What rental income can I expect from a property in Punta Cana?

A 2-bedroom furnished apartment in Punta Cana can generate $2,500-$4,000 per month through short-term vacation rentals during high season, with annual average gross income of $28,000-$40,000. Long-term rentals are more stable at $1,400-$1,800/month. Net yields typically range from 6-9% after expenses.

Is short-term or long-term rental more profitable in the Dominican Republic?

Short-term rentals generally produce higher gross income (20-40% more) but also carry higher expenses including management fees (20%), cleaning costs, platform fees, and higher maintenance. Long-term rentals offer lower but more predictable income with fewer expenses. A mixed strategy can optimize returns by capturing high-season tourism rates while securing guaranteed income during slower months.

What is the CONFOTUR tax exemption for rental income?

The CONFOTUR (Consejo de Fomento Turistico) program exempts qualifying tourism-zone properties from the 27% income tax on rental earnings for up to 15 years. Most new developments in Punta Cana, Las Terrenas, Samana, Cabarete, and Puerto Plata qualify. This can increase net yields by 1-3 percentage points. Santo Domingo properties generally do not qualify.

How much do property management companies charge in the Dominican Republic?

Property management fees in the Dominican Republic range from 15% to 25% of gross rental income. Short-term/vacation rental management costs more (18-25%) due to guest coordination, check-ins, and cleaning logistics. Long-term rental management is typically 10-15%. Full-service management including maintenance, billing, and guest services averages 20%.

What occupancy rates should I expect for vacation rentals?

Occupancy varies significantly by season. High season (December-April) sees 70-85% occupancy in popular tourist areas. Shoulder season (May-July) averages 55-65%, and low season (August-November) drops to 35-50%. Premium properties with pools, beach access, and strong online reviews can achieve 10-15% higher occupancy than average.

Does furnishing a property increase rental income?

Yes. Furnished properties in the Dominican Republic command approximately 20% higher rent for long-term leases. For short-term rentals, furnishing is essentially mandatory. Quality furnishings, modern appliances, and amenities like a washer/dryer and fast WiFi can push nightly rates even higher. Budget $10,000-$25,000 for quality furnishing depending on property size.

What hidden costs should I consider for rental properties?

Beyond the expenses shown in the calculator, consider: initial furnishing costs, property tax (IPI, 1% annually on properties over RD$9.86M), legal and accounting fees, vacancy periods during repairs, currency exchange costs if you are based abroad, and marketing costs for direct bookings. Budget an additional 5-8% of gross income for these items.

Dominican Republic Rental Income Estimator

Estimate how much rental income your Dominican Republic property could generate. Compare short-term, long-term, and mixed rental strategies with seasonal occupancy modeling and detailed expense breakdowns.

How much rental income can a property in the Dominican Republic generate?

Rental income varies by location, property type, and strategy. A 2-bedroom apartment in Punta Cana can generate $2,500-$4,000/month through short-term rentals with 65-85% occupancy, or $1,400/month long-term. Net yields typically range from 5-9% after expenses. Use the calculator below for a detailed estimate.

Carlos MendezPublished: March 1, 2026Updated: March 4, 2026

Reviewed by Maria Santos

Rental Income Estimator

How Rental Estimates Are Calculated

1
Analyze Location-Specific Rental Rates
We use average nightly rates for short-term rentals and monthly rates for long-term rentals based on active listings in each Dominican Republic market. Rates vary significantly between tourist hotspots like Punta Cana and urban centers like Santo Domingo.
2
Model Seasonal Occupancy
The Dominican Republic has three rental seasons: high season (December-April) with 70-85% occupancy, shoulder season (May-July) at 55-65%, and low season (August-November) at 35-50%. We weight each season by duration to calculate realistic annual averages.
3
Calculate Gross Rental Income
For short-term rentals, we multiply nightly rates by occupancy rates. For long-term rentals, we use market-rate monthly rents. Mixed strategies blend both approaches. Furnished properties command a 20% premium on long-term rates.
4
Deduct Operating Expenses
We account for property management (15-20%), maintenance (2-3% of property value), utilities, cleaning costs for short-term rentals, Airbnb platform fees (3%), and property insurance (0.5%). These vary by rental strategy.
5
Compute Net Yield
Net yield is calculated as net annual income divided by property price, expressed as a percentage. This gives you the true return on your property investment after all operating expenses.

Rental Income Estimator FAQ

Este contenido es solo para fines informativos y no constituye asesoramiento financiero, fiscal o legal. El rendimiento pasado y las proyecciones de retorno no garantizan resultados futuros. Siempre consulte con profesionales calificados antes de tomar decisiones de inversion.