Authored by the expert who managed and guided the team behind the Mexico Property Pack
Yes, the analysis of Mexico City's property market is included in our pack
If you are thinking about renting out a property in Mexico City as a foreigner, you probably have a lot of questions about what is actually allowed, what returns you can expect, and how the local market really works in 2026.
This guide answers those questions with real numbers, real neighborhoods, and real regulations that apply specifically to Mexico City right now.
We constantly update this blog post to keep the information fresh and reliable.
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 Mexico City.
Insights
- Mexico City sits outside the restricted zone, which means foreigners can own property directly without needing a fideicomiso bank trust, unlike coastal areas like Cancun or Los Cabos.
- Gross rental yields in Mexico City average around 7.35% in early 2026, but net yields typically land between 4.5% and 5.5% after factoring in HOA fees, vacancy, and property management costs.
- A typical 2-bedroom apartment in Mexico City rents for around MXN 20,600 per month (roughly $1,140 USD or €980 EUR), with rents growing about 9% year-over-year heading into 2026.
- Short-term rentals in Mexico City are now capped at 180 nights per year under the 2024 platform lodging reforms, and hosts must register with the city's mandatory Host Registry.
- Lomas de Sotelo is explicitly flagged by major indices as a top colonia for rental yield in Mexico City, offering better rent-to-price ratios than trendy neighborhoods like Roma or Condesa.
- Many condo buildings in Roma, Condesa, and Polanco quietly ban short-term rentals through HOA rules, even when city law allows it, which is a common reason Airbnb projections fail.
- Parking, 24/7 security, and water reliability (cistern systems) add the largest rent premiums in Mexico City due to the city's unique infrastructure challenges.
- Furnished apartments in expat-heavy neighborhoods like Juarez and San Miguel Chapultepec rent up to 30% faster than unfurnished units and command noticeable premiums.
Can I legally rent out a property in Mexico City as a foreigner right now?
Can a foreigner own-and-rent a residential property in Mexico City in 2026?
As of early 2026, foreigners can legally buy and rent out residential property in Mexico City without needing a special trust structure because the city sits outside Mexico's constitutionally restricted zone.
The most common ownership structure for foreigners in Mexico City is direct ownership in your own name, which works just like it would for a Mexican citizen, though you will need to complete the purchase through a licensed notary and register with the tax authority.
The main restriction foreigners face in Mexico City is not about ownership itself but about ensuring proper tax registration (RFC) and compliance, since renting out property triggers federal income tax obligations regardless of where you live.
If you're not a local, you might want to read our guide to foreign property ownership in Mexico City.
Do I need residency to rent out in Mexico City right now?
You do not need Mexican residency to own and rent out property in Mexico City, and many foreign landlords manage their rentals entirely from abroad using local property managers and accountants.
In practice, you should expect to obtain an RFC (Registro Federal de Contribuyentes) to legally collect rental income, issue invoices, and work with professional property managers who require proper tax documentation.
A Mexican bank account is not strictly required by law, but it makes collecting rent much easier since most long-term tenants pay via domestic bank transfers (SPEI), and many property managers strongly prefer depositing into a local account.
Managing a rental property in Mexico City remotely is absolutely feasible, with dozens of established property management companies offering full-service packages that handle tenant screening, rent collection, maintenance, and tax filings on your behalf.
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What rental strategy makes the most money in Mexico City in 2026?
Is long-term renting more profitable than short-term in Mexico City in 2026?
As of early 2026, long-term renting typically delivers more predictable and stable returns in Mexico City because vacancy is lower, operating costs are simpler, and you avoid the 180-night annual cap that now limits short-term rentals.
A well-managed long-term rental in a central Mexico City neighborhood might generate around MXN 240,000 to MXN 300,000 per year ($13,300 to $16,700 USD or €11,400 to €14,300 EUR), while a comparable short-term rental at 60% occupancy could gross MXN 350,000 to MXN 450,000 ($19,400 to $25,000 USD or €16,700 to €21,400 EUR) but with significantly higher management costs and regulatory risk.
Short-term rentals tend to outperform financially in premium tourist-heavy neighborhoods like Roma Norte, Condesa, and Polanco where nightly rates can exceed $100 USD, but only if your building's HOA allows it and you comply with the city's new platform lodging registration requirements.
What's the average gross rental yield in Mexico City in 2026?
As of early 2026, the average gross rental yield for residential properties in Mexico City is approximately 7.35% per year, according to the most widely cited local property index.
The realistic gross yield range for most residential properties in Mexico City falls between 5.5% and 8.5%, with lower yields in ultra-premium neighborhoods like Polanco and higher yields in well-connected but more affordable areas like Narvarte or San Rafael.
Smaller units such as studios and one-bedroom apartments typically achieve the highest gross yields in Mexico City because they attract a larger pool of renters (students, young professionals, digital nomads) and have lower purchase prices relative to the rent they command.
By the way, we have much more granular data about rental yields in our property pack about Mexico City.
What's the realistic net rental yield after costs in Mexico City in 2026?
As of early 2026, the realistic net rental yield for long-term rentals in Mexico City typically lands between 4.5% and 5.5% per year after accounting for all unavoidable operating costs.
Most landlords in Mexico City experience net yields in the range of 3.5% to 6%, with the lower end reflecting premium buildings with high HOA fees and the upper end reflecting well-managed properties in high-demand, moderate-price neighborhoods.
The three main cost categories that reduce gross yield to net yield in Mexico City are condo fees (mantenimiento), which can run MXN 2,000 to MXN 4,500 per month in central buildings; property management fees, typically 8% to 12% of collected rent for remote owners; and tenant turnover costs including leasing fees and the popular poliza juridica (legal insurance policy) that many landlords purchase.
You might want to check our latest analysis about gross and net rental yields in Mexico City.
What monthly rent can I get in Mexico City in 2026?
As of early 2026, a typical studio in Mexico City rents for around MXN 11,000 per month ($610 USD or €520 EUR), a 1-bedroom apartment rents for approximately MXN 17,500 ($970 USD or €830 EUR), and a 2-bedroom apartment rents for roughly MXN 20,600 ($1,140 USD or €980 EUR).
A realistic entry-level monthly rent for a decent studio in Mexico City ranges from MXN 8,000 to MXN 14,000 ($440 to $780 USD or €380 to €670 EUR), depending on the neighborhood and building quality.
A typical 1-bedroom apartment in Mexico City rents for between MXN 12,000 and MXN 28,000 per month ($670 to $1,550 USD or €570 to €1,330 EUR), with most units falling somewhere in the middle of that range.
A typical 2-bedroom apartment in Mexico City rents for between MXN 16,000 and MXN 35,000 per month ($890 to $1,940 USD or €760 to €1,670 EUR), with premium locations in Polanco, Condesa, and Roma Norte pushing toward the higher end.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Mexico City.
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 are the real numbers I should budget for renting out in Mexico City in 2026?
What's the total "all-in" monthly cost to hold a rental in Mexico City in 2026?
As of early 2026, the total "all-in" monthly cost to hold and maintain a typical rental property in Mexico City ranges from MXN 5,000 to MXN 10,000 ($280 to $555 USD or €240 to €475 EUR) before accounting for property management fees on collected rent.
A realistic low-to-high monthly cost range that covers most standard rental properties in Mexico City is MXN 3,500 to MXN 12,000 ($195 to $665 USD or €165 to €570 EUR), with the variation driven mainly by building type, location, and whether you use professional management.
The single largest contributor to monthly holding costs in Mexico City is typically the condo fee (mantenimiento), which covers building security, common area maintenance, water, and sometimes gas, and can easily run MXN 2,000 to MXN 4,500 per month in well-maintained central buildings.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Mexico City.
What's the typical vacancy rate in Mexico City in 2026?
As of early 2026, the typical vacancy rate for well-priced long-term rentals in desirable Mexico City neighborhoods is approximately 8%, which translates to roughly one month of vacancy per year.
Landlords in Mexico City should realistically budget for 3 to 5 weeks of vacancy per year in high-demand central areas, though properties in weaker or oversupplied locations may experience 6 to 8 weeks or more.
The main factor that causes vacancy rates to vary between Mexico City neighborhoods is proximity to employment centers, universities, and public transit, with colonias like Roma, Condesa, Del Valle, and Narvarte experiencing structurally tighter markets than peripheral areas.
Tenant turnover and vacancy in Mexico City typically peak in December through February, when many tenants relocate for the new year, and again in July and August when students and young professionals reshuffle before the fall semester.
We have a whole part covering the best rental strategies in our pack about buying a property in Mexico City.
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Where do rentals perform best in Mexico City in 2026?
Which neighborhoods have the highest long-term demand in Mexico City in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Mexico City are Roma Norte, Del Valle Centro, and Condesa, where units in good condition typically rent within 2 to 4 weeks of listing at market prices.
Families looking for long-term rentals in Mexico City tend to concentrate in Del Valle, Napoles, Coyoacan (especially Florida and Del Carmen), and San Angel, where they find larger spaces, good schools, and quieter residential streets.
Students drive strong rental demand in Copilco, Santo Domingo, and parts of Coyoacan near UNAM, as well as Lindavista and Zacatenco near the IPN campus, where affordable rooms and small apartments are always in high demand.
Expats and international professionals cluster heavily in Roma Norte, Condesa, Polanco, Juarez, San Miguel Chapultepec, and Santa Fe, where they find walkability, international restaurants, coworking spaces, and proximity to corporate offices.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Mexico City.
Which neighborhoods have the best yield in Mexico City in 2026?
As of early 2026, the three neighborhoods with the best rental yields in Mexico City are Lomas de Sotelo (explicitly flagged by the main index), San Rafael, and Narvarte, where lower purchase prices relative to rents create more favorable rent-to-price ratios.
The estimated gross rental yield in these top-yielding Mexico City neighborhoods typically ranges from 7.5% to 9%, compared to the citywide average of around 7.35%.
The main characteristic that allows these neighborhoods to achieve higher yields is that they offer strong rental demand from working professionals and students without the premium purchase prices seen in trendy neighborhoods like Roma or Condesa, where property values have appreciated faster than rents.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Mexico City.
Where do tenants pay the highest rents in Mexico City in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Mexico City are Polanco (Seccion I, II, III), Lomas de Chapultepec, and Bosques de Chapultepec, where 2-bedroom apartments often exceed MXN 40,000 per month ($2,220 USD or €1,900 EUR).
A typical monthly rent for a standard 2-bedroom apartment in these premium Mexico City neighborhoods ranges from MXN 35,000 to MXN 80,000 ($1,940 to $4,440 USD or €1,670 to €3,810 EUR), with luxury units and penthouses going significantly higher.
The main characteristic that makes these neighborhoods command the highest rents is their concentration of high-end amenities, international schools, embassy proximity, Chapultepec Park access, and the perception of safety and exclusivity that attracts corporate executives and diplomats.
The typical tenant profile in these highest-rent Mexico City neighborhoods consists of C-suite executives, diplomats, business owners, and high-earning professionals, often with corporate housing allowances or employer-subsidized rents that support premium pricing.
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.
What do tenants actually want in Mexico City in 2026?
What features increase rent the most in Mexico City in 2026?
As of early 2026, the three property features that increase monthly rent the most in Mexico City are dedicated parking (one or more spaces), 24/7 security with controlled access, and reliable water infrastructure including a cistern and pressure system, which all address the city's unique urban challenges.
Dedicated parking in central Mexico City can add a rent premium of 15% to 25% because street parking is scarce, car theft is a concern, and many tenants simply will not rent a unit without a parking space.
One commonly overrated feature that landlords invest in but tenants do not pay much extra for in Mexico City is high-end kitchen appliances, since many renters prioritize location and security over luxury finishes they may not use daily.
One affordable upgrade that provides a strong return on investment for landlords in Mexico City is installing a quality water filtration system and ensuring the cistern is well-maintained, because water reliability is a top concern for tenants who have experienced supply issues elsewhere.
Do furnished rentals rent faster in Mexico City in 2026?
As of early 2026, furnished apartments in Mexico City's expat-heavy neighborhoods like Roma Norte, Condesa, Juarez, and Polanco typically rent 2 to 4 weeks faster than comparable unfurnished units because they match the needs of mobile tenants seeking short corporate stays or "try the neighborhood" arrangements.
Furnished apartments in Mexico City generally command a rent premium of 15% to 30% over unfurnished units, with the premium highest in neighborhoods with strong expat and digital nomad demand where tenants are willing to pay for move-in convenience.
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How regulated is long-term renting in Mexico City right now?
Can I freely set rent prices in Mexico City right now?
Landlords in Mexico City can generally set the initial rent price freely by market agreement when signing a new lease, as there is no formal rent control that dictates what you must charge at the start of a tenancy.
Rent increases during a tenancy in Mexico City are increasingly scrutinized under recent tenant-protective reforms, and the safest approach for landlords is to tie renewal increases to the official inflation rate (INPC), which has been running in the 4% to 5% range, rather than attempting aggressive above-market hikes that could trigger disputes.
What's the standard lease length in Mexico City right now?
The standard lease length for residential rentals in Mexico City is one year, which is the most common baseline referenced in CDMX civil-code interpretations and widely accepted in the local market.
The typical security deposit in Mexico City is one month's rent, which is the widely accepted and legally defensible standard, though landlords often add protection through a guarantor (fiador) or a poliza juridica (legal insurance policy) rather than stacking multiple months of deposit.
At the end of a tenancy in Mexico City, the landlord must return the security deposit minus any legitimate deductions for unpaid rent, utility bills, or damage beyond normal wear and tear, typically within 30 days of the tenant vacating the property.
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.
How does short-term renting really work in Mexico City in 2026?
Is Airbnb legal in Mexico City right now?
Yes, Airbnb-style short-term rentals are legal in Mexico City in early 2026, but they are now regulated under the city's 2024 platform lodging reforms, which require hosts to register with the official Host Registry and comply with occupancy limits.
To legally operate a short-term rental in Mexico City, you must register each property with the city's Host Registry (Padron de Anfitriones), which requires renewal every two years, and hosts can register up to three properties before triggering additional commercial requirements.
Mexico City has implemented a strict 180-night annual cap on short-term rentals, meaning your property can only be rented to tourists for a maximum of half the year, whether those nights are consecutive or spread throughout the calendar year.
The most common penalty for operating a non-compliant short-term rental in Mexico City is denial of registry renewal and potential fines up to MXN 21,000 ($1,165 USD or €1,000 EUR), though enforcement has been inconsistent as the city builds out its compliance infrastructure.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Mexico City.
What's the average short-term occupancy in Mexico City in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Mexico City is approximately 60%, according to established STR data vendors tracking the market.
The realistic occupancy range for most short-term rentals in Mexico City falls between 45% and 75%, with top-performing listings in prime locations achieving the higher end and average or poorly-managed properties landing at the lower end.
The highest occupancy months for short-term rentals in Mexico City are typically March, April (around Semana Santa), October, November, and December (through the holidays), when tourism peaks and business travel remains strong.
The lowest occupancy months for short-term rentals in Mexico City are typically May, June, and September, when tourism slows and the rainy season discourages some visitors, though the city's year-round appeal keeps the floor relatively high compared to beach destinations.
Finally, please note that you can find much more granular data about this topic in our property pack about Mexico City.
What's the average nightly rate in Mexico City in 2026?
As of early 2026, the average nightly rate (ADR) for short-term rentals in Mexico City is approximately MXN 1,500 ($83 USD or €71 EUR), varying significantly by neighborhood, property quality, and whether you are renting an entire home versus a private room.
A realistic nightly rate range that covers most short-term rental listings in Mexico City is MXN 900 to MXN 3,500 ($50 to $195 USD or €43 to €167 EUR), with budget listings in peripheral areas at the low end and premium entire-home listings in Roma, Condesa, and Polanco at the high end.
The typical nightly rate difference between peak season (November through April) and off-season (May through September) in Mexico City is roughly 15% to 25%, with savvy hosts adjusting pricing dynamically to capture higher rates during holidays and major events.
Is short-term rental supply saturated in Mexico City in 2026?
As of early 2026, short-term rental supply in Mexico City's most popular neighborhoods like Roma Norte, Condesa, and Centro Historico is highly saturated, with over 23,000 active listings citywide creating intense competition for bookings.
The current trend in active short-term rental listings in Mexico City appears to be stabilizing or slightly declining in the most regulated areas, as the 180-night cap and registration requirements push some casual hosts out of the market while demand remains strong.
The most oversaturated neighborhoods for short-term rentals in Mexico City are Roma Norte, Condesa (Hipodromo and Hipodromo Condesa), Juarez, and parts of Centro Historico, where listing density is highest and competition for guests is fiercest.
Neighborhoods in Mexico City that still have room for new short-term rental supply include emerging areas like Narvarte, San Rafael, Santa Maria la Ribera, and Coyoacan, where tourist interest is growing but listing density remains lower than the ultra-trendy corridors.
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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 Mexico City, 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 |
|---|---|---|
| Inmuebles24 CDMX Rentability Index | Major national property marketplace with consistent rent-to-price ratio methodology. | We anchored gross yield expectations for long-term rentals in Mexico City. We cross-checked against the detailed monthly PDF for neighborhood-level examples. |
| Inmuebles24 CDMX Rent Report | Leading property portal publishing consistent rent benchmarks with clear definitions. | We used it for typical rent levels by unit type in Mexico City. We tracked year-over-year rent changes to contextualize market growth. |
| CDMX Civil Code (Congress PDF) | Official legislature publication of the civil law governing leases in Mexico City. | We used it for concrete lease basics like standard length and deposit norms. We confirmed that foreign ownership does not affect lease rules. |
| Ley de Turismo de la Ciudad de Mexico | Official law text governing tourism services including platform lodging rules. | We used it to define what CDMX considers short-term tourist lodging via platforms. We anchored the 180-night cap and registration requirements. |
| AirDNA Mexico City Snapshot | Established short-term rental data provider used by media and investors. | We used it to estimate short-term occupancy and ADR for Mexico City. We triangulated against Inside Airbnb data to sanity-check listing volumes. |
| Inside Airbnb Mexico City | Long-running independent project using consistent scraped listing data. | We used it to estimate the scale and distribution of STR supply across CDMX. We assessed neighborhood-level saturation patterns. |
| CDMX Open Data Portal (Vacancy) | Official city government dataset providing neighborhood-level vacancy signals. | We used it to ground vacancy expectations geographically across colonias. We avoided relying purely on anecdote for market tightness. |
| SAT Rental Income Guidance | Official tax authority providing the most practical reference for landlord obligations. | We used it to outline what you need to do to declare rental income legally. We shaped the RFC and tax filing requirements section. |
| Jefatura de Gobierno CDMX (Platform Lodging Reforms) | First-party government announcement summarizing the 2024 regulatory changes. | We used it to explain the practical meaning of the platform lodging law. We cross-checked against the full law PDF for accuracy. |
| INEGI Consumer Price Index (INPC) | National statistics office providing the official inflation reference for Mexico. | We used it to contextualize rent growth versus inflation in CDMX. We anchored "safe" rent increase levels to the inflation baseline. |
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.