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Mexico City short-term rentals remain profitable in 2026, with typical properties earning $1,100-$1,400 USD monthly despite increased regulations and competition.
The Mexico City short-term rental market continues to show strong fundamentals as we approach 2026, with average monthly earnings of $1,161 USD and occupancy rates between 67-75% in popular neighborhoods. However, new regulatory restrictions limiting rentals to 180 days annually and rising operational costs are reshaping the investment landscape for property owners considering Airbnb opportunities.
If you want to go deeper, you can check our pack of documents related to the real estate market in Mexico, based on reliable facts and data, not opinions or rumors.
Mexico City short-term rentals generate average monthly earnings of $1,161 USD with 67% occupancy rates as of 2025, supported by 13.8% growth in international tourism.
New regulations limit rentals to 180 days annually and require mandatory registration, while net yields range from 5-7% after taxes and operating expenses.
| Metric | 2025 Performance | 2026 Outlook |
|---|---|---|
| Average Monthly Earnings | $1,161 USD | $1,200-$1,400 USD |
| Occupancy Rate | 67% (citywide average) | 68-75% (prime areas) |
| Average Daily Rate | $54-$89 USD | $60-$95 USD |
| Annual Rental Days Limit | 180 days maximum | 180 days (unchanged) |
| Gross Rental Yields | 8-14% | 8-12% |
| Net Rental Yields | 5-7% | 4-6% |
| Active Listings | 24,000-31,000 | 25,000-32,000 |
How much does a typical short-term rental in Mexico City earn per month in 2026 compared to 2024 and 2025?
A typical short-term rental in Mexico City earns approximately $1,200-$1,400 USD per month in 2026, representing a moderate increase from the $1,161 USD average recorded in 2025.
The growth trajectory shows steady improvement over recent years. In 2024, average monthly earnings were around $1,050-$1,100 USD, while 2025 saw earnings reach $1,161 USD based on current market data. This upward trend reflects rising nightly rates and improved occupancy rates in core neighborhoods.
Prime neighborhoods like Roma Norte, Condesa, and Polanco are driving these earnings higher, with properties in these areas often exceeding $1,500-$2,000 monthly due to their appeal to international travelers and digital nomads. Properties in the top 25% performance bracket earn $2,043 USD or more monthly, while top-tier listings can generate over $3,593 USD.
The growth is primarily attributed to Mexico City's position as a leading destination for North American travelers, with tourism arrivals increasing 13.8% in 2025. Rising demand from digital nomads and extended-stay guests has also contributed to higher monthly earnings potential.
It's something we develop in our Mexico property pack.
What's the current occupancy rate across the main neighborhoods like Roma, Condesa, Polanco, and Centro?
Occupancy rates across Mexico City's prime short-term rental neighborhoods range from 68-75% as of September 2025, with significant variation by location and seasonality.
Roma and Condesa lead with occupancy rates of 70-85% during peak seasons and 68% annual averages, benefiting from their popularity among international visitors and cultural attractions. These neighborhoods attract longer-staying guests, particularly digital nomads and cultural tourists.
Polanco maintains approximately 60% average occupancy, though luxury properties in this upscale district often achieve higher rates due to business travelers and premium amenities. The neighborhood's proximity to business districts supports steady demand from corporate guests.
Centro HistĂłrico shows occupancy rates of 65-75% annually, appealing to budget-conscious travelers and those seeking authentic cultural experiences. The area benefits from proximity to major attractions and excellent public transportation connections.
Peak season occupancy across all neighborhoods can reach 85-90% during high-demand periods like December holidays and spring months, while low seasons typically see 50-60% occupancy rates.
How are Mexico City's tourism numbers trending—are international arrivals still growing year over year?
Mexico City tourism continues experiencing robust growth, with Mexico overall welcoming 47.4 million international tourists in the first half of 2025, representing a 13.8% increase compared to the same period in 2024.
The capital city specifically benefits from this national tourism boom, with Mexico City International Airport processing 21.6 million passengers in the first half of 2025. International arrivals to Mexico City hotels exceeded 2 million foreign visitors in the first half of 2023 alone, and this trend has accelerated significantly.
North American visitors drive much of this growth, with 7.3 million Americans visiting Mexico in the first half of 2025 (2.4% increase) and 1.6 million Canadians (11.8% increase). The US-Mexico air corridor expanded by 5.5% to 4.6 million available seats, making it the world's second-busiest international route.
Tourism spending has also increased substantially, reaching $16.68 billion in the first half of 2025, a 6.3% increase from the previous year. This indicates visitors are not only arriving in greater numbers but also spending more during their stays.
Digital nomad migration and remote work trends continue supporting extended-stay demand, with many international visitors choosing month-long accommodations in neighborhoods like Roma and Condesa.
What regulations are in place now for Airbnb and short-term rentals, and are new restrictions expected in 2026?
Mexico City implemented comprehensive short-term rental regulations in 2024 that remain in effect through 2026, requiring mandatory host registration and limiting rentals to 180 days annually.
Current regulations require all hosts to register in the Host Registry, with each property receiving a unique registration number that must be displayed on booking platforms. Hosts must provide proof of civil liability insurance, property ownership documentation, and comply with safety standards including smoke detectors and fire extinguishers.
The 180-day annual rental limit effectively restricts properties to 50% occupancy for short-term use, aimed at preserving housing stock for local residents. Hosts must submit semi-annual occupancy reports to the Ministry of Tourism, and violations can result in fines up to MXN $21,000 ($1,085 USD).
Additional restrictions expected for 2026 include potential implementation of a "digital nomad tax" for guests staying more than 20 nights and possible stricter limitations on the number of properties individual hosts can register. City officials are also considering enhanced environmental compliance requirements.
Registration renewals are required every two years, and hosts owning more than three properties must obtain special permits with additional commercial licensing requirements.
What are the average nightly rates in the most popular neighborhoods, and how do they compare with hotel prices?
| Neighborhood | Average Nightly Rate (USD) | Comparable Hotel Range (USD) |
|---|---|---|
| Roma Norte | $91 | $85-$120 |
| Condesa | $80 | $75-$110 |
| Polanco | $120-$160 | $140-$220 |
| Centro HistĂłrico | $65 | $60-$95 |
| Juárez | $75 | $70-$100 |
| Narvarte | $60 | $55-$85 |
| Doctores | $55 | $50-$80 |
How much are property purchase prices and mortgage rates rising in key districts where short-term rentals are most profitable?
Property purchase prices in Mexico City's prime short-term rental districts have risen 8-12% annually, with neighborhoods like Roma and Polanco reaching $1,200-$1,400 USD per square meter as of 2025.
Polanco leads price appreciation with properties averaging $1,400 USD per square meter, while Roma Norte and Condesa command $1,200-$1,300 USD per square meter. Centro HistĂłrico offers more affordable entry points at $900-$1,100 USD per square meter but with lower rental potential.
Mortgage rates in Mexico currently range from 7-9% for qualified buyers, with foreign investors often facing higher down payment requirements of 30-40%. The median monthly mortgage payment stands around MXN 31,613 ($1,580 USD) over a 20-year period for typical investment properties.
Five-year appreciation in these key districts has been substantial, with properties purchased in 2020 typically gaining MXN 1-2 million in value. This appreciation has created significant wealth for early investors while pricing out many middle-class buyers from central neighborhoods.
Real estate analysts project continued price growth of 3-7% through 2025, though this represents a moderation from 2024's 8.1% gains. Supply constraints remain the primary driver, with Mexico City needing approximately 500,000 new homes to meet demand.
What are typical running costs—cleaning, utilities, property management—for a short-term rental in Mexico City in 2026?
Operating costs for Mexico City short-term rentals typically consume 30-35% of gross rental income, with cleaning, utilities, and management representing the largest expense categories.
Cleaning costs range from $120-$200 monthly for typical properties, with turnover cleaning averaging $50-$80 per guest checkout. Professional cleaning services are essential for maintaining high guest ratings and occupancy rates in competitive neighborhoods.
Monthly utilities including electricity, water, gas, and internet average $80-$120 per month for standard one-bedroom properties. Air conditioning usage during warmer months can push electricity costs higher, particularly in summer months from May through September.
Property management fees range from 15-25% of gross rental income for full-service Airbnb management, while long-term rental management costs only 8-12%. Self-managed properties can improve net returns but require significant time investment for guest communication, cleaning coordination, and maintenance.
Platform commissions consume 12-15% of gross income through Airbnb and other booking platforms, while mandatory insurance and registration fees add approximately $500-$800 annually per property.
How do taxes on short-term rental income work locally, and what does that mean for net returns?
Mexico City short-term rental income faces multiple tax obligations including 16% VAT, 3-5% lodging tax, and income tax rates up to 35%, significantly impacting net returns.
The lodging services tax of 3-5% applies to the total listing price including cleaning fees, collected from guests and remitted monthly to Mexico City's Ministry of Finance. Airbnb automatically collects this tax in most cases, simplifying compliance for hosts.
Value Added Tax (VAT) of 16% applies to all short-term rental income, typically withheld by platforms like Airbnb but requiring verification by hosts. Income tax rates vary from 1.92% to 35% depending on annual income levels, with most short-term rental operators falling into higher brackets.
After accounting for all taxes and operating expenses, net yields typically range from 5-7% for well-managed properties, compared to gross yields of 8-14%. This tax burden is substantially higher than long-term rentals, which face lower administrative requirements.
Hosts can deduct legitimate business expenses including cleaning, maintenance, utilities, and depreciation, but must maintain detailed financial records and consider consulting local tax professionals to ensure compliance with SAT (tax authority) requirements.
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How competitive is the market—how many active Airbnb listings are there compared to last year?
Mexico City's short-term rental market maintains approximately 24,000-31,000 active Airbnb listings as of September 2025, representing a slight decrease from 2024's oversupply situation.
The listing count has stabilized after growing 35% since pre-pandemic levels, with regulatory enforcement reducing illegal or non-compliant properties. This supply contraction has actually improved occupancy rates for registered, compliant properties operating within the legal framework.
Competition remains intense in prime neighborhoods, with Roma and Condesa hosting the highest concentration of listings. However, the 180-day annual rental limit has reduced effective competition as many properties cannot maintain year-round availability.
Professional property management companies are increasing their market share, with larger operators managing multiple properties and leveraging economies of scale. Individual hosts face growing pressure to professionalize their operations to compete effectively.
Market analysis indicates demand is growing faster than supply in 2025, creating opportunities for well-positioned properties to increase both occupancy and rates. The supply-demand imbalance particularly benefits compliant properties in desirable neighborhoods.
What risks should owners be aware of, like safety, political shifts, or changes in demand from digital nomads?
Mexico City short-term rental owners face regulatory, market, and operational risks that require careful monitoring and risk management strategies.
Regulatory risks include potential tightening of the 180-day limit, implementation of additional taxes targeting foreign-owned properties, and stricter enforcement of safety and environmental standards. Political shifts could introduce new restrictions or taxes specifically affecting short-term rentals.
Market risks involve oversupply returning if economic conditions change, currency fluctuations affecting international demand, and competition from new hotel developments in prime neighborhoods. Digital nomad demand, while currently strong, could stagnate if costs rise further or alternative destinations become more attractive.
Safety risks remain low in major expat-friendly neighborhoods like Roma, Condesa, and Polanco, but require ongoing attention to guest security and property protection. Crime rates in these areas are generally comparable to other major international cities.
Economic risks include rising interest rates affecting property values, inflation impacting operating costs, and potential changes in USD-MXN exchange rates influencing international visitor spending power.
How much are long-term rental yields in Mexico City right now, and how do they compare with short-term rental returns?
Long-term rental yields in Mexico City average 4-6% gross annually as of September 2025, significantly lower than short-term rental gross yields of 8-14%.
After expenses and taxes, long-term rentals typically generate net yields of 3-4%, while short-term rentals achieve 5-7% net yields despite higher operating costs and tax burdens. The yield gap reflects the premium that short-term rentals command for flexibility and services.
Central neighborhoods show long-term yields around 3-5% due to higher property prices, while emerging areas like Doctores and Narvarte can achieve 6-8% long-term yields with lower purchase prices. Roma and Condesa long-term yields range from 5.71-6.71%, making them attractive for both rental strategies.
Short-term rentals require significantly more management time and carry regulatory risks that long-term rentals avoid. However, the monthly cash flow from short-term rentals typically doubles that of traditional long-term leases when operated effectively.
It's something we develop in our Mexico property pack.
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 types of properties—studios, one-bedroom apartments, or larger homes—are performing best in 2026?
One-bedroom and well-decorated two-bedroom apartments deliver the strongest performance in Mexico City's short-term rental market, attracting the highest booking rates and revenue generation.
One-bedroom apartments represent the sweet spot for Mexico City short-term rentals, offering optimal balance between purchase costs, operating expenses, and rental income. These properties appeal to the dominant guest demographics: solo travelers and couples, who comprise approximately 60% of bookings.
Two-bedroom apartments perform well when targeting small groups and longer-staying digital nomads, though they require higher upfront investment and cleaning costs. Properties with dedicated workspace areas command premium rates from remote workers.
Studios provide reliable occupancy due to their affordability but generate lower absolute revenues, making them suitable for investors seeking steady cash flow rather than maximum returns. Entry-level studios average $31 per night compared to $54 for typical one-bedroom properties.
Larger homes and three-bedroom properties offer higher headline earnings but experience more volatile occupancy and substantially higher operating costs. These properties work best for hosts who can target families and larger groups during peak seasons.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Mexico City's short-term rental market remains profitable in 2026 but requires careful navigation of increased regulations and operating costs.
Success depends on choosing the right property type, maintaining regulatory compliance, and implementing professional management practices to maximize occupancy and revenue potential.
It's something we develop in our Mexico property pack.
Sources
- AirROI Mexico City STR Market Analysis 2025
- Airbtics Mexico City Airbnb Revenue Data
- Hostaway Mexico City Airbnb Regulations Guide
- Travel and Tour World Mexico Tourism 2025
- TheLatinvestor Mexico City Property Price Forecasts
- Global Property Guide Mexico Rental Yields
- PriceLabs Mexico City STR Market Outlook 2025
- Mexico News Daily Airbnb Regulation Requirements