Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Florence's property market is included in our pack
This blog post gives you a clear, data-backed picture of rental yields in Florence for 2026, covering everything from gross and net returns to which neighborhoods deliver the best performance.
We constantly update this article so you always have the freshest numbers and insights about the Florence property market.
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 Florence.
Insights
- Florence's average gross rental yield sits around 5.7% in early 2026, but the gap between the historic center (around 4.4%) and well-connected outer districts like Leopoldo (around 5.5%) means location choice can swing your return by more than a full percentage point.
- Studios and small one-bedroom apartments in Florence deliver gross yields of 6% to 7%, outperforming larger units because rent per square meter stays high while purchase prices do not rise proportionally.
- The Careggi and Serpiolle area benefits from constant healthcare worker and student demand tied to the major hospital, keeping vacancy rates among the lowest in the city at around 2% to 4%.
- Net yields in Florence typically land around 4%, with the biggest deductions coming from rental income tax (21% under cedolare secca) and maintenance reserves for older Florentine buildings.
- Tramvia Line 4, a 570-million-euro project heading toward Leopolda and Le Piagge, is expected to lift rents in those corridors once connectivity improves, potentially adding 5% to 10% to rental values.
- Florence's vacancy rate for well-priced, transit-connected rentals runs just 11 to 15 days empty per year, reflecting a market where renter demand clearly outpaces available supply.
- Premium neighborhoods like Oltrarno and Michelangelo deliver gross yields below 4.6% because prestige pricing pushes purchase costs far above what rents can justify.
- Property management in Florence typically costs 8% to 10% of annual rent, plus a one-time tenant placement fee often equal to one month's rent.
What are the rental yields in Florence as of 2026?
What's the average gross rental yield in Florence as of 2026?
As of early 2026, the average gross rental yield for residential property in Florence is approximately 5.7%, covering all common property types from studios to detached houses.
Most typical residential investments in Florence fall within a realistic gross yield range of 5.0% to 6.5%, depending on the neighborhood, unit size, and property condition.
Compared to the broader Italian market, Florence sits slightly above the national average for major cities, though it trails some secondary Italian cities where prices are lower and yields can reach 7% or more.
The single most important factor shaping gross rental yields in Florence right now is the tight rental market, where strong demand from students, healthcare workers, and tourism-linked professionals keeps rents firm even as property prices remain elevated in central areas.
What's the average net rental yield in Florence as of 2026?
As of early 2026, the average net rental yield for residential property in Florence is approximately 4.0%, which reflects what a typical long-term landlord can realistically expect after all recurring costs.
The typical difference between gross and net yields in Florence runs about 1.5 to 1.7 percentage points, meaning landlords should expect to lose roughly a third of their gross return to operating expenses and taxes.
The expense category that most significantly reduces gross yield in Florence is rental income tax, commonly charged at 21% under the cedolare secca flat-tax regime, followed closely by maintenance reserves which run higher in older Florentine buildings.
The realistic range for net yields on standard investment properties in Florence is 3.5% to 4.5%, with variation driven by building age, management choices, and whether you self-manage or hire a property manager.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Florence.
We made this infographic to show you how property prices in Italy 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 Florence in 2026?
In Florence in 2026, a gross rental yield of around 6% or higher is generally considered "good" by local investors, while anything above 4.5% net is seen as a strong result given the city's elevated property prices.
The threshold that separates average-performing properties from high-performing ones in Florence typically falls around 5.5% gross, with properties above this level usually found in well-connected residential districts outside the historic core rather than in the most prestigious postcodes.
How much do yields vary by neighborhood in Florence as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Florence is roughly 1.2 percentage points, ranging from about 4.4% in premium areas to around 5.6% in well-connected outer districts.
The neighborhoods that typically deliver the highest rental yields in Florence are those with solid renter demand but more moderate purchase prices, such as Leopoldo, Porta al Prato, Firenze Nord, and Serpiolle near Careggi hospital.
The neighborhoods that typically deliver the lowest rental yields in Florence are the prestige areas where purchase prices are driven by lifestyle appeal and scarcity, including Michelangelo, Porta Romana, Oltrarno, and parts of the historic Centro.
The main reason yields vary so much across Florence neighborhoods is that property prices in the historic core and hills reflect prestige and tourism appeal, while rents do not scale up at the same pace, compressing returns in those areas.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Florence.
How much do yields vary by property type in Florence as of 2026?
As of early 2026, gross rental yields across different property types in Florence range from about 3.5% for premium villas and large apartments up to 7% for well-located studios and small one-bedroom units.
The property type that currently delivers the highest average gross rental yield in Florence is the studio or small one-bedroom apartment, which commands strong rent per square meter from students and young professionals while purchase prices stay relatively contained.
The property type that currently delivers the lowest average gross rental yield in Florence is the detached villa or large premium apartment, where high purchase prices far outpace the rents these properties can command from a narrower tenant pool.
The key reason yields differ between property types in Florence is that rent does not scale linearly with size or luxury level, so smaller units generate more income relative to their cost while larger properties offer stability but lower percentage returns.
By the way, you might want to read the following:
What's the typical vacancy rate in Florence as of 2026?
As of early 2026, the estimated average residential vacancy rate in Florence for long-term rentals is approximately 3% to 6%, which translates to roughly 11 to 22 days empty per year for a typical property.
Vacancy rates across different Florence neighborhoods range from as low as 2% in high-demand areas near Careggi hospital or Novoli to 8% or more for overpriced, poorly located, or outdated units.
The main factor driving vacancy rates in Florence right now is the imbalance between renter demand and available supply, with strong demand from students, healthcare workers, and young professionals keeping well-priced units occupied almost continuously.
Compared to national averages, Florence's vacancy rate is relatively low, reflecting its status as a major university city and employment center where rental demand consistently outpaces the supply of quality housing.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Florence.
What's the rent-to-price ratio in Florence as of 2026?
As of early 2026, the average rent-to-price ratio in Florence is approximately 0.45% monthly, which translates to a gross annual yield of around 5.4% to 6.0% depending on the specific neighborhood and property type.
A rent-to-price ratio above 0.5% monthly (or 6% annually) is generally considered favorable for buy-to-let investors in Florence, and this ratio directly equals the gross rental yield since both measure annual rent as a percentage of purchase price.
Compared to other major Italian cities, Florence's rent-to-price ratio sits in the middle range, higher than Milan's compressed ratios in prime areas but lower than what you might find in smaller cities like Bologna or secondary Tuscan towns.
We have made this infographic to give you a quick and clear snapshot of the property market in Italy. 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 Florence give the best yields as of 2026?
Where are the highest-yield areas in Florence as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Florence are Leopoldo and Porta al Prato, Firenze Nord (overlapping with Novoli and Rifredi), and Serpiolle near Careggi hospital.
The estimated average gross rental yield range in these top-performing areas is approximately 5.1% to 5.6%, with Leopoldo and Porta al Prato often reaching the higher end of that range.
The main characteristic these high-yield areas share is strong, consistent renter demand driven by proximity to the university, major hospitals, or good transit connections, combined with purchase prices that have not inflated as dramatically as the historic center.
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 Florence.
Where are the lowest-yield areas in Florence as of 2026?
As of early 2026, the top three lowest-yield neighborhoods in Florence are Michelangelo and Porta Romana, Oltrarno, and parts of the historic Centro.
The estimated average gross rental yield range in these low-yield areas is approximately 4.4% to 4.9%, with Michelangelo and Porta Romana sitting at the bottom of that range.
The main reason yields are compressed in these Florence neighborhoods is that prestige pricing and lifestyle appeal drive purchase prices far above what rental income can support, meaning you are essentially paying for scarcity and location cachet rather than cash flow.
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 Florence.
Which areas have the lowest vacancy in Florence as of 2026?
As of early 2026, the top three neighborhoods with the lowest residential vacancy rates in Florence are Careggi and Serpiolle, Novoli, and Campo di Marte.
The estimated vacancy rate range in these low-vacancy areas is approximately 2% to 4%, meaning properties typically sit empty for less than two weeks per year when priced correctly.
The main demand driver keeping vacancy low in these Florence areas is non-negotiable daily need, whether it is healthcare workers at Careggi hospital, university students and staff in Novoli, or commuters who value Campo di Marte's excellent transit links.
The trade-off investors typically face when targeting these low-vacancy areas is that strong demand has already pushed purchase prices higher, which can compress gross yields even as occupancy remains nearly constant.
Which areas have the most renter demand in Florence right now?
The top three neighborhoods currently experiencing the strongest renter demand in Florence are Novoli, Rifredi, and Careggi, followed closely by Campo di Marte and the Gavinana and Viale Europa corridor.
The type of renter profile driving most of the demand in these areas is a mix of university students, young professionals working in the city center, and healthcare staff employed at major institutions like Careggi hospital.
Rental listings in these high-demand Florence neighborhoods typically get filled within one to two weeks when priced at market rates, and well-presented units often receive multiple inquiries within the first few days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Florence.
Which upcoming projects could boost rents and rental yields in Florence as of 2026?
As of early 2026, the top three upcoming infrastructure projects expected to boost rents in Florence are Tramvia Line 4 toward Leopolda and Le Piagge, the Line 3 extension to Bagno a Ripoli along Viale Europa, and various PNRR-funded urban improvement works across the city.
The neighborhoods most likely to benefit from these projects include Porta al Prato and Leopolda for Line 4, Gavinana and Viale Europa for Line 3, and scattered areas near PNRR public realm upgrades such as parts of Novoli.
Once these projects are completed, investors might realistically expect rent increases of 5% to 10% in directly affected corridors, as improved transit access typically translates into stronger tenant demand and willingness to pay.
You'll find our latest property market analysis about Florence here.
Get fresh and reliable information about the market in Florence
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What property type should I buy for renting in Florence as of 2026?
Between studios and larger units in Florence, which performs best in 2026?
As of early 2026, studios and small one-bedroom apartments outperform larger units in Florence in terms of both rental yield and occupancy, making them the better choice for investors focused on cash flow.
The typical gross rental yield for studios in Florence ranges from 6% to 7% (around 1,200 to 1,400 euros per square meter annually, or roughly 1,300 to 1,500 USD), compared to 5% to 5.5% for two-bedroom apartments and under 5% for larger family units.
The main factor explaining this performance gap is that Florence has a deep pool of student and young professional renters who prioritize location and affordability over space, driving strong demand and high rent per square meter for compact units.
However, larger two-bedroom units can be the better investment if you are targeting small families or professional sharers who value stability and longer lease terms, which reduces turnover costs and vacancy risk.
What property types are in most demand in Florence as of 2026?
As of early 2026, the most in-demand property type for rentals in Florence is the well-laid-out apartment in the studio to two-bedroom range, especially those near transit stops and essential services.
The top three property types ranked by current tenant demand in Florence are small one-bedroom apartments for singles and couples, two-bedroom apartments for sharers or small families, and functional homes with outdoor space in outer residential districts.
The primary demographic trend driving this demand pattern is the combination of students, young professionals, and healthcare workers who need affordable, well-connected housing and cannot or prefer not to buy in a high-priced market.
One property type that is currently underperforming in demand and likely to remain so is the large luxury apartment in the historic center, which appeals to a narrow pool of tenants and often sits vacant longer at asking rents.
What unit size has the best yield per m² in Florence as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Florence is approximately 30 to 55 square meters, which corresponds to studios and compact one-bedroom apartments with efficient layouts.
The typical gross rental yield per square meter for this optimal unit size in Florence is around 250 to 280 euros annually (approximately 270 to 300 USD or 250 to 280 EUR), compared to 200 to 230 euros for units above 90 square meters.
The main reason smaller units deliver higher yield per square meter is that rent does not scale linearly with size in Florence, so a 30-square-meter studio might rent for 800 euros monthly while a 90-square-meter apartment only fetches 1,400 euros, not three times as much.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Florence.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy 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 Florence as of 2026?
What are typical property taxes and recurring local fees in Florence as of 2026?
As of early 2026, the estimated annual IMU property tax for a typical rental apartment in Florence ranges from approximately 500 to 1,500 euros (around 540 to 1,620 USD), depending on the property's cadastral value and category.
Other recurring local fees landlords must budget for annually in Florence include TARI (waste tax), which often falls to the tenant but varies by contract, and condominium fees for common building expenses, typically ranging from 600 to 1,800 euros (650 to 1,950 USD) per year.
Combined, these taxes and fees typically represent about 8% to 15% of gross rental income in Florence, with IMU being the largest single item for landlords who do not use the property as their primary residence.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Florence.
What insurance, maintenance, and annual repair costs should landlords budget in Florence right now?
The estimated annual landlord insurance cost for a typical rental property in Florence is approximately 150 to 300 euros (around 160 to 325 USD), covering basic property protection with higher premiums for broader coverage.
The recommended annual maintenance and repair budget in Florence is roughly 0.8% to 1.2% of annual rent or around 800 to 1,800 euros (865 to 1,950 USD) for a typical apartment, with older buildings requiring reserves at the higher end of that range.
The type of repair expense that most commonly catches landlords off guard in Florence is building facade restoration or structural condominium works, which can result in unexpected special assessments of several thousand euros.
The total combined annual cost landlords should realistically budget for insurance, maintenance, and repairs in Florence is approximately 1,000 to 2,100 euros (1,080 to 2,270 USD), representing a meaningful slice of gross rental income.
Which utilities do landlords typically pay, and what do they cost in Florence right now?
In Florence, tenants typically pay metered utilities such as electricity, gas, and water, while landlords often cover some portion of condominium common-area utilities like stairway lighting and elevator maintenance through monthly condo fees.
The estimated monthly cost for landlord-paid utilities in a typical Florence rental unit is usually included within the condominium fees, adding roughly 30 to 80 euros (32 to 87 USD) to the landlord's monthly outlay depending on the building's size and services.
What does full-service property management cost, including leasing, in Florence as of 2026?
As of early 2026, the estimated monthly property management fee for full-service management in Florence runs approximately 8% to 10% of monthly rent, which translates to roughly 80 to 150 euros (87 to 162 USD) per month for a typical apartment.
The typical leasing or tenant-placement fee charged on top of ongoing management in Florence is often equivalent to one month's rent, though some agencies negotiate this down for longer management contracts.
What's a realistic vacancy buffer in Florence as of 2026?
As of early 2026, landlords in Florence should set aside approximately 5% of annual rental income as a vacancy buffer, which provides a cushion for turnover, marketing, and minor gaps between tenants.
The typical number of vacant weeks per year landlords experience in Florence is around two to three weeks for well-priced, well-located properties, though this can stretch to four or more weeks for niche or overpriced units.
Buying real estate in Florence 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 Florence, 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 |
|---|---|---|
| Immobiliare.it | It is Italy's largest property portal with transparent, regularly updated local price and rent snapshots. | We used it for current asking prices and asking rents per square meter in Florence. We computed rent-to-price ratios and gross yields per zone from this same dataset. |
| Idealista | Idealista is a major European portal with a public methodology note and consistent time series data. | We used it as an independent second read on sale prices per square meter in Florence. We cross-checked it against Immobiliare.it to avoid relying on one marketplace snapshot. |
| Agenzia delle Entrate (OMI) | OMI is the Italian tax agency's official real estate observatory and a core reference for property valuations. | We used OMI to sanity-check that portal asking prices are in the right ballpark. We anchored any yield assumptions that seemed too optimistic back to official market bands. |
| Bank of Italy | It is the country's central bank, producing high-quality macro and housing market analysis. | We used it for macro context on credit conditions and housing market temperature. We interpreted whether yields are driven by rising rents, falling prices, or both. |
| ISTAT | Italy's national statistics office is the top source for official inflation and household data. | We used it to frame rent indexation and cost pressures that matter for net yield. We kept the narrative grounded in official statistics rather than anecdotes. |
| Eurostat | Eurostat is the EU's official statistics body with harmonized methods across countries. | We used it to cross-check the broader house price versus rent trend affecting Italy. We treated it as a macro reality check alongside national sources. |
| MEF Dipartimento Finanze | It is the official ministry source for local property tax rules and calculation methodology. | We used it to explain how IMU is calculated using cadastral values and multipliers. We kept tax discussions aligned with law rather than forum advice. |
| MEF IMU Prospectus Repository | It is the official repository of municipal IMU deliberations transmitted to the ministry. | We used Florence's published prospectus as a practical reference point for local IMU rates. We translated it into what it means for a landlord's annual budget. |
| Comune di Firenze (TARI) | It is the official city website describing the local waste tax framework and payment rules. | We used it to clarify who usually pays what and where TARI appears in landlord and tenant arrangements. We treated it as the official baseline before explaining market practice. |
| Agenzia delle Entrate (Cedolare Secca) | It is the tax authority's own guidance on rental taxation and the flat-tax regime. | We used it to state the 21% standard and 10% canone concordato rates clearly. We highlighted the trade-off where landlords waive rent indexation when opting in. |
| Confedilizia Expense Split Table | Confedilizia is a major Italian landlord association and this table is widely referenced in practice. | We used it to explain which recurring building costs sit with the owner versus tenant. We translated that into net yield line items for budgeting purposes. |
| IVASS | IVASS is Italy's insurance regulator and its bulletin is an official statistical publication. | We used it to anchor insurance cost discussion in real market statistics. We translated typical premiums into a yearly landlord budget item. |
| Comune di Firenze (PNRR) | It is the municipality's official project portfolio and funding overview for recovery plan investments. | We used it to identify public works likely to improve accessibility and amenities. We focused on areas most exposed to those works for rent uplift potential. |
| Comune di Firenze Mobility Portal | It is the city's official mobility portal with project notices and timelines for tramway expansion. | We used it to link upcoming infrastructure to micro-area rent pressure. We prioritized projects with visible, citywide impact on tenant accessibility. |
| Comune di Firenze (Tramvia Line 4) | It is an official municipal communication with concrete project scope and budget details. | We used it to support the case that corridors like Leopolda and Le Piagge may see rent upside. We treated it as project proof rather than speculation. |
| Firenze Tramvia | It is the dedicated official project site publishing works phases and construction notices. | We used it to validate where active tramway works are and which streets are being affected. We identified near-term disruption versus long-term upside zones. |
| Tecnocasa Research | Tecnocasa is one of Italy's largest real estate networks with a dedicated research office. | We used it to cross-check rental demand strength and the rent versus mortgage comparison. We treated it as qualitative support for vacancy assumptions. |
| FIMAA Italy | FIMAA is a national federation of real estate agents under Confcommercio publishing periodic market notes. | We used it to support the claim that renter demand remains strong and supply tight. We treated it as an industry temperature check alongside other data points. |
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