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

This content is for informational purposes only and does not constitute financial, tax, or legal advice. Past performance and projected returns are not guarantees of future results. Always consult with qualified professionals before making investment decisions.