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
If you're considering buying rental property in France, understanding the actual numbers behind rental yields is essential before making any investment decision.
We constantly update this blog post to reflect the latest data on French rental yields, vacancy rates, and neighborhood-level performance.
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
- The average gross rental yield in France sits around 4.7% in early 2026, but smaller apartments in well-connected non-prime neighborhoods can push that figure above 6% with the right entry price.
- France's net yields typically land around 3.2% after accounting for taxe foncière, copropriété charges, and realistic vacancy buffers, which means investors lose roughly 1.5 percentage points from gross to net.
- The rent control framework (encadrement des loyers) in Paris and nearby areas like Plaine Commune structurally caps yields in prime arrondissements, even when demand remains strong.
- Studios in French cities deliver the highest gross yields (often 5% to 7%) but come with more tenant turnover and furnishing costs compared to family-sized apartments.
- France's national vacancy rate hovers around 7.7% of all dwellings, but in tight rental markets like Lyon Part-Dieu or central Lille, landlord vacancy typically stays below 4 weeks per year.
- The IRL (Indice de Référence des Loyers) legally constrains how fast landlords can raise rents on existing leases, which limits yield expansion even when property prices stabilize.
- Property taxes in France (taxe foncière plus TEOM) vary enormously by commune and can range from 0.4% to 0.9% of property value annually, making location selection critical for net yield.
- Grand Paris Express metro expansions are expected to boost rents in emerging areas like La Courneuve and Aubervilliers by 5% to 15% once new stations open.
- Full-service property management in France typically costs 5% to 10% of collected rent, plus a tenant placement fee often equivalent to one month's rent.
Fact-checked and reviewed by our local expert
Maxence Toulouse 🇫🇷
General Manager of Iddyl Property
What are the rental yields in France as of 2026?
What's the average gross rental yield in France as of 2026?
As of early 2026, the average gross rental yield for residential property in France is approximately 4.7%, which reflects a blend of apartments, houses, townhouses, and villas across the country.
Most typical buy-to-let properties in France fall within a gross yield range of 3.5% to 6%, depending on location, property type, and entry price.
This 4.7% national average sits slightly below what you might find in higher-yield European markets like Portugal or Spain, but it reflects France's mature and regulated rental environment.
The single most important factor influencing gross yields in France right now is the IRL (Indice de Référence des Loyers), which legally limits how much landlords can increase rents on existing leases, keeping rent growth modest even when property prices fluctuate.
What's the average net rental yield in France as of 2026?
As of early 2026, the average net rental yield in France is approximately 3.2% after deducting typical recurring costs and a realistic vacancy allowance.
This means French landlords typically see a gap of about 1.3 to 1.8 percentage points between their gross and net yields, which is standard for a country with France's tax and regulatory structure.
The expense category that most significantly reduces gross yield in France is property tax (taxe foncière), which includes the TEOM waste collection fee and can represent 0.4% to 0.9% of property value annually depending on the commune.
Most standard investment properties in France deliver net yields between 2.5% and 4%, with the higher end achievable in cities with strong renter demand and reasonable entry prices like Lille, Toulouse, or Lyon's outer neighborhoods.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in France.
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.
What yield is considered "good" in France in 2026?
In France in 2026, a gross rental yield of 5% or higher is generally considered "good" by local investors, as it means you're outperforming the national average without taking on unusual risk.
The threshold that separates average-performing properties from high-performing ones in France typically sits around 6% gross, though achieving this usually involves some trade-off such as smaller unit size, a less central location, or higher tenant turnover.
How much do yields vary by neighborhood in France as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in France can reach 2 to 4 percentage points within the same city.
The neighborhoods that typically deliver the highest rental yields in France are well-connected, practical areas that haven't been fully bid up by investors, such as Paris 18e (La Chapelle), Lyon's Guillotière, Marseille's La Joliette, or Lille's Wazemmes district.
On the other hand, the neighborhoods with the lowest yields are usually the most prestigious and supply-constrained areas, such as Paris 6e (Saint-Germain-des-Prés), Paris 7e (Invalides), Lyon's Brotteaux, or Nice's Cimiez.
The main reason yields vary so much across French neighborhoods is that property prices in prime areas are driven by wealth storage and lifestyle demand, not rental income potential, while rents are often constrained by regulation or market ceilings.
By the way, we've written a blog article detailing what are the current best areas to invest in property in France.
How much do yields vary by property type in France as of 2026?
As of early 2026, gross rental yields in France range from around 2.5% for large prestige homes and villas to 7% for well-located studios and small apartments.
Studios and compact one-bedroom apartments currently deliver the highest average gross rental yields in France, often reaching 5% to 7% because rent per square meter is significantly higher for smaller units.
Large houses and prestige villas in prime locations deliver the lowest average gross yields in France, typically between 2.5% and 4.5%, because their high purchase prices aren't matched by proportionally higher rents.
The key reason yields differ between property types in France is that smaller units command higher rent per square meter while their purchase prices don't scale proportionally, creating a yield premium for compact properties.
By the way, you might want to read the following:
What's the typical vacancy rate in France as of 2026?
As of early 2026, France's structural vacancy rate sits at approximately 7.7% of all dwellings, though this includes properties vacant for many reasons beyond rental turnover.
For active landlords, vacancy rates across different French neighborhoods typically range from 2 to 4 weeks per year in tight markets like Paris or Lyon, up to 6 to 10 weeks in weaker-demand areas.
The main factor driving vacancy rates up or down in France is local employment and transport connectivity, with areas near major job centers and well-served by metro or tram lines experiencing the fastest tenant turnover.
France's overall vacancy rate is comparable to other mature European markets, though it's higher than ultra-tight rental markets like Munich or Amsterdam where structural housing shortages keep vacancy extremely low.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in France.
What's the rent-to-price ratio in France as of 2026?
As of early 2026, the average rent-to-price ratio in France is approximately 0.39% monthly, which translates to about 4.7% annually and is essentially equivalent to the gross rental yield.
A rent-to-price ratio above 0.42% monthly (or 5% annually) is generally considered favorable for buy-to-let investors in France, as it indicates the property generates above-average income relative to its purchase price.
France's rent-to-price ratio is moderate compared to other European countries, sitting lower than high-yield markets like parts of Eastern Europe but higher than premium markets like central London or Zurich where capital appreciation dominates returns.
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.
Which neighborhoods and micro-areas in France give the best yields as of 2026?
Where are the highest-yield areas in France as of 2026?
As of early 2026, some of the highest-yield neighborhoods in France include Paris 18e (La Chapelle and Marx Dormoy), Paris 19e (La Villette), Lyon's Guillotière district, Marseille's La Joliette area, and Lille's Wazemmes neighborhood.
In these top-performing areas, gross rental yields typically range from 5.5% to 7.5%, significantly above the national average of 4.7%.
The main characteristic these high-yield areas share is strong renter demand driven by good transport links and practical amenities, combined with purchase prices that haven't been fully bid up by investors or lifestyle buyers.
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 France.
Where are the lowest-yield areas in France as of 2026?
As of early 2026, the lowest-yield neighborhoods in France include Paris 6e (Saint-Germain-des-Prés), Paris 7e (Invalides), Paris 16e (Passy and Auteuil), Lyon's Brotteaux district, and Nice's Cimiez area.
In these prestigious locations, gross rental yields typically range from just 2.5% to 3.5%, well below the national average.
The main reason yields are compressed in these areas is that property prices are driven by wealth preservation and prestige rather than rental income, while rents remain constrained by market ceilings and regulatory frameworks.
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 France.
Which areas have the lowest vacancy in France as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy rates in France include central Paris near major metro interchanges, Lyon Part-Dieu, Toulouse's Rangueil district near universities, and Montpellier's central tram-connected zones.
In these low-vacancy areas, landlords typically experience vacancy rates of just 2% to 4% annually, which translates to roughly 1 to 2 weeks of turnover per year.
The main demand driver keeping vacancy low in these areas is the concentration of employment, universities, or excellent transport links that create constant "life demand" from students, young professionals, and mobile workers.
The trade-off investors typically face when targeting these low-vacancy areas is higher entry prices and lower gross yields, since the certainty of occupancy is already priced into property values.
Which areas have the most renter demand in France right now?
The neighborhoods currently experiencing the strongest renter demand in France include central Paris and close-in suburbs like Plaine Commune, Lyon's Part-Dieu and Jean Macé areas, and Bordeaux's Gare Saint-Jean and Saint-Michel districts.
The renter profiles driving most of the demand in these areas are young professionals seeking proximity to employment centers, students near universities, and small households prioritizing transport convenience over space.
In these high-demand neighborhoods, rental listings typically get filled within 1 to 3 weeks, and landlords often receive multiple applications for well-priced, well-located units.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in France.
Which upcoming projects could boost rents and rental yields in France as of 2026?
As of early 2026, the top infrastructure projects expected to boost rents in France include Grand Paris Express metro extensions, Marseille's Euroméditerranée regeneration phase 2, and Lyon Part-Dieu district upgrades.
The neighborhoods most likely to benefit from these projects include Plaine Commune and Est Ensemble in the Paris suburbs (near new Grand Paris Express stations), La Joliette in Marseille, and areas surrounding Lyon's Part-Dieu business district.
Investors might realistically expect rent increases of 5% to 15% in these areas once the projects are completed and accessibility improves, though timing depends on construction progress and local absorption.
You'll find our latest property market analysis about France here.
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What property type should I buy for renting in France as of 2026?
Between studios and larger units in France, which performs best in 2026?
As of early 2026, studios and small one-bedroom apartments generally outperform larger units in terms of gross rental yield in France, though larger units often provide steadier occupancy with less tenant turnover.
Studios in France typically deliver gross yields of 5% to 7% (roughly €700 to €1,000 per month for a €200,000 property, or $750 to $1,070 USD), while larger two to three bedroom apartments usually yield 3.5% to 5%.
The main factor explaining why studios outperform is that rent per square meter is significantly higher for compact units, and many French cities have strong demand from students, young professionals, and post-separation households seeking affordable solo housing.
However, larger units might be the better investment choice if you're targeting families relocating for work or seeking long-term, stable tenants who are less likely to move frequently.
What property types are in most demand in France as of 2026?
As of early 2026, studios and one-bedroom apartments are the most in-demand property type for renters in France, driven by affordability constraints and the growing number of single-person households.
The top three property types ranked by current renter demand in France are studios and one-bedrooms (highest demand), two-bedroom apartments in major metros (strong demand), and three-bedroom houses in suburban rings (steady family demand).
The primary demographic trend driving this demand pattern is the increase in young professionals, students, and post-separation households who prioritize location and transport access over space.
Large luxury apartments and prestige villas are currently underperforming in rental demand and likely to remain so, as the rental pool for high-end properties is much smaller and more price-sensitive.
What unit size has the best yield per m² in France as of 2026?
As of early 2026, units between 20 and 35 square meters (studios and compact one-bedrooms) deliver the best gross rental yield per square meter in France.
For this optimal unit size in France, the typical gross yield per square meter translates to roughly €25 to €35 monthly rent per square meter in major cities (approximately $27 to $38 USD or €25 to €35 EUR), compared to €15 to €22 for larger family apartments.
The main reason smaller or larger units have lower yield per square meter is that very small studios can be harder to rent in some markets due to livability concerns, while larger apartments face lower rent-per-square-meter rates because tenants aren't willing to pay proportionally more for extra space.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable 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 costs cut my net yield in France as of 2026?
What are typical property taxes and recurring local fees in France as of 2026?
As of early 2026, annual property tax (taxe foncière including TEOM waste collection) for a typical rental apartment in France ranges from €800 to €2,500 (approximately $860 to $2,680 USD), depending heavily on the commune and property size.
Beyond property tax, French landlords must also budget for non-recoverable copropriété charges (the owner's share of building maintenance and sinking funds), which typically add €500 to €2,000 annually ($535 to $2,145 USD) for an apartment.
Combined, these taxes and fees typically represent 8% to 15% of gross rental income in France, making them a significant factor in the gap between gross and net yields.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in France.
What insurance, maintenance, and annual repair costs should landlords budget in France right now?
Annual landlord insurance (assurance propriétaire non-occupant) for a typical rental property in France costs approximately €150 to €400 (roughly $160 to $430 USD), depending on property value and coverage level.
French landlords should budget approximately 0.3% to 0.6% of property value annually for maintenance and repairs, which translates to €600 to €1,800 ($645 to $1,930 USD) for a €300,000 property.
The repair expense that most commonly catches French landlords off guard is major copropriété works (ravalement de façade, roof repairs, elevator replacement), which can result in unexpected special assessments of several thousand euros.
In total, landlords should realistically budget €1,000 to €2,500 annually ($1,070 to $2,680 USD) for the combined cost of insurance, routine maintenance, and a repair reserve.
Which utilities do landlords typically pay, and what do they cost in France right now?
In standard French long-term rentals, tenants typically pay for electricity, gas, internet, and often water directly, while landlords cover non-recoverable building charges and certain shared-building contract items that cannot legally be passed to tenants.
Since most utilities are tenant-paid in French unfurnished rentals, landlords typically face minimal direct utility costs, usually just €20 to €50 monthly ($21 to $54 USD) for any shared building services not recoverable from tenants.
What does full-service property management cost, including leasing, in France as of 2026?
As of early 2026, full-service property management in France typically costs 5% to 10% of collected rent monthly, which translates to roughly €40 to €100 per month ($43 to $107 USD) for a property renting at €1,000.
On top of ongoing management, tenant placement or leasing fees in France commonly equal about one month's rent (€800 to €1,200 or $860 to $1,290 USD for a typical apartment), though fee structures vary by agency and city.
What's a realistic vacancy buffer in France as of 2026?
As of early 2026, landlords in France should set aside approximately 6% of annual rental income as a vacancy buffer, which provides a reasonable cushion for tenant turnover and reletting periods.
In practice, this translates to roughly 3 weeks of vacancy per year for a typical rental property in France, though landlords in tight markets like Paris or Lyon may experience less, while those in weaker-demand areas should budget for 6 to 10 weeks.
Buying real estate in France 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 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 |
|---|---|---|
| INSEE House Price Index | INSEE is France's official statistics office, making it the most reliable reference for nationwide housing price trends. | We used it to anchor where sale prices were heading going into early 2026. We use it as a reality check so yield estimates don't rely on private portals alone. |
| Notaires de France | Notaires de France reflects notarized transaction data, which is about as close to real sale prices as you can get. | We used it to cross-check sale price direction and transaction context. We use it to verify city-level pricing assumptions. |
| IGEDD Long-Run Housing Data | IGEDD is a government body publishing long-run, methodology-documented housing series for France. | We used it to understand how rents and prices move together over time in France. We use it to keep yield conclusions consistent with long-run relationships. |
| Observatoires des Loyers (OLL) | This is the official network for local rent observatories tied to French public housing policy. | We used it to ground rent levels in measured data rather than just listings. We use it to compare rent intensity across major metro areas. |
| data.gouv.fr OLL Datasets | data.gouv.fr is the French government's open data platform with traceable datasets and update schedules. | We used it to anchor typical private-sector rents (€ per square meter) across covered cities. We use it as the backbone for rent-to-price and yield calculations. |
| OLAP Paris Rent Observatory | OLAP is the long-standing, officially recognized rent observatory for the Paris metropolitan area. | We used it to anchor Paris-specific rent realities, where rules and dynamics differ from the rest of France. We use it to inform neighborhood yield dispersion in Paris. |
| DRIHL Île-de-France Rent Control | DRIHL is a state service and its rent control references are part of the legally enforceable framework in Paris. | We used it to reflect that headline rents can be constrained in Paris and nearby areas. We use it to explain why some high-price neighborhoods show structurally lower yields. |
| INSEE IRL Index | This is the official index used to legally update many residential rents in France each year. | We used it to frame rent growth constraints going into 2026. We use it to keep future rent expectations conservative and France-specific. |
| impots.gouv.fr Property Tax Guide | This is the French tax authority explaining the actual property tax calculation method. | We used it to model net yields using the correct tax base logic. We use it to explain why taxes can vary significantly by commune. |
| economie.gouv.fr Taxe Foncière Overview | This is the Ministry of Economy's consumer-facing reference on local property tax in France. | We used it to verify what's included and excluded in taxe foncière calculations. We use it to keep the costs that cut net yield section accurate. |
| ANIL Charge Allocation Guide | ANIL is France's national housing information agency and a reliable reference on landlord-tenant rules. | We used it to split costs correctly between landlord and tenant for net yield calculations. We use it to highlight which charges typically stay with the owner. |
| INSEE Housing Stock Focus | This is an official snapshot of France's housing stock and vacancy rates at the national level. | We used it to anchor a national vacancy benchmark going into 2026. We use it to keep vacancy assumptions from being too optimistic. |
| ADEME Batizoom Vacancy Indicator | ADEME is a major French public agency and its indicator pages are sourced and dated. | We used it as a second public cross-check on vacancy magnitude and framing. We use it to confirm that vacancy is a structural feature in France. |
| CLAMEUR Press Pack November 2025 | CLAMEUR is a long-running private-sector rent observatory with methodology-rich publications. | We used it to triangulate market rent levels and yield trends. We use it as a measured private-market complement to public datasets. |
| Global Property Guide France | This is a well-known international property data publisher with a transparent yield-by-city format. | We used it to anchor a single-number gross yield estimate for early 2026. We use it as a top-down check against our rent divided by price calculations. |
| FRED BIS Property Price Series | FRED republishes BIS-linked series with consistent documentation and easy verification. | We used it to cross-check that France's price trend isn't an artifact of any single source. We use it to keep the macro context honest. |
| FNAIM Property Management Guide | FNAIM is a major national real estate federation and a standard reference for market practices in France. | We used it to frame what full-service management typically includes and costs. We use it to justify realistic management cost assumptions in net yields. |
| Préfectures Régions Île-de-France | This is official state communication on rent control renewal for Paris suburban areas. | We used it to track where rent frameworks apply and how they affect yields. We use it to identify areas where infrastructure projects may boost rents. |
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