Authored by the expert who managed and guided the team behind the Dominican Republic Property Pack
Everything you need to know before buying real estate is included in our The Dominican Republic Property Pack
This blog post breaks down the rental yields you can realistically expect in the Dominican Republic in 2026, covering gross and net returns, neighborhood differences, property types, and the costs that eat into your profits.
We explain where yields are highest, where they fall short, and what drives these differences across Santo Domingo, Punta Cana, and the rest of the country.
We constantly update this blog post to reflect the latest data and 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 the Dominican Republic.
Insights
- Gross rental yields in the Dominican Republic average around 8% in early 2026, making it one of the stronger-performing Caribbean markets for buy-to-let investors.
- The gap between gross and net yields in the Dominican Republic typically ranges from 2 to 3 percentage points, largely driven by condo fees and vacancy, not property taxes.
- Studios and one-bedroom apartments in Santo Domingo and Punta Cana consistently deliver the highest yield per square meter compared to larger villas or houses.
- Census data shows roughly 720,000 vacant dwellings in the Dominican Republic, but actual rental vacancy for well-located properties runs closer to 5% to 10% annually.
- Premium neighborhoods like Piantini and Cap Cana often yield 6% to 7% gross because purchase prices outpace what tenants will pay in rent.
- The Dominican Republic's IPI property tax only kicks in above an exempt threshold of around 10 million Dominican pesos, meaning many smaller rental units pay nothing.
- Punta Cana's workforce housing areas like Verón and Bávaro deliver some of the country's best yields, supported by steady airport-driven job growth.
- Full-service property management in the Dominican Republic runs 8% to 12% of collected rent, a cost that matters more for remote investors in coastal markets.
- Santo Domingo's planned monorail project could shift rental demand toward western commuter corridors, creating new yield opportunities in currently overlooked areas.
What are the rental yields in the Dominican Republic as of 2026?
What's the average gross rental yield in the Dominican Republic as of 2026?
As of early 2026, the average gross rental yield across residential properties in the Dominican Republic sits around 8%, which is strong by Caribbean and Latin American standards.
Most typical investment properties in the Dominican Republic fall within a 7.5% to 8.5% gross yield range, depending on location and property type.
This puts the Dominican Republic ahead of many regional peers, where gross yields often hover closer to 5% or 6%, making it an attractive destination for income-focused investors.
The main factor driving these solid yields right now is the combination of relatively accessible purchase prices in key markets like Santo Domingo and Punta Cana, paired with strong and consistent rental demand from both local professionals and the tourism workforce.
What's the average net rental yield in the Dominican Republic as of 2026?
As of early 2026, the average net rental yield for residential properties in the Dominican Republic lands around 5% to 5.5%, once you account for all recurring ownership costs.
The typical gap between gross and net yields in the Dominican Republic runs about 2.5 to 3 percentage points, which is meaningful but manageable if you budget properly.
The expense that most significantly reduces gross yield to net yield in the Dominican Republic is usually condo or HOA fees in amenity-heavy buildings, followed closely by vacancy and turnover costs, rather than property taxes which many smaller units avoid entirely.
Most standard investment properties in the Dominican Republic realistically deliver net yields between 4.5% and 6%, with the range depending on how well you control management fees, vacancy, and whether your property sits in a high-fee building.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in the Dominican Republic.
We made this infographic to show you how property prices in the Dominican Republic 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 the Dominican Republic in 2026?
A gross rental yield of 8% or higher is generally considered "good" by investors in the Dominican Republic, while anything above 10% is excellent but worth scrutinizing for hidden risks or high fees.
The threshold that separates average-performing properties from high-performing ones in the Dominican Republic typically falls around that 8% gross mark, since the national average already sits near this level, meaning "good" needs to beat "typical" rather than just matching it.
How much do yields vary by neighborhood in the Dominican Republic as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in the Dominican Republic can reach 4 to 5 percentage points, ranging from around 6% in premium areas to over 10% in value-focused pockets.
Neighborhoods that deliver the highest rental yields in the Dominican Republic are typically working-class or service-corridor areas with strong tenant demand but moderate purchase prices, such as Evaristo Morales, Bella Vista, and Zona Universitaria in Santo Domingo, or Verón and Bávaro near Punta Cana.
The lowest yields tend to appear in prestige neighborhoods where buyers pay a lifestyle premium that rents simply cannot match, such as Piantini, Naco, and Serrallés in Santo Domingo, or the luxury enclave of Cap Cana on the East Coast.
The main reason yields vary so much across Dominican neighborhoods is that property prices swing far more dramatically between premium and mid-market areas than rents do, compressing returns in trophy locations.
By the way, we've written a blog article detailing what are the current best areas to invest in property in the Dominican Republic.
How much do yields vary by property type in the Dominican Republic as of 2026?
As of early 2026, gross rental yields across different property types in the Dominican Republic range from around 6% for large villas and houses up to 9% or more for studios and compact apartments.
Studios and one-bedroom apartments currently deliver the highest average gross rental yield in the Dominican Republic because their lower purchase prices generate strong rent-to-price ratios.
Large houses and villas typically deliver the lowest average gross rental yield in the Dominican Republic, since their high acquisition costs are rarely matched by proportionally higher rents.
The key reason yields differ between property types in the Dominican Republic is that rent per square meter decreases as unit size increases, while maintenance and condo fees can disproportionately affect larger properties or amenity-heavy buildings.
By the way, you might want to read the following:
What's the typical vacancy rate in the Dominican Republic as of 2026?
As of early 2026, the typical rental vacancy rate for well-located residential properties in the Dominican Republic runs between 5% and 10% annually, depending on whether you are in an urban core or a tourism-driven market.
Vacancy rates across different neighborhoods in the Dominican Republic range from around 5% to 8% in Santo Domingo's central districts up to 10% to 15% in seasonal coastal markets like Punta Cana and the North Coast.
The main factor driving vacancy rates in the Dominican Republic is whether the area has year-round employment demand or relies heavily on tourism, which creates seasonality and gap risk between tenants.
The Dominican Republic's rental vacancy rates are actually quite competitive regionally, though the national census figure of roughly 720,000 vacant dwellings sounds alarming until you realize it includes second homes, unfinished units, and properties held off-market, not actual rental vacancies.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in the Dominican Republic.
What's the rent-to-price ratio in the Dominican Republic as of 2026?
As of early 2026, the average annual rent-to-price ratio in the Dominican Republic sits around 7.5% to 8.5%, which translates to roughly 0.6% to 0.7% monthly rent relative to purchase price.
A rent-to-price ratio above 0.65% monthly, or around 8% annually, is generally considered favorable for buy-to-let investors in the Dominican Republic, and this ratio is essentially the same thing as gross rental yield expressed differently.
The Dominican Republic's rent-to-price ratio compares favorably to many Caribbean neighbors and even some Latin American capitals, where ratios often fall closer to 5% or 6% annually, making Dominican properties relatively attractive for income-focused buyers.
We have made this infographic to give you a quick and clear snapshot of the property market in the Dominican Republic. 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 the Dominican Republic give the best yields as of 2026?
Where are the highest-yield areas in the Dominican Republic as of 2026?
As of early 2026, the top three highest-yield areas in the Dominican Republic are Verón and Bávaro in the Punta Cana corridor, plus Evaristo Morales and Bella Vista in Greater Santo Domingo, where workforce demand and accessible prices combine well.
These top-performing areas typically deliver gross rental yields in the 9% to 11% range, significantly above the national average, especially for smaller apartments and condos.
The main characteristic these high-yield neighborhoods share is strong, consistent renter demand driven by employment, whether from tourism and airport services in Punta Cana or professional and university populations in Santo Domingo, paired with purchase prices that have not yet caught up to premium districts.
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 the Dominican Republic.
Where are the lowest-yield areas in the Dominican Republic as of 2026?
As of early 2026, the top three lowest-yield areas in the Dominican Republic are Piantini and Serrallés in Santo Domingo's prestige core, plus Cap Cana on the East Coast, where buyers pay significant lifestyle premiums.
These low-yield areas typically deliver gross rental yields in the 5% to 7% range, sometimes even lower for ultra-premium properties.
The main reason yields are compressed in these areas of the Dominican Republic is that purchase prices reflect status, security, and amenities that tenants value but are not willing to pay proportionally higher rents for, creating a gap between what you pay and what you earn.
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 the Dominican Republic.
Which areas have the lowest vacancy in the Dominican Republic as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in the Dominican Republic are Naco and Piantini in Santo Domingo, plus Verón in Punta Cana, where renters are "sticky" due to jobs and essential services.
These low-vacancy areas typically experience vacancy rates of just 3% to 5% annually, meaning properties stay occupied nearly year-round.
The main demand driver keeping vacancy low in these areas is proximity to major employment centers, whether corporate offices and embassies in Santo Domingo or the tourism and airport ecosystem near Punta Cana.
The trade-off investors typically face when targeting these low-vacancy areas is that purchase prices tend to be higher, especially in Santo Domingo's premium districts, which can compress gross yields even as occupancy stays strong.
Which areas have the most renter demand in the Dominican Republic right now?
The top three neighborhoods currently experiencing the strongest renter demand in the Dominican Republic are the Piantini-Naco-Evaristo Morales corridor in Santo Domingo, plus Bávaro and Verón in the Punta Cana area, where jobs and services concentrate.
The renter profiles driving most of the demand in these areas are young professionals and corporate employees in Santo Domingo, plus tourism and hospitality workers, airport staff, and long-stay visitors in the Punta Cana corridor.
Rental listings in these high-demand neighborhoods typically get filled within two to four weeks, sometimes faster for well-priced units in central locations or near major employers.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in the Dominican Republic.
Which upcoming projects could boost rents and rental yields in the Dominican Republic as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in the Dominican Republic are Santo Domingo's planned monorail system, continued Punta Cana International Airport expansion, and infrastructure improvements along the North Coast tourism corridor.
The neighborhoods most likely to benefit from these projects are western Santo Domingo areas near planned monorail transfer points, plus Downtown Punta Cana, Bávaro, and Verón as airport-driven demand grows.
Investors might realistically expect rent increases of 5% to 15% in affected neighborhoods once these projects are completed, though the timeline and exact impact will depend on construction progress and how quickly new workers and residents arrive.
You'll find our latest property market analysis about the Dominican Republic here.
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What property type should I buy for renting in the Dominican Republic as of 2026?
Between studios and larger units in the Dominican Republic, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments outperform larger units in terms of both rental yield and occupancy rates in the Dominican Republic, making them the better choice for income-focused investors.
Studios in the Dominican Republic typically yield 9% to 11% gross (around 540 to 660 Dominican pesos per 1,000 invested monthly, or roughly $9 to $11 USD, or €8 to €10 EUR), while larger two- and three-bedroom units often fall closer to 7% to 8% gross.
The main factor explaining this difference is that purchase prices rise faster than rents as unit size increases, meaning you pay more but do not collect proportionally more each month.
That said, larger units can be the better choice if you are targeting families on longer leases or corporate tenants who value space and are willing to pay a premium for stability, especially in neighborhoods like Piantini or Naco where professional demand is strong.
What property types are in most demand in the Dominican Republic as of 2026?
As of early 2026, the most in-demand property type in the Dominican Republic is the secure one- to two-bedroom apartment or condo, ideally with reliable amenities like backup power, security, and parking.
The top three property types ranked by current tenant demand in the Dominican Republic are: first, one-bedroom apartments in central Santo Domingo; second, two-bedroom condos in Punta Cana's workforce areas; and third, furnished units near employment hubs that appeal to professionals and long-stay visitors.
The primary trend driving this demand pattern is the growth of young professional and service-sector populations who prioritize convenience, security, and proximity to work over space or luxury.
One property type currently underperforming in demand and likely to remain so in the Dominican Republic is the large standalone villa, which has a narrower tenant base, higher maintenance costs, and longer vacancy periods between renters.
What unit size has the best yield per m² in the Dominican Republic as of 2026?
As of early 2026, unit sizes between 35 and 60 square meters, typically studios and compact one-bedrooms, deliver the best gross rental yield per square meter in the Dominican Republic.
For these optimal-sized units, the typical gross rental yield per square meter runs around 800 to 1,100 Dominican pesos monthly per million pesos invested (roughly $14 to $19 USD per $1,000 invested, or €13 to €17 EUR), depending on location and condition.
The main reason smaller or larger units tend to have lower yield per square meter is that very small units can be harder to rent at premium rates, while larger units suffer from diminishing rent returns as each additional square meter adds cost but not proportional rental income.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in the Dominican Republic.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Dominican Republic 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 the Dominican Republic as of 2026?
What are typical property taxes and recurring local fees in the Dominican Republic as of 2026?
As of early 2026, the annual property tax (called IPI) for a typical rental apartment in the Dominican Republic is 1% of the assessed value above the exempt threshold, but many smaller units pay nothing because the threshold sits around 10 million Dominican pesos (roughly $170,000 USD or €155,000 EUR).
Other recurring local fees landlords must budget for in the Dominican Republic include condo or HOA fees, which can range from 3,000 to 15,000 Dominican pesos monthly ($50 to $250 USD, or €45 to €230 EUR) depending on building amenities, plus occasional municipal waste charges.
These taxes and fees typically represent 5% to 15% of gross rental income in the Dominican Republic, with condo fees usually being the larger bite for investors in managed buildings.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in the Dominican Republic.
What insurance, maintenance, and annual repair costs should landlords budget in the Dominican Republic right now?
Annual landlord insurance for a typical rental property in the Dominican Republic runs around 0.2% to 0.5% of property value, which works out to roughly 20,000 to 50,000 Dominican pesos ($350 to $850 USD, or €320 to €780 EUR) for a mid-range apartment.
The recommended annual maintenance and repair budget in the Dominican Republic is about 1% of property value for condos and 1.2% to 1.5% for houses or villas, reflecting the reality that larger properties with roofs, gardens, and pumps cost more to maintain.
The type of repair expense that most commonly catches landlords off guard in the Dominican Republic is air conditioning replacement or major electrical work, especially since elevated construction input costs have made repairs more expensive than many owners expect.
In total, landlords in the Dominican Republic should realistically budget 1.2% to 2% of property value annually for insurance, maintenance, and repairs combined, which translates to roughly 70,000 to 200,000 Dominican pesos ($1,200 to $3,400 USD, or €1,100 to €3,100 EUR) for a typical rental unit.
Which utilities do landlords typically pay, and what do they cost in the Dominican Republic right now?
For long-term rentals in the Dominican Republic, tenants typically pay electricity and internet, while landlords may cover water and sometimes internet in furnished units, especially in tourism-heavy markets like Punta Cana where bundled services help maintain high occupancy.
When landlords do cover utilities in the Dominican Republic, the monthly cost typically runs 2,000 to 6,000 Dominican pesos for internet ($35 to $100 USD, or €32 to €90 EUR), while water is usually modest at 500 to 1,500 pesos ($8 to $25 USD, or €7 to €23 EUR), though electricity can swing wildly based on air conditioning use.
What does full-service property management cost, including leasing, in the Dominican Republic as of 2026?
As of early 2026, full-service property management in the Dominican Republic typically costs 8% to 12% of collected rent monthly, which works out to roughly 4,000 to 12,000 Dominican pesos ($70 to $200 USD, or €65 to €185 EUR) per month for a typical rental.
On top of ongoing management, leasing or tenant-placement fees in the Dominican Republic usually run half to one full month of rent, which can mean 25,000 to 60,000 Dominican pesos ($425 to $1,000 USD, or €390 to €920 EUR) each time you fill a vacancy.
What's a realistic vacancy buffer in the Dominican Republic as of 2026?
As of early 2026, landlords in the Dominican Republic should set aside around 6% to 10% of annual rental income as a vacancy buffer, depending on whether the property is in an urban core or a seasonal tourism market.
In practice, this translates to roughly 3 to 5 weeks of vacancy per year in Santo Domingo's central neighborhoods, and potentially 5 to 7 weeks in coastal areas like Punta Cana where seasonality and tenant turnover are higher.
Buying real estate in the Dominican Republic can be risky
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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 the Dominican Republic, 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 |
|---|---|---|
| Global Property Guide | It's a long-running international housing data publisher with a consistent price-versus-rent methodology across countries. | We used it as our anchor dataset for gross rental yields in the Dominican Republic. We treated it as the starting point and then validated against local taxes, fees, and vacancy realities. |
| DGII (Tax Authority) | It's the Dominican Republic's official tax authority publishing the rulebook for annual property tax on real estate. | We used it to quantify recurring property tax rules, rates, and thresholds. We also used it to explain why two owners of similar homes can face very different tax bills. |
| ONE (National Statistics Office) | It's the official national statistics agency and producer of the Dominican Republic's housing census. | We used it to frame the structural vacancy backdrop and translate census data into practical rental vacancy ranges for investable areas. |
| Diario Libre | It's a major national newspaper that clearly cites ONE's census figures directly in its reporting. | We used it for the headline census vacancy count that is easy for non-professionals to understand. We treated it as contextual and explained the distinction from rental vacancy. |
| ONE (Construction Cost Index) | It's an official statistical index produced by ONE tracking housing construction costs in the Dominican Republic. | We used it to explain why replacement and repair costs have been rising. We incorporated this into our maintenance budget assumptions for landlords. |
| Banco Central (CPI Statistics) | It's the country's central bank and the official home of consumer price index statistics. | We used it to ground our analysis in inflation-aware terms and explain why thresholds and fees often get adjusted over time. |
| Banco Central (Tourism Flow Report) | It's an official central bank publication using official tourism and migration inputs. | We used it to support renter demand strength in tourism-heavy markets like Punta Cana. We also used it to explain why seasonality widens vacancy swings in coastal areas. |
| Banco Central (Remittances) | It's the official central bank release for one of the key drivers of household spending and housing demand. | We used it as a macro-demand signal for rentals since remittances help households pay rent. We treated it as a "demand stays supported" indicator going into 2026. |
| Punta Cana International Airport | It's the airport operator's official communication channel for news and projects. | We used it to identify near-term catalysts supporting rental demand in Punta Cana and Bávaro. We connected airport activity to which micro-areas tend to benefit from job growth. |
| DR1 (DGII Exemption Update) | It's a long-running English-language outlet that reports on official DGII updates. | We used it as secondary confirmation that DGII updates thresholds periodically. The binding details still came from DGII's own documentation. |
| DR1 (Monorail Announcement) | It reports on a government-announced infrastructure plan with clear dates and scope. | We used it as a pipeline indicator for rental demand shifting along future transit corridors. We kept it labeled as "project pipeline" rather than guaranteed outcomes. |
| Dominican Today | It's a mainstream local news source providing project process details on government procurement. | We used it to corroborate that the monorail is moving beyond talk into procurement steps. We translated this into where demand may strengthen rather than claiming rents will definitely jump. |
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