Authored by the expert who managed and guided the team behind the Mexico Property Pack
Everything you need to know before buying real estate is included in our Mexico Property Pack
If you're thinking about investing in rental property in Mexico, you probably want to know what kind of return you can realistically expect.
This article breaks down the actual rental yields across Mexico in 2026, covering everything from gross and net returns to the neighborhoods where your money works hardest.
We update this blog post regularly so the numbers stay fresh and useful for your investment decisions.
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.
Insights
- Mexico's blended gross rental yield of around 6.3% sits just below the 7% Banxico policy rate, which means property investors need to be strategic about location to beat risk-free returns.
- Smaller apartments in Mexico City, particularly studios and one-bedrooms near transit hubs, can achieve gross yields between 6.5% and 9%, outperforming larger units by a wide margin.
- The gap between gross and net yields in Mexico is typically around 2.2 percentage points, driven mainly by vacancy buffers, property taxes, maintenance, and management fees.
- Neighborhoods like Portales and Narvarte in Mexico City often deliver 7% to 8% gross yields because prices have not caught up with strong professional renter demand.
- Prime areas such as Polanco and San Pedro Garza García compress yields to 3.5% to 5.5% gross since buyers pay a prestige premium that rents cannot match.
- Mexico's national vacancy rate hovers around 5.5%, but tight submarkets near universities and job centers can see vacancy as low as 2% to 4%.
- Full-service property management in Mexico typically costs 8% to 12% of monthly rent, plus a tenant placement fee equal to half or one full month's rent.
- Monterrey's Metro Lines 4 and 6, advancing toward the 2026 World Cup, are expected to lift rents in surrounding corridors by improving commute times to employment nodes.
What are the rental yields in Mexico as of 2026?
What's the average gross rental yield in Mexico as of 2026?
As of early 2026, the estimated average gross rental yield across Mexico for residential properties is around 6.3% per year.
Most typical rental properties in Mexico fall within a gross yield range of about 5% to 8%, depending on the city, neighborhood, and property type.
This 6.3% national average is competitive but sits just below Mexico's benchmark interest rates, which means investors need to choose carefully to outperform what they could earn from government bonds.
The single most important factor influencing gross rental yields in Mexico right now is the gap between property price growth and rent growth, with prices in premium areas often rising faster than rents can follow.
What's the average net rental yield in Mexico as of 2026?
As of early 2026, the estimated average net rental yield in Mexico is around 4.1% per year after accounting for all typical landlord expenses.
The difference between gross and net yields in Mexico is typically about 2.2 percentage points, which represents the cost of actually owning and managing a rental property.
The expense category that most significantly reduces gross yield to net yield in Mexico is the combination of vacancy periods and property management fees, which together can consume 10% to 15% of gross rental income.
Most standard investment properties in Mexico deliver net yields in the range of 3% to 5.5%, with the variation depending on how efficiently you manage costs and how well you minimize vacancy.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Mexico.
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 yield is considered "good" in Mexico in 2026?
Local investors in Mexico generally consider a gross rental yield of 7% or higher to be "good" because it clearly beats the opportunity cost of holding government securities.
The threshold that separates average-performing properties from high-performing ones in Mexico is typically around 7% gross, with anything above that considered strong and net yields above 5% viewed as excellent.
How much do yields vary by neighborhood in Mexico as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Mexico can be as wide as 3.5% to 9%, representing a gap of more than five percentage points.
The highest rental yields in Mexico typically come from well-connected, mid-priced renter hubs like Portales, Narvarte, and parts of Azcapotzalco in Mexico City, or Apodaca and Guadalupe in the Monterrey metro area.
The lowest rental yields tend to cluster in premium status neighborhoods like Polanco and Lomas de Chapultepec in Mexico City, San Pedro Garza García in Monterrey, and Puerta de Hierro in Guadalajara.
The main reason yields vary so dramatically across neighborhoods in Mexico is that property prices in prestige areas rise much faster than rents, compressing returns for investors who pay the location premium.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Mexico.
How much do yields vary by property type in Mexico as of 2026?
As of early 2026, gross rental yields in Mexico range from about 4% for large luxury homes to 9% for well-located studios and one-bedroom apartments.
Studios and one-bedroom apartments currently deliver the highest average gross rental yields in Mexico, often reaching 6.5% to 9% in transit-connected neighborhoods with strong job access.
Large houses and luxury villas typically deliver the lowest average gross rental yields in Mexico, often falling between 4% and 6% because purchase prices run far ahead of what tenants will pay in rent.
The key reason yields differ between property types in Mexico is that rents do not scale proportionally with size or luxury level, so smaller units attract more renters at price points that generate better returns on investment.
By the way, you might want to read the following:
What's the typical vacancy rate in Mexico as of 2026?
As of early 2026, the estimated average residential vacancy rate in Mexico for long-term rentals is around 5.5%.
Vacancy rates across different neighborhoods in Mexico range from as low as 2% to 4% in tight renter markets near universities and job centers, up to 8% to 12% in luxury segments or areas with oversupply.
The main factor driving vacancy rates in Mexico right now is the match between what is being built and what renters can actually afford, with mid-market units in practical locations filling much faster than luxury inventory.
Mexico's 5.5% vacancy rate is reasonable by regional standards, reflecting strong underlying renter demand in major metros even as some submarkets experience friction from tenant screening and lease formalities.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Mexico.
What's the rent-to-price ratio in Mexico as of 2026?
As of early 2026, the estimated average rent-to-price ratio in Mexico is about 0.52% per month, which translates to roughly 6.3% annually.
Buy-to-let investors in Mexico generally look for a rent-to-price ratio of at least 0.58% per month (about 7% annualized) to consider a property favorable, since this ratio directly determines your gross rental yield.
Mexico's rent-to-price ratio is competitive compared to many Latin American markets, sitting in a middle range that offers better returns than some South American capitals but lower than certain high-yield emerging markets.
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.
Which neighborhoods and micro-areas in Mexico give the best yields as of 2026?
Where are the highest-yield areas in Mexico as of 2026?
As of early 2026, the top highest-yield neighborhoods in Mexico include Portales and Narvarte in Mexico City, Apodaca in the Monterrey metro, and parts of Zapopan away from the luxury corridors in Guadalajara.
These high-performing areas typically deliver gross rental yields in the range of 7% to 9%, significantly above the national average of around 6.3%.
The main characteristic these high-yield neighborhoods share is that they have strong, practical renter demand from working professionals and families, while property prices have not yet caught up to that demand.
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 Mexico.
Where are the lowest-yield areas in Mexico as of 2026?
As of early 2026, the lowest-yield neighborhoods in Mexico include Polanco and Lomas de Chapultepec in Mexico City, San Pedro Garza García in Monterrey, and Puerta de Hierro in Guadalajara.
These premium areas typically deliver gross rental yields in the range of just 3.5% to 5.5%, well below the national average.
The main reason yields are compressed in these areas is that buyers pay a substantial prestige premium for the address, but tenants are not willing to pay rents that scale proportionally with those high purchase prices.
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 Mexico.
Which areas have the lowest vacancy in Mexico as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Mexico include Del Valle and Narvarte in Mexico City, the Americana corridor in Guadalajara, and Obispado in Monterrey.
These low-vacancy areas typically experience vacancy rates in the range of just 2% to 4%, meaning landlords rarely struggle to find tenants.
The main demand driver keeping vacancy low in these neighborhoods is their practical combination of transit access, job proximity, and a housing stock that matches what working professionals and families can actually afford.
The trade-off investors face when targeting these low-vacancy areas is that the strong tenant demand often pushes prices higher, which can compress gross yields even as occupancy remains excellent.
Which areas have the most renter demand in Mexico right now?
The neighborhoods currently experiencing the strongest renter demand in Mexico include Roma, Condesa, and Del Valle in Mexico City, the Americana corridor in Guadalajara, and areas near corporate employment nodes in Monterrey.
The renter profile driving most of the demand in these areas consists of young professionals, remote workers, and small families seeking walkable neighborhoods with good services and transit connections.
In these high-demand neighborhoods, well-priced rental listings typically get filled within one to three weeks, and landlords often receive multiple inquiries shortly after posting.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Mexico.
Which upcoming projects could boost rents and rental yields in Mexico as of 2026?
As of early 2026, the top infrastructure projects expected to boost rents in Mexico include Monterrey's Metro Lines 4 and 6 (advancing toward the World Cup), ongoing transit improvements in Mexico City, and airport and highway upgrades in Quintana Roo and Yucatán.
The neighborhoods most likely to benefit from these projects include corridors near the new Monterrey metro stations, central alcaldías in Mexico City where supply constraints persist, and longer-stay residential pockets in Mérida and the Riviera Maya.
Investors might realistically expect rent increases of 5% to 15% in affected neighborhoods once these projects are completed, though the timing and magnitude will vary by specific location and property type.
You'll find our latest property market analysis about Mexico here.
Get fresh and reliable information about the market in Mexico
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What property type should I buy for renting in Mexico as of 2026?
Between studios and larger units in Mexico, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments generally outperform larger units in Mexico in terms of both rental yield and occupancy rates.
Studios in well-located neighborhoods typically achieve gross rental yields of 6.5% to 9% (around MXN 8,000 to 15,000 per month, or $400 to $750 USD, or €370 to €700 EUR), while larger two or three-bedroom units often yield 5% to 7%.
The main factor explaining this difference is that more renters in Mexico can afford smaller units, which creates broader demand and faster leasing cycles for studios and one-bedrooms.
However, larger units can be the better investment choice when targeting families or roommate groups in commuter neighborhoods, where tenant stability often offsets the slightly lower yield percentage.
What property types are in most demand in Mexico as of 2026?
As of early 2026, the most in-demand property type in Mexico is the mid-market apartment, particularly one and two-bedroom units in neighborhoods with good transit and job access.
The top three property types ranked by current tenant demand in Mexico are mid-market apartments (one to two bedrooms), family-friendly condos in gated communities, and well-located houses priced for the local tenant budget.
The primary demographic trend driving this demand pattern is the growth of young professionals and small families seeking practical, affordable housing near employment centers in Mexico's major metros.
Large luxury homes and trophy properties are currently underperforming in tenant demand and will likely remain so, as the pool of renters who can afford premium monthly payments is simply much smaller.
What unit size has the best yield per m² in Mexico as of 2026?
As of early 2026, units between 40 and 60 square meters typically deliver the best gross rental yield per square meter in Mexico.
These optimally sized units in good locations can generate gross rental yields of around 7% to 8% per m² (roughly MXN 200 to 280 per m² monthly, or $10 to $14 USD, or €9 to €13 EUR per m²).
Smaller studios can face higher turnover costs that eat into returns, while larger units spread the same tenant demand over more square meters, diluting the yield per m² in both cases.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Mexico.
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 costs cut my net yield in Mexico as of 2026?
What are typical property taxes and recurring local fees in Mexico as of 2026?
As of early 2026, the annual property tax (predial) for a typical rental apartment in Mexico ranges from about MXN 2,000 to MXN 15,000 per year ($100 to $750 USD, or €95 to €700 EUR), depending on the municipality and assessed value.
Other recurring local fees landlords must budget for in Mexico include water and sewer charges (varying widely by city) and HOA or maintenance fees for condominiums, which can range from MXN 1,000 to MXN 5,000 or more per month ($50 to $250 USD, or €45 to €230 EUR).
These taxes and fees typically represent about 5% to 15% of gross rental income in Mexico, with the exact percentage depending heavily on the specific municipality and whether the property is in a managed building.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Mexico.
What insurance, maintenance, and annual repair costs should landlords budget in Mexico right now?
The estimated annual landlord insurance cost for a typical rental property in Mexico ranges from about MXN 3,000 to MXN 10,000 per year ($150 to $500 USD, or €140 to €465 EUR), depending on coverage level and location risk.
Landlords in Mexico should budget around 0.8% to 1.5% of property value annually for maintenance and repairs, which translates to roughly MXN 16,000 to MXN 45,000 per year ($800 to $2,250 USD, or €740 to €2,100 EUR) for a typical MXN 2 to 3 million property.
The type of repair expense that most commonly catches landlords off guard in Mexico is water damage and plumbing issues, especially in older buildings or coastal properties where humidity and salt accelerate deterioration.
In total, landlords should realistically budget MXN 20,000 to MXN 55,000 per year ($1,000 to $2,750 USD, or €930 to €2,550 EUR) for the combined costs of insurance, maintenance, and repairs.
Which utilities do landlords typically pay, and what do they cost in Mexico right now?
In long-term rentals in Mexico, tenants typically pay electricity (CFE) and often gas and internet, while landlords or HOAs commonly cover water and building maintenance fees.
The estimated monthly cost for landlord-paid utilities in a typical rental unit in Mexico ranges from about MXN 500 to MXN 2,000 ($25 to $100 USD, or €23 to €95 EUR) for basic long-term rentals, and can reach MXN 1,500 to MXN 5,000 ($75 to $250 USD, or €70 to €230 EUR) for furnished or executive rentals that include more services.
What does full-service property management cost, including leasing, in Mexico as of 2026?
As of early 2026, full-service property management in Mexico typically costs between 8% and 12% of monthly rent (roughly MXN 800 to MXN 1,800 per month, or $40 to $90 USD, or €37 to €85 EUR, on a MXN 10,000 to 15,000 rent).
The typical leasing or tenant-placement fee charged on top of ongoing management in Mexico is usually equal to 50% to 100% of one month's rent (MXN 5,000 to MXN 15,000, or $250 to $750 USD, or €230 to €700 EUR), paid each time a new tenant is placed.
What's a realistic vacancy buffer in Mexico as of 2026?
As of early 2026, landlords in Mexico should set aside about 5% to 8% of annual rental income as a vacancy buffer to account for periods between tenants.
This translates to roughly two to four vacant weeks per year for a well-located, correctly priced property in Mexico, though luxury units or seasonal markets may experience longer gaps.
Buying real estate in Mexico can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
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, 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 |
|---|---|---|
| Sociedad Hipotecaria Federal (SHF) Price Index | SHF is Mexico's housing finance development bank and its price index is a widely cited official benchmark. | We used it to anchor property prices in our rent-to-price calculations and to avoid relying only on listing portals. We treated it as the official reality-check for national housing price trends. |
| SHF Historical Index Documentation | This is SHF's own repository for its house price index series and methodology documentation. | We used it to confirm the index scope covers residential properties and includes geographic breakdowns. We relied on it as the backbone price index source when triangulating with private rent data. |
| INEGI Consumer Price Index (INPC) | INEGI is Mexico's national statistics institute and the INPC is the official inflation measure. | We used it to contextualize rent growth versus inflation and understand real versus nominal changes. We also used it to check whether rising rents are a Mexico-wide story or mainly a big-city phenomenon. |
| INEGI INPC Press Bulletin | It's a primary-source INEGI release that is directly verifiable. | We used it as a template for how INEGI communicates inflation levels and changes. We used it to keep our rent indexation assumptions consistent with actual inflation prints. |
| Banco de México Policy Decision | This is Banxico's official policy announcement and the top reference for Mexico interest rates. | We used it to set the risk-free benchmark that investors compare yields against in early 2026. We also used it to explain why investors often want higher yields when rates are high. |
| Banco de México SIE Rates Database | Banxico's SIE is the official database for Mexico's market rates and government security auction results. | We used it to reference early January 2026 CETES yields as the opportunity-cost baseline. We used it to define what "good yield" means relative to what you can earn without tenants. |
| Banco de México Mortgage Rates Table (CF303) | This is Banxico's official table for household credit rates including mortgage cost indicators. | We used it to approximate typical mortgage rates in late 2025 for early 2026 buyers. We used it to explain leveraged versus unleveraged yield expectations. |
| Inmuebles24 CDMX Index Report | It's a major national portal and the report is a transparent, data-backed market snapshot with repeat updates. | We used it as a concrete numeric rent-to-price reference from a large dataset of listings. We treated it as one leg of our triangulation rather than the whole truth. |
| Propiedades.com Market Values | Propiedades.com is a large Mexican platform and publishes zone-level price references that are easy to cross-check. | We used it to validate neighborhood-level price dispersion which drives yield dispersion. We used it to avoid over-generalizing Mexico as one single market. |
| CONUEE Electricity Tariff Overview | CONUEE is a Mexican government body that summarizes the official tariff scheme categories. | We used it to describe what landlords might see on electricity bills without relying on unofficial explainers. We used it for the utilities cost section framing. |
| CONAGUA Water Tariffs Portal | CONAGUA is Mexico's federal water authority and hosts an official portal to consult water tariffs. | We used it to ground water-cost discussions in an official database even though amounts vary by city. We used it to explain why water costs are hyper-local across Mexico. |
| CDMX Finance Secretariat Portal | It's the official tax and payment portal for Mexico City and a reliable reference for how predial works in practice. | We used it as a "how it's actually paid" reference and to anchor examples for the country's biggest rental market. We used it to illustrate recurring local fees that cut net yield. |
| CONDUSEF Renter and Landlord Guidance | CONDUSEF is the federal financial consumer protection agency and its guidance is practical and verifiable. | We used it to describe standard leasing steps and common deposit practices. We used it to keep advice consumer-safe for non-professional readers. |
| CDMX Rented Housing Indicators | It clearly links back to INEGI ENIGH and provides a clean, interpretable rental-tenure metric. | We used it to illustrate that renting is structurally significant in Mexico's largest metro market. We used it to support the argument that renter demand is real when discussing vacancy. |
| SEDATU SNIIV Housing Data | SEDATU is the federal urban development ministry and SNIIV is its official housing information system. | We used it as an official pointer for housing-credit and housing-system data to understand supply constraints. We used it as a triangulation source when discussing structural supply limits affecting rents. |
| Real Estate Market Analysis | Real Estate Market is a respected industry publication covering Mexico's property sector. | We used it to understand regional price variations across Mexico's major cities. We used it to validate that yield opportunities differ substantially by metro area. |
| El País Gentrification Reporting | El País is a major international newspaper with credible Mexico City real estate coverage. | We used it to understand emerging neighborhood dynamics and gentrification trends. We used it to identify areas where prices are rising relative to established premium zones. |
| ABC Noticias Monterrey Metro Coverage | ABC Noticias provides local reporting on Monterrey infrastructure projects with verifiable progress updates. | We used it to track Metro Lines 4 and 6 progress ahead of the 2026 World Cup. We used it to identify neighborhoods that may benefit from improved transit connectivity. |
| Obras Expansion Housing Supply Analysis | Obras Expansion is a respected business publication covering construction and real estate development. | We used it to understand housing supply constraints in Mexico City. We used it to explain why limited new construction can support rent levels in central neighborhoods. |
Get the full checklist for your due diligence in Mexico
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.