Authored by the expert who managed and guided the team behind the Peru Property Pack
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If you're considering buying a rental property in Peru, understanding the actual returns you can expect is essential before making any decision.
In this article, we break down the current rental yields across Peru's residential market, including how they vary by neighborhood and property type.
We constantly update this blog post with fresh data, so you always get the latest picture of rental returns in Peru.
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 Peru.
Insights
- Peru's average gross rental yield of around 6% in early 2026 places it among the more attractive Latin American markets for income-focused investors.
- Lima's Lince district delivers yields near 7%, roughly 1.7 percentage points higher than upscale Pueblo Libre, despite both being established neighborhoods.
- The gap between gross and net yields in Peru typically runs 1.5 to 2.5 percentage points, mainly due to the 5% effective rental income tax and vacancy buffers.
- Smaller apartments (studios and one-bedrooms) in Lima consistently outperform larger units on yield, often achieving 6.5% to 7.5% gross compared to 4.5% to 6.5% for four-bedroom units.
- Peru's price-to-rent ratio of about 16.5 years means investors typically recover their purchase price through rent in under 17 years, faster than many comparable markets.
- Institutional multifamily buildings in Lima Moderna stabilize at 80% to 95% occupancy, suggesting a realistic vacancy buffer of 3 to 5 weeks per year for most landlords.
- Premium districts like Miraflores and San Isidro maintain moderate yields (5.9% to 6.2%) because strong rental demand keeps pace with higher property prices.
- Property management in Peru typically costs 8% to 10% of monthly rent, plus a tenant placement fee of 50% to 100% of one month's rent.
What are the rental yields in Peru as of 2026?
What's the average gross rental yield in Peru as of 2026?
As of early 2026, the average gross rental yield in Peru sits at approximately 6.0%, which means landlords typically collect about 6% of their property's value in annual rent before expenses.
Most residential properties in Peru fall within a realistic gross yield range of 5.3% to 7.0%, depending on location, property type, and how well the unit matches local renter demand.
Peru's 6% average gross yield compares favorably to many Latin American markets and aligns closely with what international property databases report for the country and its capital, Lima.
The single most important factor influencing gross rental yields in Peru right now is location within Lima, where district-level differences can swing yields by nearly two percentage points based on how property prices relate to achievable rents.
What's the average net rental yield in Peru as of 2026?
As of early 2026, the average net rental yield in Peru is approximately 4.0%, which represents what landlords actually keep after accounting for taxes, vacancy, and operating costs.
The typical difference between gross and net yields in Peru runs about 1.5 to 2.5 percentage points, meaning a property earning 6% gross will usually net somewhere between 3.5% and 4.5%.
The expense that most significantly reduces gross yield in Peru is the combination of rental income tax (effectively 5% of gross rent under SUNAT's first-category rules) and the vacancy buffer (typically 6% to 10% of annual rent for turnover).
Most standard investment properties in Peru deliver net yields in the 3.2% to 4.8% range, with the spread depending on whether you self-manage or hire a property manager and how much vacancy your specific location experiences.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Peru.
We made this infographic to show you how property prices in Peru 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 Peru in 2026?
In Peru's rental market in 2026, a gross yield of 6.5% or higher is generally considered "good" by local investors, while anything above 7% is viewed as very strong performance.
The threshold that separates average properties from high performers in Peru is typically around the 6.5% gross mark, since the market average hovers near 6%, and a net yield above 4.5% after realistic expenses signals a genuinely profitable investment.
How much do yields vary by neighborhood in Peru as of 2026?
As of early 2026, gross rental yields in Peru's major districts vary by roughly 1.7 percentage points, ranging from about 5.3% in lower-yield areas to around 7.0% in the highest-yield neighborhoods.
The neighborhoods delivering the highest rental yields in Peru tend to be centrally located districts with strong professional renter demand, such as Lince (around 7.0%), San Miguel (around 6.5%), Surquillo (around 6.5%), and Magdalena del Mar (around 6.6%).
The lowest-yield areas in Peru are typically upscale, owner-occupier-heavy districts where purchase prices outpace rental rates, including Pueblo Libre (around 5.3%), La Molina (around 5.5%), San Borja (around 5.6%), and Santiago de Surco (around 5.6%).
The main reason yields vary so much across Peru's neighborhoods is that property prices don't always move in lockstep with rents, so some expensive districts command high enough rents to maintain decent yields while others are priced more for lifestyle than rental income.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Peru.
How much do yields vary by property type in Peru as of 2026?
As of early 2026, gross rental yields in Peru range from about 4% for standalone houses in premium areas to 7.5% for well-located compact apartments, creating a spread of roughly 3.5 percentage points across property types.
The property type currently delivering the highest average gross rental yield in Peru is studios and one-to-two-bedroom apartments, which typically achieve yields between 5.5% and 7.5% because tenants pay a premium per square meter for location and amenities.
The property type with the lowest average gross yield in Peru is larger family houses, which often yield just 4% to 6% because their higher purchase prices (driven partly by land value) aren't matched by proportionally higher rents.
The key reason yields differ between property types in Peru is that rent per square meter tends to be higher for smaller, efficient units, while larger properties carry land costs and maintenance burdens that don't translate into equivalent rental premiums.
By the way, you might want to read the following:
What's the typical vacancy rate in Peru as of 2026?
As of early 2026, the typical residential vacancy rate in Peru translates to about 6% to 10% of annual rental income lost, which works out to roughly 3 to 5 weeks of vacancy per year for most landlords.
Vacancy rates across Peru's neighborhoods range from as low as 4% to 6% in high-demand central areas like Miraflores and San Isidro, up to 10% to 12.5% in less liquid locations or for larger family-sized units.
The main factor driving vacancy rates in Peru is tenant turnover and the time needed to re-lease, which depends heavily on location, unit size, and how well the property matches what renters in that specific area are looking for.
Peru does not publish a single official national vacancy statistic, but institutional multifamily buildings in Lima stabilize at 80% to 95% occupancy, suggesting vacancy levels are broadly in line with other urban Latin American markets.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Peru.
What's the rent-to-price ratio in Peru as of 2026?
As of early 2026, the average rent-to-price ratio in Peru is approximately 0.5% per month (or about 6% annually), meaning monthly rent equals roughly half a percent of the property's purchase price.
A rent-to-price ratio of 0.5% monthly or higher is generally considered favorable for buy-to-let investors in Peru, and this ratio is essentially the same number as gross rental yield expressed on a monthly rather than annual basis.
Peru's rent-to-price ratio compares well to many Latin American capitals, sitting in a similar range to cities like Bogota and above pricier markets like Santiago, making it relatively attractive for income-focused property investment.
We have made this infographic to give you a quick and clear snapshot of the property market in Peru. 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 Peru give the best yields as of 2026?
Where are the highest-yield areas in Peru as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Peru are Lince, San Miguel, and Surquillo, all located in Lima's central urban core where professional renter demand runs strong.
These high-yield Lima districts deliver average gross rental yields in the 6.5% to 7.0% range, with Lince often reaching toward the top of that band due to its central location and relatively affordable entry prices.
What these high-yield areas share is excellent accessibility to Lima's main employment centers, a steady base of young professional and student renters, and property prices that haven't outpaced rental growth the way more exclusive districts have.
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 Peru.
Where are the lowest-yield areas in Peru as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Peru are Pueblo Libre, La Molina, and San Borja, all established districts where high property prices relative to achievable rents compress investor returns.
These low-yield Lima areas typically deliver gross rental yields in the 5.3% to 5.6% range, roughly 1.5 percentage points below the city average.
The main reason yields are compressed in these areas of Peru is that they attract more owner-occupiers than renters, pushing up purchase prices while rental demand remains moderate compared to more central, transit-connected districts.
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 Peru.
Which areas have the lowest vacancy in Peru as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Peru are Miraflores, San Isidro, and Jesus Maria, all of which benefit from year-round rental demand that keeps units occupied.
These low-vacancy areas in Lima typically see vacancy rates in the 4% to 6% range, translating to just 2 to 3 weeks of downtime per year for well-priced units.
The main demand driver keeping vacancy low in these areas is the concentration of corporate offices, embassies, and service amenities that attract executives, expats, and professionals who need convenient, walkable locations.
The trade-off investors face when targeting these low-vacancy areas in Peru is that property prices are higher, which means accepting a lower gross yield (often around 5.5% to 6.2%) in exchange for more stable occupancy and reliable cash flow.
Which areas have the most renter demand in Peru right now?
The three neighborhoods currently experiencing the strongest renter demand in Peru are Miraflores, Surquillo, and Lince, where a combination of location, lifestyle amenities, and relative affordability keeps tenant interest high.
The renter profile driving most of the demand in these Lima areas is young professionals aged 25 to 40, many of whom work in the San Isidro business district and prefer walkable neighborhoods with restaurants, transit access, and modern apartment buildings.
In these high-demand neighborhoods, well-priced rental listings typically get filled within 2 to 4 weeks, and premium units in sought-after buildings can find tenants even faster during peak moving seasons.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Peru.
Which upcoming projects could boost rents and rental yields in Peru as of 2026?
As of early 2026, the top three upcoming projects expected to boost rents in Peru are new institutional multifamily buildings like Nomad Ricardo Palma in Miraflores, Nomad Juan de Arona in San Isidro, and Sky V in Lince, which are raising quality standards and amenity expectations.
The neighborhoods most likely to benefit from these projects include Miraflores, San Isidro, Lince, and Pueblo Libre, where new professional-grade rental supply is attracting tenants who might otherwise have looked elsewhere.
Once these institutional projects reach stabilization, investors in nearby buildings might realistically expect rent increases of 3% to 8% as the overall neighborhood perception improves and competition for quality tenants intensifies.
You'll find our latest property market analysis about Peru here.
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What property type should I buy for renting in Peru as of 2026?
Between studios and larger units in Peru, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments perform best in Peru in terms of both rental yield and occupancy, thanks to strong demand from young professionals and single renters in Lima's central districts.
Studios and one-bedrooms in Peru typically achieve gross rental yields of 6% to 7.5% (roughly 450 to 560 soles, 120 to 150 USD, or 110 to 140 EUR per square meter annually), while larger three-to-four-bedroom units usually yield 4.5% to 6%.
The main factor explaining why smaller units outperform in Peru is that tenants pay more per square meter for location and convenience, so compact apartments in central Lima generate higher relative rents than the extra space in larger units commands.
One scenario where larger units become the better investment in Peru is when targeting stable family tenants who sign longer leases and cause less turnover, which can offset lower yields with reduced vacancy and management costs.
What property types are in most demand in Peru as of 2026?
As of early 2026, the most in-demand property type in Peru is well-located one-to-two-bedroom apartments near employment centers, public transit, and everyday services.
The top three property types ranked by current renter demand in Peru are: first, compact modern apartments (one-to-two bedrooms); second, family-practical three-bedroom apartments or townhouses near schools; and third, furnished units in Lima Moderna targeting corporate or expat tenants.
The primary trend driving this demand pattern in Peru is the growth in smaller households, with more young professionals and single renters prioritizing mobility, amenities, and walkable urban locations over large living spaces.
One property type currently underperforming in demand in Peru is large standalone houses in peripheral residential areas, which often sit vacant longer because their higher rents and maintenance requirements don't match what most active renters are seeking.
What unit size has the best yield per m² in Peru as of 2026?
As of early 2026, the unit size delivering the best gross rental yield per square meter in Peru is compact apartments between 40 and 70 square meters, which hit the sweet spot between affordability and functionality for renters.
Units in this optimal size range in Peru typically generate gross yields of 6.5% to 7.5%, translating to roughly 480 to 560 soles (125 to 150 USD, or 115 to 140 EUR) per square meter annually in prime Lima locations.
The main reason both smaller studios and larger apartments tend to have lower yield per square meter is that tiny units can be harder to rent consistently, while bigger units spread tenant rent budgets over more space without proportionally higher payments.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Peru.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Peru 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 Peru as of 2026?
What are typical property taxes and recurring local fees in Peru as of 2026?
As of early 2026, the annual property tax (Impuesto Predial) for a typical rental apartment in Peru ranges from about 0.2% to 0.6% of the assessed property value, which for a mid-market Lima apartment might mean 1,500 to 4,500 soles (400 to 1,200 USD, or 370 to 1,100 EUR) per year.
Beyond property tax, landlords in Peru must budget for municipal service fees called "arbitrios," which cover trash collection, parks, and local security, and these can add another 500 to 2,000 soles (130 to 530 USD, or 120 to 490 EUR) annually depending on the district.
Together, property taxes and recurring fees typically represent about 3% to 6% of gross rental income in Peru, making them a meaningful but manageable drag on net yield.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Peru.
What insurance, maintenance, and annual repair costs should landlords budget in Peru right now?
The estimated annual landlord insurance cost for a typical rental property in Peru runs about 0.1% to 0.2% of property value, which translates to roughly 750 to 1,500 soles (200 to 400 USD, or 185 to 370 EUR) for a mid-market apartment.
Landlords in Peru should budget 0.7% to 1.2% of property value annually for maintenance and repairs, with newer buildings toward the lower end and older coastal properties (which face humidity and salt air) toward the higher end.
The type of repair that most commonly catches Peru landlords off guard is water damage and plumbing issues, especially in older Lima buildings where pipes deteriorate faster in the humid climate.
Combined, insurance, maintenance, and repairs in Peru typically total 0.8% to 1.4% of property value annually, or roughly 6,000 to 10,500 soles (1,600 to 2,800 USD, or 1,480 to 2,590 EUR) for a property worth 750,000 soles.
Which utilities do landlords typically pay, and what do they cost in Peru right now?
In Peru's long-term rental market, tenants typically pay their own electricity, water, gas, and internet, while landlords usually only cover building-level HOA fees and sometimes a common-area water component depending on building rules.
When landlords do cover utilities (common in furnished or short-term rentals), monthly costs run approximately 200 to 400 soles (55 to 105 USD, or 50 to 100 EUR) for a typical apartment, though this varies significantly with consumption and regulated tariff adjustments.
What does full-service property management cost, including leasing, in Peru as of 2026?
As of early 2026, full-service property management in Peru typically costs 8% to 10% of monthly rent, which for a 2,500-soles-per-month apartment means 200 to 250 soles (55 to 70 USD, or 50 to 65 EUR) monthly.
On top of ongoing management, landlords in Peru can expect a tenant-placement or leasing fee of 50% to 100% of one month's rent each time a new tenant is found, adding 1,250 to 2,500 soles (330 to 660 USD, or 305 to 615 EUR) per turnover.
What's a realistic vacancy buffer in Peru as of 2026?
As of early 2026, landlords in Peru should set aside about 8% of annual rental income as a vacancy buffer, which provides a reasonable cushion for turnover and re-leasing time.
In practical terms, this means most Peru landlords experience roughly 3 to 5 weeks of vacancy per year, though well-located units in high-demand areas like Miraflores may achieve closer to 2 to 3 weeks.
Buying real estate in Peru 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 Peru, 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 |
|---|---|---|
| Central Reserve Bank of Peru (BCRP) | It's Peru's central bank, publishing consistent, method-documented market indicators for over a decade. | We used its sale-price, rent, and price-to-rent ratio tables to compute gross yields and neighborhood-level variation across Lima's 12 tracked districts. We also used its methodology notes to explain what the data represents. |
| Global Property Guide | It's a widely used international real estate data publisher that clearly states its yield methodology. | We used it as an external cross-check on Peru, Lima, and Arequipa gross yields and unit-size differences. We also referenced its methodology section to explain the median rent times 12 divided by median price approach. |
| SUNAT - Rental Income Rules | It's Peru's tax authority and the official reference for rental income tax rules. | We used it to pin down how rental income is defined and the 6% of autoavaluo presumption rule. We also used it to anchor the landlord income-tax component of net yield. |
| SUNAT - Tax Calculation Guide 2025 | It's an official SUNAT calculation guide in a simple, auditable format. | We used it to translate Peru's rental tax into a practical effective rate (the 6.25% on net after 20% deduction equals about 5% of gross rent). We then applied that rate in the net-yield estimate. |
| MEF - Property Tax Guide | It's published by Peru's Ministry of Economy and Finance, summarizing the municipal property tax framework. | We used it to anchor the progressive property tax rates (0.2%, 0.6%, 1.0% by UIT brackets) and payment timing. We then converted those rules into a realistic annual drag on net yield. |
| OSINERGMIN - Electricity Tariffs | It's Peru's energy regulator and the official source for regulated electricity tariffs. | We used it to ground electricity as a regulated cost and avoid guessing at utility pricing. We then translated that into the landlord-paid-utilities scenarios section. |
| OSINERGMIN - Tariff Update Note | It's an official OSINERGMIN bulletin explaining regulated tariff adjustments. | We used it to support that household electricity pricing moves with regulated updates, not arbitrary changes. We then reflected that uncertainty by giving ranges rather than single fixed bills. |
| SUNASS - Sedapal Tariff Hub | It's the water regulator's official publication page collecting resolutions and technical reports. | We used it to ground water and sewer pricing as regulated and to reference the formal rebalance process. We then used this to justify treating water as a periodically updated cost line. |
| El Peruano - Official Gazette | It's Peru's official gazette where tariff-related legal notices are formally published. | We used it as the hard legal anchor that tariff changes are officially recorded. We then avoided relying on informal commentary for water pricing changes. |
| INEI - ENAHO Survey | It's Peru's national statistics office describing the country's flagship household survey. | We used it to ground what households pay and do as a credible lens on renting prevalence and typical spending. We then used it as a triangulation anchor for vacancy buffers and demand drivers. |
| Peru Open Data - ENAHO Dataset | It's the official open-data portal used by Peru's public institutions. | We used it to validate that ENAHO is available as auditable microdata, not a black box. We then relied on ENAHO conceptually for household reality checks around rents and utility burdens. |
| El Comercio - Multifamily Reporting | It's a leading national newspaper that clearly attributes figures to named market reports and operator quotes. | We used it to triangulate real-world occupancy and lease-up patterns and rent-per-square-meter ranges in Lima Moderna. We then converted those occupancy ranges into practical vacancy buffer guidance. |
| Binswanger Peru | It's a recognized commercial real estate advisory, and this piece summarizes a reported pipeline. | We used it only as secondary context for institutional rental supply growth, not as our main yield dataset. We kept our yield math anchored to BCRP and Global Property Guide instead. |
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