Authored by the expert who managed and guided the team behind the Hungary Property Pack
Yes, the analysis of Budapest's property market is included in our pack
Thinking about buying a property in Budapest to rent it out in 2026?
You're not alone, and the Budapest rental market has some unique twists that foreign investors need to understand before jumping in.
We constantly update this blog post to reflect the latest data and market conditions so you always have fresh information.
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 Budapest.
Insights
- Budapest's District VI (Terézváros) has completely banned short-term rentals starting January 1, 2026, affecting around 2,700 Airbnb apartments that must now pivot to long-term leases or be sold.
- A citywide moratorium on new short-term rental registrations runs through December 2026, meaning you cannot legally start a new Airbnb in Budapest regardless of which district you buy in.
- Budapest rents hit a "glass ceiling" of around 250,000 HUF per month in late 2025, with the Otthon Start Programme keeping downward pressure on asking rents into 2026.
- Gross rental yields in Budapest range from 4.5% to 5.2% for long-term rentals, but net yields drop to 2.7% to 3.6% after you factor in common charges, management, and taxes.
- Vacancy rates in Budapest sit around 4% citywide, with prime inner districts like District V seeing just 2% to 3% vacancy due to strong tenant demand.
- Furnished apartments in Budapest rent 15% to 25% faster than unfurnished ones, driven by expats and students who need turnkey solutions.
- The annual flat-rate tax on short-term rentals jumped from 38,400 HUF to 150,000 HUF per room, dramatically cutting into Airbnb net yields even where it remains legal.
- District VII (Erzsébetváros) now limits commercial accommodation to just 10% of any residential building's floor area, signaling more restrictions may come.
Can I legally rent out a property in Budapest as a foreigner right now?
Can a foreigner own-and-rent a residential property in Budapest in 2026?
As of early 2026, foreigners can legally own residential property in Budapest and rent it out, though the buying process differs depending on your nationality.
EU, EEA, and Swiss citizens can typically purchase Budapest apartments without special permits, while non-EU buyers usually need a government permit under Decree 251/2014 to acquire non-agricultural real estate.
The most common restriction foreigners face in Budapest is the administrative delay for non-EU citizens, where the permit approval process can take several months and requires submitting documentation to the local government office.
If you're not a local, you might want to read our guide to foreign property ownership in Budapest.
Do I need residency to rent out in Budapest right now?
You do not need to be a Hungarian resident to rent out a property in Budapest, which makes the city attractive to foreign investors who want to manage their rental remotely.
For tax purposes, you may not need a Hungarian tax identification number if you're a private individual landlord operating under NAV's simplified conditions, though this depends on how you structure your rental activity.
While there's no legal requirement for a Hungarian bank account, having a local HUF account is strongly recommended because most Budapest tenants prefer paying rent domestically without international transfer fees.
Managing a Budapest rental entirely from abroad is feasible if you hire a local property manager or have a trusted contact for keys, tenant issues, and maintenance coordination.
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What rental strategy makes the most money in Budapest in 2026?
Is long-term renting more profitable than short-term in Budapest in 2026?
As of early 2026, long-term renting is becoming the safer and often more profitable choice in Budapest because short-term rental regulations have tightened dramatically across the city.
A well-managed short-term rental in Budapest could previously generate 20% to 40% more gross income than a long-term lease, but the new 150,000 HUF per-room annual tax and the District VI ban have erased much of that advantage.
Short-term renting still financially outperforms long-term in tourist-heavy areas like District VII (Erzsébetváros) where Airbnb remains legal, but only if your property is already registered since no new licenses are being issued until 2027.
What's the average gross rental yield in Budapest in 2026?
As of early 2026, the average gross rental yield for residential properties in Budapest ranges from 4.5% to 5.2%, which positions the city competitively among Central European capitals.
Across different Budapest neighborhoods, gross yields range from around 4% in prime areas like District V (Belváros-Lipótváros) to 5.5% or higher in emerging districts like District VIII (Józsefváros).
Smaller units like studios and one-bedroom apartments typically achieve the highest gross yields in Budapest because they attract strong demand from students and young professionals while having lower purchase prices per square meter.
By the way, we have much more granular data about rental yields in our property pack about Budapest.
What's the realistic net rental yield after costs in Budapest in 2026?
As of early 2026, the realistic net rental yield after all costs for long-term rentals in Budapest ranges from 2.7% to 3.6%, while short-term rentals where legal can achieve 3.5% to 5.5% net but with much higher variability.
Most Budapest landlords actually experience net yields between 2.5% and 4% depending on their building's age, location, and whether they self-manage or hire a property manager.
The three main cost categories that reduce gross to net yield specifically in Budapest are: building common charges ("közös költség") which run 25,000 to 60,000 HUF monthly in older downtown buildings with elevators, property management fees of 8% to 12% for remote owners, and the income tax treatment under NAV rules which varies by your tax residency status.
You might want to check our latest analysis about gross and net rental yields in Budapest.
What monthly rent can I get in Budapest in 2026?
As of early 2026, typical monthly rents in Budapest are around 190,000 HUF (€480 / $510) for a studio, 270,000 HUF (€690 / $730) for a one-bedroom, and 360,000 HUF (€920 / $970) for a two-bedroom apartment.
A decent studio in Budapest rents for 140,000 to 220,000 HUF (€355 to €560 / $375 to $590) depending on location, with outer districts like XIV or III at the low end and inner Pest at the high end.
A typical one-bedroom apartment in Budapest commands 240,000 to 320,000 HUF (€610 to €815 / $645 to $860), with the strongest demand in well-connected districts like XIII (Újlipótváros) and XI (Újbuda).
A standard two-bedroom in Budapest ranges from 280,000 to 450,000 HUF (€715 to €1,150 / $755 to $1,210), with premium prices in District V, District II (Rózsadomb), and District XII (Hegyvidék) where families pay up for space and greenery.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Budapest.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Hungary 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 are the real numbers I should budget for renting out in Budapest in 2026?
What's the total "all-in" monthly cost to hold a rental in Budapest in 2026?
As of early 2026, the total "all-in" monthly cost to hold a typical rental property in Budapest ranges from 50,000 to 120,000 HUF (€125 to €305 / $135 to $325) excluding mortgage payments, depending on building age and management setup.
Most Budapest landlords experience monthly holding costs between 40,000 HUF for a newer building with low common charges and 150,000 HUF for an older downtown building with a property manager and higher maintenance reserves.
The single largest cost category for Budapest rental properties is the building common charge ("közös költség"), which can run 25,000 to 60,000 HUF monthly in classic inner-city buildings with elevators, ongoing renovations, or older infrastructure.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Budapest.
What's the typical vacancy rate in Budapest in 2026?
As of early 2026, the typical vacancy rate for rental properties in Budapest is around 4% citywide, indicating a relatively tight market where well-priced units find tenants quickly.
Budapest landlords should realistically budget for 0.5 to 1.5 months of vacancy per year (4% to 12%), because even in a tight market you need time for tenant turnover, cleaning, and minor repairs between leases.
The main factor causing vacancy to vary across Budapest neighborhoods is proximity to Metro lines and employment centers, with districts along the M4 line and the Grand Boulevard seeing the fastest tenant placement.
The highest tenant turnover in Budapest typically occurs in late August and September when students arrive and professionals relocate, making summer the tightest competition period for available units.
We have a whole part covering the best rental strategies in our pack about buying a property in Budapest.
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Where do rentals perform best in Budapest in 2026?
Which neighborhoods have the highest long-term demand in Budapest in 2026?
As of early 2026, the three Budapest neighborhoods with the highest overall long-term rental demand are District XIII (Újlipótváros) for its Danube-side walkability, District XI (Újbuda) around Bartók Béla út, and District IX (Ferencváros) for its transit links and newer developments.
Families in Budapest gravitate toward District II (Rózsadomb and Pasarét) for prestigious schools and green space, District XII (Hegyvidék near Svábhegy) for a quieter hillside lifestyle, and District XIV (Zugló) for more suburban-feeling neighborhoods at lower prices.
Students seeking rentals in Budapest concentrate around District XI near BME and ELTE campuses, District IX close to Corvinus University, and District VIII (Palotanegyed) which offers central locations near multiple institutions at more affordable rents.
Expats and international professionals in Budapest prefer District V (Belváros-Lipótváros) for its central walkability, District XIII (Újlipótváros) for its combination of local amenities and accessibility, and District VI/VII (Terézváros/Erzsébetváros) for their vibrant atmosphere, though District VI now has short-term rental restrictions.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Budapest.
Which neighborhoods have the best yield in Budapest in 2026?
As of early 2026, the three Budapest neighborhoods with the best rental yields are District VIII (Józsefváros) particularly the Palotanegyed area, parts of District IX (Ferencváros) away from the center, and outer sections of District XIII near Angyalföld.
These top-yielding Budapest neighborhoods deliver gross rental yields between 5% and 6.5%, compared to 4% to 4.5% in prime districts like District V where purchase prices are significantly higher relative to achievable rents.
The main characteristic allowing these Budapest neighborhoods to achieve higher yields is their lower purchase prices per square meter combined with rents that haven't discounted proportionally, often because of improving infrastructure or gentrification that hasn't fully priced into sales values yet.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Budapest.
Where do tenants pay the highest rents in Budapest in 2026?
As of early 2026, the three Budapest neighborhoods where tenants pay the highest rents are District V (Belváros-Lipótváros) at 350,000 to 450,000 HUF (€890 to €1,150 / $940 to $1,210), District II (Rózsadomb) at 320,000 to 420,000 HUF (€815 to €1,070 / $860 to $1,130), and District XII (Hegyvidék) at 300,000 to 400,000 HUF (€765 to €1,020 / $810 to $1,075).
In these premium Budapest neighborhoods, a standard two-bedroom apartment typically rents for 400,000 to 550,000 HUF (€1,020 to €1,400 / $1,075 to $1,480), with newly renovated units or those with terraces commanding even higher premiums.
The main characteristic making these Budapest neighborhoods command the highest rents is their combination of prestige address, proximity to international schools and embassies, and either Danube views (District V) or green hillside settings (Districts II and XII) that cannot be replicated elsewhere in the city.
The typical tenant profile in these highest-rent Budapest neighborhoods includes senior expatriate executives, diplomatic personnel, and affluent Hungarian families who prioritize address prestige, security, and access to premium services over value optimization.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Hungary. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Budapest in 2026?
What features increase rent the most in Budapest in 2026?
As of early 2026, the three property features that increase monthly rent the most in Budapest are air conditioning (essential for top-floor units in summer), an elevator in the building (many classic buildings are walk-ups), and modern energy-efficient windows that reduce utility costs in drafty older apartments.
Air conditioning alone can add a 10% to 15% rent premium in Budapest because summer temperatures regularly exceed 30°C and older buildings without AC become uncomfortable, making it a dealbreaker for many expat and professional tenants.
One commonly overrated feature in Budapest that landlords invest in but tenants don't pay much extra for is high-end kitchen appliances, since most tenants prioritize location, building condition, and climate control over having a professional-grade oven they won't fully use.
An affordable upgrade that provides strong return on investment for Budapest landlords is installing a split-unit air conditioner for around 150,000 to 250,000 HUF, which typically pays back within one to two years through the rent premium it enables.
Do furnished rentals rent faster in Budapest in 2026?
As of early 2026, furnished apartments in Budapest rent approximately 7 to 14 days faster than unfurnished ones in central districts, because the city's strong expat and student population needs turnkey solutions without the hassle of buying furniture for a temporary stay.
Furnished apartments in Budapest typically command a rent premium of 15% to 25% over comparable unfurnished units, which usually covers the furniture investment within 12 to 18 months while also reducing vacancy between tenants.
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How regulated is long-term renting in Budapest right now?
Can I freely set rent prices in Budapest right now?
In Budapest in early 2026, landlords have nearly complete freedom to set initial rent prices by mutual agreement with tenants, as Hungary does not have rent control laws like some Western European cities.
Rent increases during a tenancy in Budapest are governed by whatever terms you put in the lease contract, whether that's a fixed annual percentage, an inflation-linked adjustment, or a renegotiation clause, so the contract you draft determines your flexibility.
What's the standard lease length in Budapest right now?
The most common lease length for residential rentals in Budapest is 12 months fixed-term, though Hungarian law allows any duration the parties agree upon, including open-ended leases that continue until terminated.
In Budapest, landlords typically require a security deposit of one to two months' rent, with three months being the practical upper limit because Hungarian courts have been known to reduce deposits above three months if challenged by tenants.
At the end of a tenancy in Budapest, the landlord must return the security deposit minus any legitimate deductions for unpaid rent or documented damages, and while there's no statutory deadline, the standard practice is to settle within 15 to 30 days after the tenant vacates and the property is inspected.
We made this infographic to show you how property prices in Hungary 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.
How does short-term renting really work in Budapest in 2026?
Is Airbnb legal in Budapest right now?
Airbnb-style short-term rentals remain legal in most of Budapest in early 2026, but with major restrictions: a citywide moratorium prevents any new registrations until December 2026, and District VI (Terézváros) has completely banned short-term rentals as of January 1, 2026.
To legally operate a short-term rental in Budapest, you must be registered through the NTAK (National Tourism Data Supply Centre) system, which issues your registration number and requires ongoing guest data reporting, but no new registrations are being accepted in Budapest during the 2025-2026 moratorium period.
Budapest does not have a single citywide cap on annual rental nights, but individual districts can set their own limits, and District VI has effectively set this to zero days while District VII now requires that no more than 10% of a residential building's floor area be used for commercial accommodation.
The most common penalty for operating an unlicensed or non-compliant short-term rental in Budapest is an administrative fine of up to 200,000 HUF for individuals or 2,000,000 HUF for companies, plus the property can be ordered closed for up to 45 days.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Budapest.
What's the average short-term occupancy in Budapest in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Budapest is approximately 60% to 65%, which translates to roughly 220 to 240 booked nights per year for a well-managed listing.
Across different Budapest short-term rentals, occupancy rates range from around 45% for poorly located or overpriced listings to 75% or higher for optimized properties in prime tourist areas with strong reviews.
The highest occupancy months for Budapest short-term rentals are typically April through October, with peaks during the spring festival season, summer holidays, and the December Christmas market period when the city attracts the most international visitors.
The lowest occupancy months in Budapest fall in January through early March and November, when cold weather and fewer events reduce tourist arrivals, though business travel provides some baseline demand during these shoulder periods.
Finally, please note that you can find much more granular data about this topic in our property pack about Budapest.
What's the average nightly rate in Budapest in 2026?
As of early 2026, the average nightly rate for short-term rentals in Budapest is approximately 39,000 HUF (€100 / $105), though this varies significantly by property type, location, and season.
Across Budapest short-term rental listings, nightly rates range from around 20,000 HUF (€50 / $55) for basic studios in outer districts to 80,000 HUF (€205 / $215) or more for premium apartments in District V or VII with Danube views or unique design features.
The typical nightly rate difference between peak season (summer and December holidays) and off-season (January-February) in Budapest is around 15,000 to 25,000 HUF (€40 to €65 / $40 to $70), meaning savvy operators adjust pricing dynamically to capture demand.
Is short-term rental supply saturated in Budapest in 2026?
As of early 2026, the Budapest short-term rental market is not oversaturated in the traditional sense, but supply growth is artificially constrained by the 2025-2026 registration moratorium that prevents new legal entrants.
The current trend in active Budapest short-term rental listings is essentially frozen for legal properties, while the District VI ban is removing approximately 2,700 units that must transition to long-term rentals or exit the market entirely.
The most oversaturated Budapest neighborhoods for short-term rentals are District VII (Erzsébetváros) around the ruin bar area and District V along the Danube promenade, where competition for tourist bookings is intense and pricing pressure is strongest.
Budapest neighborhoods that still have room for short-term rental supply, assuming you have an existing registration, include parts of District IX (Ferencváros) near the Great Market Hall and District XI along the M4 metro corridor, where tourist infrastructure is developing but STR density remains lower.
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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 Budapest, 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 |
|---|---|---|
| Hungarian Central Statistical Office (KSH) | Hungary's official statistics office publishing formal rent index data. | We used it to anchor recent rent growth trends for Budapest. We also referenced its methodology for understanding how rent data is measured from listings. |
| Magyar Nemzeti Bank (MNB) | Hungary's central bank with authoritative housing market analysis. | We used it as our macro sanity check for market direction. We referenced yield dynamics and policy backdrop from their housing reports. |
| Hungarian Civil Code (NJT) | Official consolidated legal text source for Hungarian contract law. | We used it to explain how leases work and why rent terms are contract-driven. We anchored deposit and lease length guidance in its provisions. |
| NAV (Hungarian Tax Authority) | Tax authority's official guidance written directly for taxpayers. | We used it to explain tax number requirements for foreign landlords. We framed net yield calculations using its rental income treatment rules. |
| Hungarian Government (kormany.hu) | Official government communication channel for policy announcements. | We used it to confirm the 2025-2026 Budapest STR registration moratorium. We treated it as the authoritative source for citywide short-term rental policy. |
| Terézváros Municipality (District VI) | Official district government statement on local regulations. | We used it to confirm District VI's complete STR ban from January 2026. We highlighted how district-level rules can differ from citywide policies. |
| Global Property Guide | Long-running transparent dataset showing price and rent inputs behind yields. | We used it to estimate gross yields by unit size and district. We cross-checked our rent estimates against their independent dataset. |
| AirDNA | Industry-standard STR data provider with consistent city-level methodology. | We used it to estimate occupancy rates and nightly rates for Budapest Airbnbs. We compared STR economics versus long-term rental returns. |
| NTAK (National Tourism Data Centre) | Official system for accommodation registration and compliance reporting. | We used it to explain STR registration and reporting requirements. We outlined the compliance steps operators must follow in plain language. |
| Budapest Business Journal | Major English-language business publication citing named market participants. | We used it to anchor current asking rent levels right before early 2026. We triangulated their data against KSH trends and other sources. |
| Wagner & Wagner Law Firm | Specialized local law firm explaining court-tested deposit practices. | We used it to explain the practical deposit limit of three months. We kept deposit guidance concrete based on how Hungarian courts actually rule. |
We have made this infographic to give you a quick and clear snapshot of the property market in Hungary. 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.
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