Authored by the expert who managed and guided the team behind the Uruguay Property Pack
Yes, the analysis of Montevideo's property market is included in our pack
If you're thinking about buying property in Montevideo to rent out, you're probably wondering what kind of returns you can realistically expect.
This blog post breaks down the current rental yields across Montevideo's neighborhoods and property types, so you can make a more informed decision.
We constantly update this article with fresh data, so you're always looking at the latest numbers.
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 Montevideo.
Insights
- Montevideo's citywide average gross rental yield sits around 6% in early 2026, which translates to roughly one month of rent for every two years of property value.
- The yield gap between Montevideo's coastal barrios and outer neighborhoods can reach 8 percentage points, with Manga yielding around 13% versus Punta Gorda at about 5%.
- Studios and one-bedroom apartments in Montevideo typically deliver the highest yield per square meter because the renter pool of students and young professionals is consistently deep.
- Montevideo landlords should budget around 1.5 to 2 percentage points of gross yield for recurring costs like property taxes, insurance, and maintenance reserves.
- The city's official rent adjustment framework ties increases to inflation, which helps keep gross yields from swinging wildly from quarter to quarter.
- Montevideo's Census 2023 showed about 9.6% of dwellings unoccupied, but the actual rental vacancy that landlords experience is closer to 4% to 6% for properly priced units.
- Higher-yield outer barrios like Casabó and Nuevo París come with longer vacancy periods, so the extra gross return often shrinks once you factor in more turnover.
- Public projects like the Rambla Sur upgrades and Ciudad Vieja incentives could push rents higher in Barrio Sur, Palermo, and the historic center over the next few years.
What are the rental yields in Montevideo as of 2026?
What's the average gross rental yield in Montevideo as of 2026?
As of early 2026, the average gross rental yield for residential property in Montevideo is estimated at around 6%.
Most typical apartments, houses, and townhouses in Montevideo fall within a realistic gross yield range of 5.5% to 6.5%, depending on location and condition.
Compared to other Latin American capitals, Montevideo's gross yields are moderate but stable, reflecting the city's reputation for lower volatility and stronger legal protections for property owners.
The single most important factor influencing gross yields in Montevideo right now is the coastal value premium, where properties near the Rambla command higher prices that compress yields, while more affordable outer barrios offer higher returns.
What's the average net rental yield in Montevideo as of 2026?
As of early 2026, the average net rental yield in Montevideo is estimated at around 4.1% after accounting for all typical landlord expenses.
The gap between gross and net yields in Montevideo is usually about 1.5 to 2 percentage points, which is fairly standard for a capital city with formal tax structures.
The expense category that most significantly reduces gross yield in Montevideo is the combination of recurring property taxes, specifically the Contribución Inmobiliaria and the Impuesto de Primaria, plus potential income tax on rental earnings under Uruguay's IRPF framework.
Most standard investment properties in Montevideo deliver net yields in the 3.6% to 4.6% range, with newer buildings in well-managed complexes landing at the higher end thanks to lower maintenance costs.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Montevideo.
We made this infographic to show you how property prices in Uruguay 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 Montevideo in 2026?
Local investors in Montevideo generally consider a gross rental yield of 5.5% to 6.5% to be "good" because it matches the city average while offering reasonable liquidity and tenant quality.
Properties that break above 7% gross are typically considered high-performing in Montevideo, though yields of 10% or more often come with trade-offs like higher vacancy risk or properties that need more upkeep.
How much do yields vary by neighborhood in Montevideo as of 2026?
As of early 2026, the spread in gross rental yields between Montevideo's highest-yield and lowest-yield neighborhoods is roughly 8 percentage points, ranging from about 5% to 13%.
The highest rental yields in Montevideo are typically found in more affordable outer barrios like Manga, Casabó, Las Acacias, and Nuevo París, where lower purchase prices push gross returns into the 10% to 13% range.
The lowest rental yields appear in premium coastal neighborhoods like Punta Gorda, Punta Carretas, and Parque Rodó, where strong buyer demand drives prices up and compresses yields to around 5%.
The main reason yields vary so much across Montevideo is that property prices in coastal areas have risen faster than rents, while outer barrios remain affordable to buy but still command decent monthly rents from working-class tenants.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Montevideo.
How much do yields vary by property type in Montevideo as of 2026?
As of early 2026, gross rental yields in Montevideo range from about 4% for large premium houses up to 7% or more for studios and one-bedroom apartments, creating a spread of roughly 1 to 3 percentage points based on property type.
Studios and one-bedroom apartments currently deliver the highest average gross rental yields in Montevideo because they attract the deepest renter pool, including students, young professionals, and newcomers to the city.
Large detached houses in premium zones like Carrasco and Punta Gorda tend to deliver the lowest gross yields because their purchase prices rise faster than the rents they can command.
The key reason yields differ between property types in Montevideo is that smaller units have a lower absolute price tag but still fetch strong rents relative to size, while larger homes carry a lifestyle premium that buyers pay for but renters often do not.
By the way, you might want to read the following:
What's the typical vacancy rate in Montevideo as of 2026?
As of early 2026, the estimated rental vacancy rate in Montevideo is around 4% to 6% for properly priced long-term residential units in decent condition.
Vacancy rates vary across Montevideo neighborhoods, with coastal and central barrios experiencing tighter markets and some outer areas seeing vacancy closer to 8% or even higher during tenant turnover.
The main factor driving vacancy rates in Montevideo is pricing, as units priced at market rents in high-demand areas fill quickly, while overpriced or poorly located units can sit empty for months.
Montevideo's rental vacancy is lower than the national average because the capital concentrates most of Uruguay's jobs, universities, and services, which keeps renter demand consistently strong.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Montevideo.
What's the rent-to-price ratio in Montevideo as of 2026?
As of early 2026, the average rent-to-price ratio in Montevideo is about 0.50% per month, meaning a property worth USD 120,000 would typically rent for around USD 600 monthly.
A rent-to-price ratio of 0.50% or higher is generally considered favorable for buy-to-let investors in Montevideo, and since annual rent-to-price is simply gross yield by another name, hitting this threshold means you're at the city's 6% average.
Montevideo's rent-to-price ratio is competitive compared to other regional capitals like Buenos Aires or Santiago, where property prices have often risen faster than rents, compressing ratios below 0.40%.
We have made this infographic to give you a quick and clear snapshot of the property market in Uruguay. 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 Montevideo give the best yields as of 2026?
Where are the highest-yield areas in Montevideo as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Montevideo are Manga at around 13%, Casabó at about 12%, and Las Acacias at roughly 11.5%.
These top-performing outer barrios typically deliver gross rental yields in the 10% to 13% range, with Colón Sureste and Nuevo París also landing above 10%.
The main characteristic these high-yield areas share is affordability, as lower purchase prices relative to rents push yields up, while proximity to major avenues and transit lines keeps tenant demand steady.
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 Montevideo.
Where are the lowest-yield areas in Montevideo as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Montevideo are Punta Gorda at around 4.9%, Punta Carretas at about 5%, and Parque Rodó also at roughly 5%.
These premium coastal and central barrios typically deliver gross rental yields in the 4.9% to 5.5% range, with Cordón and Pocitos sitting just above 5%.
The main reason yields are compressed in these areas is strong buyer demand that bids up property prices faster than rents can follow, creating a classic "lifestyle premium" effect.
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 Montevideo.
Which areas have the lowest vacancy in Montevideo as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in Montevideo include Cordón, Pocitos, and Tres Cruces, where rental units typically fill within days of listing.
These low-vacancy areas generally see rental vacancy rates below 3%, meaning landlords rarely experience more than one or two weeks of downtime between tenants.
The main demand driver keeping vacancy low in these areas is the concentration of universities, offices, and transit hubs that attract students, young professionals, and commuters who need well-connected housing.
The trade-off investors face when targeting these low-vacancy neighborhoods is lower gross yields, since the same strong demand that fills units quickly also pushes property prices up and compresses returns.
Which areas have the most renter demand in Montevideo right now?
The three neighborhoods currently experiencing the strongest renter demand in Montevideo are Cordón, Pocitos, and Centro, where listings rarely stay on the market for more than a week.
The typical renter profile driving demand in these areas includes university students in Cordón and Parque Rodó, young professionals in Pocitos and Buceo, and service workers and newcomers in Centro and Aguada.
Rental listings in these high-demand neighborhoods typically get filled within 5 to 10 days when priced at market rates, and well-presented units often receive multiple inquiries on the first day.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Montevideo.
Which upcoming projects could boost rents and rental yields in Montevideo as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Montevideo are the Rambla Sur upgrades (Proyecto "Late la Rambla"), the Ciudad Vieja revitalization incentives, and the ongoing Port of Montevideo expansion.
The neighborhoods most likely to benefit from these projects include Barrio Sur, Palermo, and lower Centro from the Rambla upgrades, Ciudad Vieja from the municipal incentives, and Aguada and Capurro from the port-related employment growth.
Once these projects are completed, investors might realistically expect rent increases of 5% to 15% in the most directly affected pockets, though timing will depend on how quickly amenities and safety improvements materialize.
You'll find our latest property market analysis about Montevideo here.
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What property type should I buy for renting in Montevideo as of 2026?
Between studios and larger units in Montevideo, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments outperform larger units in Montevideo when it comes to both rental yield and occupancy rates.
Studios in Montevideo typically deliver gross yields of 6% to 8% (around UYU 36,000 to 48,000, USD 850 to 1,150, or EUR 800 to 1,050 annually per UYU 600,000 invested), while larger two to three bedroom units usually yield 5% to 6%.
The main factor explaining this difference is that smaller units attract the deepest renter pool in Montevideo, including university students, young professionals, and newcomers, which keeps vacancy low and competition for units high.
However, larger units become the better investment choice when targeting families or long-term expats in neighborhoods like Malvín, Unión, or Carrasco, where these tenants pay premium rents and stay for years.
What property types are in most demand in Montevideo as of 2026?
As of early 2026, unfurnished one to two bedroom apartments in well-connected barrios are the most in-demand property type for renters in Montevideo.
The top three property types ranked by current tenant demand in Montevideo are one-bedroom apartments near transit and universities, two-bedroom family units in middle-ring neighborhoods, and studios in central locations like Cordón and Centro.
The primary demographic trend driving this demand pattern is Montevideo's growing population of young professionals and students who prioritize convenience and affordability over space.
Large detached houses in premium zones are currently underperforming in rental demand because most renters cannot afford them, and buyers in those areas prefer to own rather than rent.
What unit size has the best yield per m² in Montevideo as of 2026?
As of early 2026, units in the 30 to 50 square meter range deliver the best gross rental yield per square meter in Montevideo because they hit the sweet spot between affordability and livability.
This optimal unit size typically generates gross rental yields of around 6% to 8% per square meter (roughly UYU 10,000 to 14,000, USD 240 to 330, or EUR 220 to 300 per square meter annually in high-demand barrios).
Smaller micro-studios below 25 square meters can struggle with tenant quality and turnover, while larger units above 70 square meters dilute rent per square meter because total rents do not scale proportionally with size.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Montevideo.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Uruguay 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 Montevideo as of 2026?
What are typical property taxes and recurring local fees in Montevideo as of 2026?
As of early 2026, the estimated annual property taxes for a typical rental apartment in Montevideo run between UYU 15,000 and 40,000 (USD 350 to 950, or EUR 320 to 870), depending on the property's cadastral value.
Beyond property taxes, Montevideo landlords must also budget for the Impuesto de Primaria (primary education tax) and potentially IRPF income tax on rental earnings, which together can add another UYU 10,000 to 30,000 (USD 240 to 710, EUR 220 to 650) annually.
These taxes and fees typically represent around 0.2% to 0.5% of the property's market value per year, which translates to roughly 3% to 8% of gross rental income for most Montevideo apartments.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Montevideo.
What insurance, maintenance, and annual repair costs should landlords budget in Montevideo right now?
The estimated annual landlord insurance cost for a typical rental apartment in Montevideo is between UYU 5,000 and 12,500 (USD 120 to 300, EUR 110 to 275), depending on coverage level and building type.
The recommended annual maintenance and repair budget in Montevideo is around 0.5% to 1% of property value, which for a USD 100,000 apartment means setting aside roughly USD 500 to 1,000 (UYU 21,000 to 42,000, EUR 460 to 920) each year.
The repair expense that most commonly catches Montevideo landlords off guard is plumbing and electrical issues in older central buildings, where aging infrastructure can require sudden, costly interventions.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Montevideo is around UYU 30,000 to 55,000 (USD 700 to 1,300, EUR 640 to 1,200) for a typical apartment.
Which utilities do landlords typically pay, and what do they cost in Montevideo right now?
For standard long-term residential leases in Montevideo, tenants typically pay all utilities, but landlords who offer furnished or "all-inclusive" rentals should expect to cover electricity, water, and sometimes internet.
If landlords pay utilities in Montevideo, the estimated monthly cost for a typical apartment is around UYU 4,000 to 8,000 (USD 95 to 190, EUR 87 to 175) for electricity and water combined, with heavier usage pushing costs higher in winter months.
What does full-service property management cost, including leasing, in Montevideo as of 2026?
As of early 2026, full-service property management in Montevideo typically costs between 5% and 8% of monthly rent plus VAT, which for a UYU 40,000 rent means around UYU 2,000 to 3,500 (USD 48 to 83, EUR 44 to 76) per month.
On top of ongoing management, leasing or tenant-placement fees in Montevideo usually run from half a month to one full month of rent (UYU 20,000 to 40,000, USD 475 to 950, EUR 435 to 870) each time a new tenant is found.
What's a realistic vacancy buffer in Montevideo as of 2026?
As of early 2026, landlords in Montevideo should set aside around 8% to 10% of annual rental income as a vacancy buffer, which covers roughly one month of downtime per year.
In practice, Montevideo landlords typically experience about 3 to 5 weeks of vacancy per year in well-located properties, though outer barrios with higher yields can see 6 to 8 weeks between tenants.
Buying real estate in Montevideo 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 Montevideo, 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 |
|---|---|---|
| INE - IAI Alquileres | It's Uruguay's official statistics agency publishing standardized rental market indicators. | We used it to anchor typical rent levels and market size via the official rental contract series. We treat it as the "reality check" against private portal data. |
| INE - IAI Compraventa | It's the official dataset for recorded property transactions and price medians in Uruguay. | We used it to ground sale price levels in actual registered transactions. We use it to sanity-check portal-based sale price snapshots used in yield estimates. |
| INE - Indicadores de Mercado | It's INE's official entry point consolidating methodologies and latest releases. | We used it to ensure we're referencing the correct official series. We use it to cross-check that our rent and price inputs match INE's residential scope. |
| INE - Censo 2023 Viviendas | It's the official census readout on occupancy versus vacancy by department in Uruguay. | We used it as an upper bound for vacancy and empty home rates in Montevideo. We then translated that into a realistic rental vacancy buffer. |
| InfoCasas - Informe Rentabilidad | It's a major Uruguayan property portal publishing methodology-backed yield comparisons by barrio. | We used it as the neighborhood yield map covering 36 barrios. We adjusted it forward to early 2026 using official rent dynamics and conservative assumptions. |
| DGI - Impuesto de Primaria | It's the official tax authority explaining the primary education property tax in Uruguay. | We used it to model owner-paid recurring taxes that reduce net yield. We treat this as a non-negotiable line item in net yield math. |
| DGI - IRPF Rentas Inmobiliarias | It's the official guide to how rental income is taxed for individuals in Uruguay. | We used it to model the income tax bite on rental profits. We use it to convert gross yield to net yield under a typical landlord scenario. |
| IMM - Contribución Inmobiliaria | It points to IMM's official municipal property tax structure used in Montevideo. | We used it to confirm the recurring municipal property tax exists and is paid in installments. We incorporate it as another recurring drag on net yield. |
| MEF - Indicadores URA | It's the government source for rent adjustment references used in Uruguay. | We used it to frame why Montevideo rents move in a rule-based, inflation-linked way. We use this to keep our early 2026 adjustments realistic. |
| IMPO - Decreto-Ley 14219 | It's the official legal database for Uruguay's housing rent law framework. | We used it to anchor the idea that rent setting and adjustments are governed by formal rules. We use it to justify conservative rent growth assumptions. |
| UTE - Tarifas Residenciales | It's the national electricity utility publishing official tariff tables. | We used the published rates per kWh to estimate typical landlord-paid electricity in furnished cases. We use it to size utilities risk when owners cover services. |
| BSE - Seguro de Hogar | It's Uruguay's state insurer and a reference point for insurance products and pricing logic. | We used it to anchor that landlord insurance is readily available. We converted that into a realistic annual budget range used in net yield math. |
| IMM - Proyecto Late la Rambla | It's the city government describing a major public realm investment plan. | We used it to identify micro-areas likely to see amenity upgrades. We treat it as a rent upside catalyst for specific pockets like Barrio Sur and Palermo. |
| IMM - Incentivos Ciudad Vieja | It's the municipality's official policy push to repopulate and upgrade Ciudad Vieja. | We used it to flag Ciudad Vieja as a regeneration story with potentially higher demand. We treat this as a medium-term rent support factor. |
| MTOP - Puerto de Montevideo | It's the transport ministry reporting on major port expansion works. | We used it to identify employment gravity shifts that could support rents in nearby barrios. We treat port-related job creation as a demand catalyst for Aguada and Capurro. |
| OSE - Decreto Tarifario 2026 | It's the official water utility's tariff framework for 2026. | We used it to estimate landlord-paid water costs in all-inclusive rental scenarios. We keep this estimate conservative and usage-based. |
| Telenoche - Viviendas Desocupadas | It provides context on the share of empty homes available for rent or sale nationally. | We used it to understand that not all empty homes are rental vacancies. We translate this into a more realistic rental vacancy estimate for Montevideo. |
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