Authored by the expert who managed and guided the team behind the France Property Pack
Everything you need to know before buying real estate is included in our France Property Pack
France remains one of the most attractive European markets for foreign property investors who want to earn rental income.
Whether you're eyeing a Parisian apartment or a sun-drenched flat in Marseille, understanding the rules and real numbers is essential before you commit.
We constantly update this blog post to reflect the latest regulations, rental yields, and market conditions in France.
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 France.
Insights
- Paris gross rental yields hover around 3.2% in 2026, while Marseille can reach 5.5%, making regional cities increasingly attractive for yield-focused investors in France.
- Non-residents can legally own and rent property in France without any residency requirement, though you will need a French tax identification number to declare rental income.
- Furnished rentals in France command a 10% to 20% rent premium over unfurnished units, but they also fall under a different tax category (BIC) that requires careful planning.
- France's rent control system applies to cities like Paris, Lyon, and Bordeaux, meaning landlords cannot freely set initial rents in these regulated zones.
- Short-term rentals in France face strict rules, including a 120-day annual limit for primary residences and mandatory registration in cities like Paris.
- Vacancy rates in tight French markets like Paris and Lyon typically stay between 2% and 5%, meaning landlords should budget for about two to three weeks empty per year.
- The standard lease for unfurnished rentals in France is three years, while furnished leases are typically one year, giving landlords more flexibility with the latter.
- Security deposits in France are capped at one month of rent for unfurnished properties and two months for furnished ones, which is lower than many European countries.
- Net rental yields in France typically fall 30% to 40% below gross yields due to copropriete fees, taxe fonciere, and management costs.
- Paris short-term rentals show average occupancy around 65% with nightly rates near €215 ($234), but regulatory compliance is increasingly difficult for non-primary residences.
Fact-checked and reviewed by our local expert
Maxence Toulouse 🇫🇷
General Manager of Iddyl Property
Can I legally rent out a property in France as a foreigner right now?
Can a foreigner own-and-rent a residential property in France in 2026?
As of early 2026, foreigners can legally buy and rent out residential property in France without any specific nationality restrictions or ownership barriers.
The most common ownership structure for foreign individuals in France is direct personal ownership, though you can also use a French civil real estate company (SCI) if you want more flexibility for inheritance or shared ownership.
The main practical hurdle for foreigners is not legal permission but rather the strict anti-money laundering and source-of-funds checks that French notaries and banks apply during the purchase process.
If you're not a local, you might want to read our guide to foreign property ownership in France.
Do I need residency to rent out in France right now?
No, you do not need to be a French resident to rent out a property in France, and many non-resident landlords successfully manage rentals from abroad.
However, you will need a French tax identification number because rental income earned in France must be declared to the French tax authorities, as explained by impots.gouv.fr.
While a French bank account is not legally mandatory, it is practically essential because most tenants and property managers expect a French IBAN (or SEPA-compatible account) for automated rent transfers.
Remote management is entirely feasible, and many foreign owners use a French letting agency ("gestion locative") to handle tenant relations, maintenance, and rent collection without ever visiting the property.
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What rental strategy makes the most money in France in 2026?
Is long-term renting more profitable than short-term in France in 2026?
As of early 2026, long-term renting tends to deliver more stable and stress-adjusted returns for most foreign landlords in France, especially given the strict short-term rental regulations in high-demand cities.
In Paris, a well-managed short-term rental might generate €25,000 to €35,000 per year for a one-bedroom, while a long-term rental of the same unit typically earns €13,000 to €15,000, but the short-term option comes with significantly higher costs, compliance risks, and operational headaches.
Short-term renting financially outperforms long-term only in prime tourist micro-locations (central Paris, Cote d'Azur, ski resorts) where you can achieve 65% or higher occupancy and charge premium nightly rates year-round.
What's the average gross rental yield in France in 2026?
As of early 2026, the average gross rental yield for residential properties in France ranges from about 3% in Paris to around 5% to 6% in mid-sized regional cities like Marseille and Montpellier.
The realistic yield range for most French residential properties falls between 2.5% at the low end (prime Paris locations) and 6.5% at the high end (affordable cities with strong rental demand).
Studios and small one-bedroom apartments typically achieve the highest gross rental yields in France because their lower purchase prices relative to achievable rents create a more favorable rent-to-price ratio.
By the way, we have much more granular data about rental yields in our property pack about France.
What's the realistic net rental yield after costs in France in 2026?
As of early 2026, the realistic net rental yield for long-term rentals in France typically falls between 1.8% and 3.5% after all operating costs but before mortgage payments and income tax.
Most landlords in France experience net yields that are 30% to 40% lower than their gross yields, which means a 4.5% gross yield often translates to roughly 2.7% to 3.2% net.
The three main cost categories that reduce gross yield in France are copropriete charges (apartment building fees that can be substantial in older Parisian buildings), taxe fonciere (property tax that varies dramatically by commune), and the DPE-related energy upgrade costs that are increasingly required for poorly-rated rental units.
You might want to check our latest analysis about gross and net rental yields in France.
What monthly rent can I get in France in 2026?
As of early 2026, typical monthly rents in France range from about €440 to €754 for a studio, €543 to €1,086 for a one-bedroom, and €685 to €1,519 for a two-bedroom, with Paris at the top of each range and regional cities like Toulouse and Marseille at the lower end (roughly $480 to $820 / €440 to €754 for studios in USD and EUR terms).
A decent studio in France rents for €400 to €550 per month ($435 to $600 / €400 to €550) in most regional cities, while Paris studios start around €700 to €850 ($760 to $925).
A typical one-bedroom apartment in France commands €500 to €700 per month ($545 to $760) in cities like Lyon, Toulouse, or Marseille, and €950 to €1,200 ($1,035 to $1,305) in Paris.
A standard two-bedroom apartment in France rents for €650 to €900 per month ($710 to $980) in regional cities and €1,300 to €1,800 ($1,415 to $1,960) in Paris, depending on neighborhood and condition.
If you want to know more about this topic, you can read our guide about rents and rental incomes in France.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in France 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 France in 2026?
What's the total "all-in" monthly cost to hold a rental in France in 2026?
As of early 2026, the total "all-in" monthly cost to hold a typical rental apartment in France (before mortgage) ranges from €200 to €500 ($220 to $545) for regional cities and €350 to €800 ($380 to $870) for Paris, depending on property size and building age.
The realistic monthly holding cost range for most standard French rental properties is €150 to €400 ($165 to $435) for smaller regional units and €400 to €900 ($435 to $980) for larger Parisian apartments with high copropriete charges.
In France, the largest single cost contributor is typically the copropriete charges (building fees) for apartments, which can easily reach €150 to €400 per month in older buildings with elevators, gardens, or concierge services.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in France.
What's the typical vacancy rate in France in 2026?
As of early 2026, the typical operational vacancy rate for rental properties in France's major cities ranges from 2% to 5% in tight markets like Paris, Lyon, and Bordeaux, and 5% to 10% in softer regional markets.
Most landlords in France should budget for about two to four weeks of vacancy per year in strong markets, which accounts for turnover time between tenants and any light refresh work needed.
The main factor driving vacancy differences between French neighborhoods is proximity to employment centers and public transport, with properties near Metro stations and business districts renting significantly faster than those in peripheral or poorly-connected areas.
In France, the highest tenant turnover and vacancy typically occurs in late summer (August to September) when students move and leases turn over, followed by a secondary spike in January when some professionals relocate.
We have a whole part covering the best rental strategies in our pack about buying a property in France.
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Where do rentals perform best in France in 2026?
Which neighborhoods have the highest long-term demand in France in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in France are Le Marais and Bastille in Paris, Presqu'ile in Lyon, and Chartrons in Bordeaux, all combining strong job access, transit, and lifestyle appeal.
Families in France show the strongest rental demand in neighborhoods like Convention and Alesia in Paris's 14th and 15th arrondissements, Monplaisir in Lyon, and Cauderan in Bordeaux, where you find larger apartments, good schools, and quieter streets.
Students drive the strongest rental demand in areas near major universities, such as the Latin Quarter (5th arrondissement) in Paris, Rangueil near Paul-Sabatier in Toulouse, and Beaux-Arts in Montpellier.
Expats and international professionals concentrate in premium central neighborhoods like Saint-Germain-des-Pres (6th) and the 7th arrondissement in Paris, Brotteaux in Lyon's 6th, and Orangerie in Strasbourg near EU institutions.
By the way, we've written a blog article detailing what are the current best areas to invest in property in France.
Which neighborhoods have the best yield in France in 2026?
As of early 2026, the three neighborhoods with the best rental yields in France are La Joliette (Euromediterranee area) in Marseille, Wazemmes in Lille, and Port Marianne in Montpellier, all offering yields between 5% and 7%.
The estimated gross rental yield range for these top-yielding French neighborhoods is 5.0% to 6.5%, compared to 2.5% to 3.5% in prime Paris locations.
What allows these neighborhoods to achieve higher yields is the combination of relatively low purchase prices per square meter (often 30% to 50% below Paris levels) paired with rental demand supported by major urban renewal projects, transit expansion, or university presence.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in France.
Where do tenants pay the highest rents in France in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in France are Saint-Germain-des-Pres (6th arrondissement) and Invalides (7th arrondissement) in Paris, plus Triangle d'Or in Bordeaux, with one-bedrooms commanding €1,400 to €2,200 per month ($1,525 to $2,395).
In these premium French neighborhoods, a standard one-bedroom apartment typically rents for €1,500 to €2,500 per month ($1,635 to $2,720), while two-bedrooms range from €2,200 to €4,000 ($2,395 to $4,355).
What makes these neighborhoods command the highest rents in France is not just location but the combination of historic architecture, proximity to cultural landmarks, high-end retail, and the prestige factor that attracts tenants willing to pay for address value.
The typical tenant profile in these highest-rent French neighborhoods includes senior executives, diplomats, international company transferees, and wealthy families seeking proximity to elite schools and cultural institutions.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of France. 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 France in 2026?
What features increase rent the most in France in 2026?
As of early 2026, the top three features that increase monthly rent the most in France are a high energy performance rating (DPE A or B), private outdoor space (balcony or terrace), and a renovated modern kitchen, with outdoor space adding the largest premium in dense cities like Paris and Lyon.
In France, a balcony or terrace can add a 10% to 15% rent premium in Paris and Lyon, where outdoor space is scarce and highly valued by tenants.
One commonly overrated feature that French landlords invest in but tenants do not pay much extra for is high-end designer finishes or luxury bathroom fixtures, which rarely translate into proportional rent increases outside the very top end of the market.
One affordable upgrade that provides strong return on investment for landlords in France is improving the DPE energy rating through better insulation or heating, which both increases tenant willingness to pay and protects against tightening rental regulations for low-rated properties.
Do furnished rentals rent faster in France in 2026?
As of early 2026, furnished apartments in France typically rent about one to two weeks faster than unfurnished ones in major cities, particularly for smaller units targeting students, young professionals, and expats who value move-in convenience.
Furnished rentals in France command a rent premium of about 10% to 20% over unfurnished equivalents, though this comes with higher wear-and-tear costs and placement in the BIC tax category rather than revenus fonciers.
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How regulated is long-term renting in France right now?
Can I freely set rent prices in France right now?
In many parts of France, landlords can freely set initial rent prices, but in designated "zones tendues" (tight housing markets) including Paris, Lyon, Lille, Bordeaux, and Montpellier, initial rents are capped by local reference rent systems under the "encadrement des loyers" framework.
Rent increases during a tenancy in France are regulated nationwide and are typically tied to the IRL (Indice de Reference des Loyers) published by INSEE, which in recent years has allowed annual increases of about 2% to 4% depending on inflation.
What's the standard lease length in France right now?
The standard lease length for unfurnished residential rentals in France is three years when the landlord is an individual, while furnished rentals typically use one-year leases (with a nine-month option for students).
In France, the maximum security deposit a landlord can legally require is one month of rent (excluding charges) for unfurnished properties and two months of rent for furnished ones, which is lower than in many other European countries.
French law requires landlords to return the security deposit within one month if the exit inspection shows no issues, or within two months if deductions are needed, and tenants can claim damages if the landlord delays beyond these deadlines.
We made this infographic to show you how property prices in France 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 France in 2026?
Is Airbnb legal in France right now?
Yes, Airbnb-style short-term rentals are legal in France, but they are heavily regulated, especially in major cities like Paris where you must register your property and comply with local rules.
In most French cities, you need to submit a declaration to the town hall, and in cities like Paris, Bordeaux, and Lyon, you must obtain a registration number that must be displayed on all listings, with some areas requiring additional authorization for non-primary residences.
For your primary residence in France, you can rent short-term for a maximum of 120 days per year in most regulated cities, while secondary homes face stricter limits or may require a change-of-use permit that is difficult to obtain.
The most common penalties for operating a non-compliant short-term rental in France include fines of up to €5,000 for failing to register and up to €50,000 for exceeding the 120-day limit or operating an unauthorized secondary residence rental.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in France.
What's the average short-term occupancy in France in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in France's major cities ranges from about 55% to 70%, with Paris averaging around 65% according to AirDNA benchmarks.
The realistic occupancy range for short-term rentals in France spans from about 45% for properties in less touristy areas to 75% or higher for well-managed listings in prime locations with strong reviews.
In France, the highest occupancy months for short-term rentals are typically June through September (summer holidays) plus December (Christmas markets and New Year), when Paris and coastal destinations see occupancy rates above 80%.
The lowest occupancy months in France are usually January through March (post-holiday lull) and November, when many short-term rentals drop to 35% to 50% occupancy outside of ski resorts.
Finally, please note that you can find much more granular data about this topic in our property pack about France.
What's the average nightly rate in France in 2026?
As of early 2026, the average nightly rate for short-term rentals in France ranges from about €90 to €150 ($100 to $165) in regional cities and €180 to €250 ($195 to $270) in Paris, with the overall national average around €130 ($140).
The realistic nightly rate range for short-term rentals in France spans from about €60 ($65) for basic studios in smaller cities to €400 or more ($435+) for premium apartments in central Paris or luxury coastal destinations.
The typical nightly rate difference between peak season and off-season in France is about 30% to 50%, meaning a Paris apartment renting for €220 ($240) in summer might drop to €130 to €150 ($140 to $165) in January or November.
Is short-term rental supply saturated in France in 2026?
As of early 2026, the short-term rental market in France's major tourist cities like Paris, Nice, and Bordeaux is moderately to highly saturated, with increasing regulation limiting new supply while demand remains strong.
The trend in active short-term rental listings in France has stabilized or slightly declined in cities with strict enforcement (Paris, Lyon) while still growing in less regulated secondary markets.
The most oversaturated neighborhoods for short-term rentals in France include Le Marais, Saint-Germain, and Opera in Paris, the Vieux Port area in Marseille, and the old town centers of Nice and Bordeaux.
Neighborhoods in France that still have room for new short-term rental supply include emerging areas like La Joliette in Marseille, Parts-Dieu fringe in Lyon, and outer arrondissements of Paris near transit improvements, where regulation is lighter and competition is less intense.
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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 France, 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 |
|---|---|---|
| Notaires de France | Official notary network publishing transaction-based price data. | We used city-level purchase prices per square meter to calculate gross rental yields. We combined these with official rent data for yield estimates. |
| Observatoires des Loyers (OLL) | National rent observatory network used to inform French housing policy. | We extracted 2024 rent medians for major cities by unit size. We translated these into practical studio, one-bed, and two-bed examples. |
| OLAP Paris | Long-running official rent observatory specifically for Paris. | We used it to validate Paris rent levels and ensure consistency with national data. We treated it as a Paris-specific credibility check. |
| INSEE | France's national statistics institute with authoritative housing data. | We used INSEE for vacancy stock data and rent index information. We clearly distinguished structural vacancy from operational turnover. |
| Legifrance | Official publication site for all French legislation. | We referenced lease duration statutes and recent rental law changes. We anchored legal statements in actual French law text. |
| impots.gouv.fr | Official French tax authority with dedicated non-resident guidance. | We explained how non-residents are taxed on rental income. We clarified the difference between furnished and unfurnished tax treatment. |
| ANIL | National housing information agency tied to French public policy. | We used it to explain the rent control framework and legal basis. We referenced it when discussing what rent caps mean in practice. |
| Ministry of Ecological Transition | Official government guide on tourist rental compliance. | We used it for the 120-day limit rules and compliance checklist. We treated it as the backbone for Airbnb legality guidance. |
| AirDNA | Widely used short-term rental analytics provider with transparent metrics. | We estimated Paris short-term occupancy and average nightly rates. We treated it as private-sector data requiring cross-validation. |
| Justice.fr | Official government site summarizing French legal rules clearly. | We stated legal deposit caps and return deadlines. We used it to reduce ambiguity between furnished and unfurnished rules. |
We have made this infographic to give you a quick and clear snapshot of the property market in France. 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.