San Lucas in 2026?
As of early 2026, the typical rent-to-price ratio for condos in Cabo San Lucas ranges from 0.38% to 0.58% per month, which translates directly into that 4.5% to 7.0% annual gross yield range.
Most condo transactions in Cabo San Lucas fall somewhere in the middle of that range, around 0.45% to 0.50% monthly, depending on the specific building and location.
The highest rent-to-price ratios in Cabo San Lucas tend to show up in neighborhoods like Portales, 4 de Marzo, and Brisas del Pacifico, where purchase prices are more moderate but rents stay supported by steady local demand.
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How much rent can I charge for a condo in Cabo San Lucas?
What's the typical tenant budget range for condos in Cabo San Lucas right now?
The typical monthly tenant budget for renting a condo in Cabo San Lucas in early 2026 ranges from MXN 15,000 to MXN 40,000, which is roughly USD 860 to USD 2,285 or EUR 790 to EUR 2,100.
For entry-level condos in Cabo San Lucas, tenants usually budget between MXN 15,000 and MXN 20,000 per month, around USD 860 to USD 1,140 or EUR 790 to EUR 1,050.
Mid-range condo tenants in Cabo San Lucas typically spend MXN 25,000 to MXN 40,000 monthly, which comes out to USD 1,430 to USD 2,285 or EUR 1,315 to EUR 2,100.
For high-end or luxury condos in Cabo San Lucas, tenant budgets jump to MXN 40,000 to MXN 80,000 or more per month, meaning USD 2,285 to USD 4,570 or EUR 2,100 to EUR 4,200.
You can also check our latest update about rents in Cabo San Lucas here.
What's the average monthly rent for a 1-bed condo in Cabo San Lucas as of 2026?
As of early 2026, the average monthly rent for a 1-bed condo in Cabo San Lucas is approximately MXN 20,000, which equals about USD 1,145 or EUR 1,050.
At the entry level, a decent 1-bed condo in Cabo San Lucas rents for MXN 16,000 to MXN 18,000 per month (USD 915 to USD 1,030 or EUR 840 to EUR 945), and these units are typically found in neighborhoods like Portales or 4 de Marzo with basic finishes and no beach access.
A typical mid-range 1-bed condo in Cabo San Lucas commands MXN 18,000 to MXN 22,000 monthly (USD 1,030 to USD 1,260 or EUR 945 to EUR 1,155), usually located in areas like El Tezal or Centro with modern kitchens and secure parking.
For a luxury 1-bed condo in Cabo San Lucas, expect to charge MXN 22,000 to MXN 24,000 or more per month (USD 1,260 to USD 1,375 or EUR 1,155 to EUR 1,260), typically in buildings near El Medano beach with pools, ocean views, and resort amenities.
What's the average monthly rent for a 2-bed condo in Cabo San Lucas as of 2026?
As of early 2026, the average monthly rent for a 2-bed condo in Cabo San Lucas is around MXN 28,000, which translates to approximately USD 1,600 or EUR 1,470.
An entry-level 2-bed condo in Cabo San Lucas rents for MXN 22,000 to MXN 25,000 per month (USD 1,260 to USD 1,430 or EUR 1,155 to EUR 1,315), typically in inland neighborhoods like Portales with functional but simple finishes and street parking.
A mid-range 2-bed condo in Cabo San Lucas goes for MXN 25,000 to MXN 32,000 monthly (USD 1,430 to USD 1,830 or EUR 1,315 to EUR 1,680), usually in El Tezal or Centro with air conditioning, a balcony, and access to a community pool.
High-end 2-bed condos in Cabo San Lucas command MXN 32,000 to MXN 35,000 or more per month (USD 1,830 to USD 2,000 or EUR 1,680 to EUR 1,840), often in El Medano or Cabo Bello with ocean views, high-end appliances, and full resort facilities.
What's the average monthly rent for a 3-bed condo in Cabo San Lucas as of 2026?
As of early 2026, the average monthly rent for a 3-bed condo in Cabo San Lucas is approximately MXN 45,000, which equals about USD 2,570 or EUR 2,360.
Entry-level 3-bed condos in Cabo San Lucas rent for MXN 35,000 to MXN 40,000 per month (USD 2,000 to USD 2,285 or EUR 1,840 to EUR 2,100), often located in secondary neighborhoods with basic amenities and suited for families on a budget.
A typical mid-range 3-bed condo in Cabo San Lucas commands MXN 40,000 to MXN 50,000 monthly (USD 2,285 to USD 2,860 or EUR 2,100 to EUR 2,625), usually in well-maintained buildings in El Tezal or Centro with multiple bathrooms and secure parking.
Luxury 3-bed condos in Cabo San Lucas go for MXN 50,000 to MXN 55,000 or more per month (USD 2,860 to USD 3,140 or EUR 2,625 to EUR 2,885), typically in prime locations near El Medano with premium finishes, concierge services, and direct beach access.
How fast do well-priced condos get rented in Cabo San Lucas?
A well-priced condo in Cabo San Lucas typically finds a long-term tenant within 2 to 6 weeks, while overpriced or poorly located units can sit on the market for 2 to 4 months.
The typical vacancy rate for long-term rental condos in Cabo San Lucas is around 6% to 10%, meaning you should budget for roughly 3 to 5 weeks of vacancy per year.
The main factors that help condos rent faster in Cabo San Lucas are reliable air conditioning, fast internet for remote workers, and secure parking, because the tenant pool here includes many digital nomads and seasonal residents who prioritize comfort and connectivity.
And if you want to know what should be the right price, check our latest update on how much a condo 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 condo type gives the best yield in Cabo San Lucas?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed condos in Cabo San Lucas as of 2026?
As of early 2026, 1-bed and compact 2-bed condos typically offer the best rental yields in Cabo San Lucas, with 1-beds often edging ahead if HOA fees are reasonable.
Studios in Cabo San Lucas can yield 5.5% to 7.0% gross but have limited liquidity, 1-beds typically hit 5.5% to 7.0%, 2-beds range from 5.0% to 6.5%, and 3-beds often compress to 4.5% to 5.5% because prices rise faster than rents.
The main reason 1-beds outperform in Cabo San Lucas is that the tenant pool is dominated by couples, seasonal residents, and remote workers who want easy living with amenities, not extra bedrooms they will not use.
Which amenities are best if you want a good yield for your condo in Cabo San Lucas?
The amenities that most positively impact rental yield in Cabo San Lucas are reliable air conditioning with modern electrical systems, fast and stable internet, and secure gated parking, because these are non-negotiables for the remote workers and seasonal visitors who make up a large share of tenants.
Mid-floor units with elevator access tend to rent easiest in Cabo San Lucas because they offer the best balance of views and reduced street noise, while ground floors only work well if they feel private and secure.
Condos with balconies or terraces in Cabo San Lucas definitely rent faster and command higher rents, since outdoor living space is part of the lifestyle that draws people to this beach destination.
Pools can help justify slightly higher rents in Cabo San Lucas, especially for short-term rentals, but gyms rarely move the needle much, and the catch is that resort-style amenities often come with HOA fees that can erase your net yield advantage.
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Which neighborhoods give the best rental demand for condos in Cabo San Lucas?
Which condo neighborhoods have the highest rental demand in Cabo San Lucas as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for condos in Cabo San Lucas are El Medano, Cabo San Lucas Centro, and El Tezal, all of which benefit from either beach proximity or strong infrastructure.
The main demand driver in these neighborhoods is that El Medano offers walkable beach access for tourists, Centro provides services and nightlife for young professionals, and El Tezal has easy highway access plus proximity to Costco and other conveniences that attract longer-term renters.
Vacancy rates and time-to-rent in these high-demand Cabo San Lucas neighborhoods are notably better than the market average, with well-priced units often finding tenants in 2 to 4 weeks instead of the typical 6 weeks.
One emerging neighborhood gaining rental demand momentum in Cabo San Lucas is Brisas del Pacifico, where prices are still moderate but infrastructure improvements are drawing more local professionals and budget-conscious expats.
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 condo neighborhoods have the highest yields in Cabo San Lucas as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for condos in Cabo San Lucas are Portales, 4 de Marzo, and Brisas del Pacifico, all located slightly inland from the beach but still convenient.
Gross rental yields in these top-yielding Cabo San Lucas neighborhoods typically range from 6.0% to 7.0%, compared to the market average of around 5.5%.
The main reason these neighborhoods offer higher yields in Cabo San Lucas is that purchase prices are significantly lower than beachfront areas like El Medano or Cabo Bello, but rents do not drop proportionally because local workers and budget-conscious expats still need housing nearby.
We have a whole part covering all the neighborhoods in our pack about buying a property in Cabo San Lucas.
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 condos in Cabo San Lucas as of 2026?
As of early 2026, short-term rentals are widely practiced in Cabo San Lucas with thousands of active Airbnb and Vrbo listings, but legality depends on tax compliance and your specific building's rules.
The main legal requirements for operating a short-term rental condo in Cabo San Lucas include registering for federal tax withholding through the SAT platform system, paying the Baja California Sur state lodging tax, and potentially obtaining a municipal operating license depending on how your rental is structured.
There is no official registry of which Cabo San Lucas condo buildings allow Airbnb, so you must verify in writing with the HOA before buying, though buildings like Terrasol, Marina Sol, and Vista Vela have clear evidence of established short-term rental activity.
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 6 percentage points higher gross yields than long-term rentals, with STR gross yields ranging from 7% to 12% compared to 4.5% to 7.0% for long-term.
Long-term rental condos in Cabo San Lucas typically yield 5.5% gross on average, while short-term rentals can hit 8% to 12% gross based on AirDNA data showing average daily rates around USD 715 and annual revenues near USD 41,000.
The main additional costs that reduce the net yield advantage of short-term rentals in Cabo San Lucas are property management fees of 20% to 35% of revenue, higher turnover maintenance, platform commissions, and the state lodging tax that long-term landlords avoid.
To outperform a long-term rental in Cabo San Lucas, a short-term rental needs to achieve at least 40% to 50% occupancy, which is achievable given the market average sits around 45%, but anything below that and long-term often wins on net yield.
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What costs will destroy my net yield for a condo in Cabo San Lucas?
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.
What are condo HOA fees as a % of rent in Cabo San Lucas as of 2026?
As of early 2026, typical HOA fees for condos in Cabo San Lucas run between 10% and 25% of monthly rent, which translates to roughly MXN 3,500 to MXN 8,000 per month (USD 200 to USD 460 or EUR 185 to EUR 420).
The realistic range of HOA fees in Cabo San Lucas varies widely, with basic buildings charging 10% to 15% of rent and resort-style communities with pools, gyms, and 24-hour security easily hitting 20% to 25% or higher.
The amenities that justify higher-than-average HOA fees in Cabo San Lucas are beachfront common areas, infinity pools, on-site maintenance staff to handle the constant salt air corrosion on air conditioning units and metalwork, and security services that international buyers expect.
What annual maintenance budget should I assume for a condo in Cabo San Lucas right now?
Condo owners in Cabo San Lucas should budget between 0.7% and 1.2% of their property's value annually for maintenance, which works out to roughly MXN 50,000 to MXN 85,000 per year (USD 2,850 to USD 4,850 or EUR 2,620 to EUR 4,460) for a typical USD 400,000 condo.
The realistic range of annual maintenance costs in Cabo San Lucas depends heavily on condo age and condition, with newer units requiring closer to 0.7% and older buildings pushing toward 1.2% or more.
The most common maintenance expenses condo owners face in Cabo San Lucas are air conditioning repairs and replacements due to the brutal combination of heat and salt air, exterior paint and metalwork restoration, and elevator servicing in multi-story buildings where coastal humidity accelerates wear.
What property taxes should I expect for a condo in Cabo San Lucas as of 2026?
As of early 2026, annual property taxes for condos in Cabo San Lucas are relatively low, typically running between 0.2% and 0.4% of cadastral value, which often amounts to just MXN 5,000 to MXN 15,000 per year (USD 285 to USD 860 or EUR 260 to EUR 790) depending on your unit.
The realistic range of property taxes in Cabo San Lucas varies based on your condo's official cadastral value and its classification, with beachfront properties in higher-value zones paying more than inland units.
Property taxes in Cabo San Lucas, called "predial," are calculated as a mill rate applied to the cadastral value assigned by the municipality, which is typically well below actual market value, keeping the tax burden modest for most owners.
There are some property tax reductions available for condos in Cabo San Lucas, including early payment discounts that the municipal treasury offers at the beginning of each year, so it pays to check the deadlines.
How much does condo insurance cost in Cabo San Lucas in 2026?
As of early 2026, annual condo insurance in Cabo San Lucas typically costs between USD 600 and USD 2,000 (MXN 10,500 to MXN 35,000 or EUR 550 to EUR 1,840), with the wide range driven by hurricane coverage options and your unit's value.
The realistic range of annual condo insurance costs in Cabo San Lucas depends on coverage level and building location, with basic policies for inland units at the lower end and comprehensive hurricane coverage for beachfront condos pushing costs toward USD 1,500 to USD 2,000 or higher.
What's the typical property management fee for condos in Cabo San Lucas as of 2026?
As of early 2026, property management fees for long-term rental condos in Cabo San Lucas typically run 8% to 12% of collected rent, which works out to roughly MXN 2,000 to MXN 4,000 per month (USD 115 to USD 230 or EUR 105 to EUR 210) on a mid-range unit.
The realistic range of property management fees in Cabo San Lucas spans from 8% for basic long-term management up to 20% to 35% of gross revenue for full-service vacation rental management that handles bookings, cleaning, and guest communications.
Standard property management fees in Cabo San Lucas typically include tenant sourcing and screening, rent collection, basic maintenance coordination, and periodic property inspections, though cleaning, major repairs, and accounting services often cost extra.
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 |
|---|---|---|
| Banco de Mexico (Banxico) | Mexico's central bank and official reference for financial data. | We used Banxico to anchor all MXN to USD currency conversions throughout this article. We referenced their SIE database for consistent exchange rate data. |
| Diario Oficial de la Federacion | Mexico's official government gazette publishing daily indicators. | We used DOF as a cross-check for January 2026 exchange rates. We referenced their indicators to validate our USD and EUR conversions. |
| Propiedades.com | Major Mexican property portal with transparent listing methodology. | We used Propiedades to anchor baseline long-term rent levels and colonia-level averages. We also referenced their price data to calculate rent-to-price ratios and yield estimates. |
| Inmuebles24 | One of Mexico's largest listing sites with broad market coverage. | We used Inmuebles24 to verify that asking rents matched portal averages. We cross-checked bedroom-specific rent bands and listing absorption patterns. |
| AirDNA | Industry-standard short-term rental data based on actual bookings. | We used AirDNA to estimate STR occupancy, average daily rates, and annual revenue. We converted those figures into gross yield ranges for comparison with long-term rentals. |
| SAT Mexico | Mexico's official tax authority for platform income withholding rules. | We used SAT to explain federal tax obligations for rental income via platforms. We highlighted how these withholdings affect net STR yields. |
| Baja California Sur State Government | Official state portal for lodging tax procedures. | We used BCS state procedures to confirm that lodging tax applies to short-term rentals. We referenced this when comparing STR versus long-term rental tax burdens. |
| Los Cabos Municipal Treasury | Official municipal source for property tax rates and procedures. | We used the treasury's predial rate documents to estimate annual property taxes. We also referenced their licensing requirements for rental operations. |
| ProperSavvy | Cabo-focused property management resource with local expertise. | We used ProperSavvy to benchmark property management fees for both long-term and vacation rentals. We incorporated their fee ranges into our net yield calculations. |
| Aeropuertos GAP | Official operator of Los Cabos International Airport. | We used GAP traffic data as a demand-side indicator for the rental market. We referenced passenger volumes to explain why Cabo is unusually tourism-driven. |
| Guardian Insurance MX | Mexico-focused insurance provider with published cost guidance. | We used Guardian Insurance to estimate typical annual condo insurance costs. We adjusted their benchmarks for Cabo's coastal hurricane risk premiums. |
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