Authored by the expert who managed and guided the team behind the Hungary Property Pack
Everything you need to know before buying real estate is included in our Hungary Property Pack
If you're thinking about buying rental property in Hungary, understanding what kind of return you can realistically expect is essential before making any investment decision.
We've gathered fresh data from official Hungarian sources, cross-checked it with international databases, and analyzed recent market trends to give you accurate yield figures for early 2026.
This article is updated regularly to reflect the latest changes in Hungary's rental market, so the numbers you see here are as current as possible.
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 Hungary.
Insights
- Hungary's gross rental yields average around 5% in early 2026, but Budapest's prime District V often drops below 4% because purchase prices have risen faster than rents.
- The gap between gross and net yields in Hungary typically runs 1.2 to 1.5 percentage points once you factor in vacancy, maintenance, and local building taxes where they apply.
- District VIII in Budapest consistently delivers some of the highest yields at 5.5% to 6.5% gross, partly because property prices there remain lower than central districts.
- Hungary does not have a universal annual property tax, but some municipalities charge a building tax of up to HUF 1,100 per square meter, which can meaningfully affect net returns.
- Debrecen stands out among regional cities because BMW's new plant is creating strong rental demand, pushing yields higher than in many comparable Hungarian towns.
- Studios and one-bedroom apartments in Hungary typically yield 0.5 to 1.5 percentage points more than larger family homes because rent per square meter is higher for smaller units.
- Budapest's vacancy rate sits around 4% in early 2026, tighter than the national average of 5%, which means landlords in the capital face shorter void periods between tenants.
- A short-term rental ban in Budapest's District VI took effect on January 1, 2026, which may push some units into the long-term market and soften rents locally.
What are the rental yields in Hungary as of 2026?
What's the average gross rental yield in Hungary as of 2026?
As of early 2026, the average gross rental yield across Hungary's residential market sits at approximately 5% per year, meaning landlords typically collect annual rent equal to about 5% of their property's purchase price before any expenses.
That said, the realistic range for most residential properties in Hungary spans from around 4.3% in expensive neighborhoods to roughly 6.2% in more affordable areas with strong tenant demand.
Hungary's average yield compares favorably to many Western European capitals, where gross yields often fall below 4%, though it trails some Eastern European neighbors where entry prices remain lower.
The single biggest factor shaping gross yields in Hungary right now is that property prices have been climbing faster than rents, which the National Bank of Hungary has flagged as a sign of yield compression across the market.
What's the average net rental yield in Hungary as of 2026?
As of early 2026, the average net rental yield in Hungary comes in at around 3.7% per year, which is what remains after subtracting vacancy losses, maintenance costs, insurance, and typical operating expenses from your gross rent.
The gap between gross and net yields in Hungary usually runs between 1.2 and 1.5 percentage points, depending on the property's age, location, and whether you use professional management.
For most Hungarian landlords, the expense that takes the biggest bite out of gross yield is the combination of vacancy buffer and maintenance costs, especially in older apartment buildings where repairs tend to be more frequent.
Across standard investment properties in Hungary, net yields typically range from about 3% in prime Budapest locations to around 4.5% in well-located regional cities or value neighborhoods with steady tenant demand.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Hungary.
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.
What yield is considered "good" in Hungary in 2026?
In Hungary's residential rental market, a gross yield of 5.5% or higher is generally considered good by local investors, while anything above 6% is viewed as very good and typically requires buying in a value neighborhood or finding a below-market deal.
The threshold that separates average performers from high performers in Hungary is roughly that 5.5% mark, because the national average hovers around 5%, and the central bank's data shows that strong price growth has made it harder to achieve premium yields in sought-after areas.
How much do yields vary by neighborhood in Hungary as of 2026?
As of early 2026, the spread in gross rental yields between the highest-yield and lowest-yield neighborhoods in Hungary can reach 2 to 3 percentage points, which means location choice has a major impact on your investment returns.
Neighborhoods that typically deliver the highest rental yields in Hungary are inner-city but not premium areas with good transit access and strong renter demand, such as Budapest's District VIII (Józsefváros), parts of District VII (Erzsébetváros), and select pockets of District IX (Ferencváros).
On the other end, the lowest yields in Hungary tend to appear in prime, expensive neighborhoods where purchase prices are high relative to achievable rents, including Budapest's District V (Belváros-Lipótváros), District I near the Castle District, and premium parts of District II.
The main reason yields vary so dramatically across Hungarian neighborhoods is simply that property prices in prestigious areas have outpaced rental growth, while more affordable districts still offer better rent-to-price math for investors.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Hungary.
How much do yields vary by property type in Hungary as of 2026?
As of early 2026, gross rental yields across different property types in Hungary range from around 3.5% for large family homes and premium new-builds up to roughly 6.5% for well-located studios and compact apartments in value areas.
The property type that currently delivers the highest average gross rental yield in Hungary is the small apartment, particularly studios and one-bedroom units, because tenants pay a premium per square meter for convenience and location.
Conversely, larger apartments, detached family houses, and brand-new premium units tend to deliver the lowest gross yields in Hungary because their higher purchase prices are not fully matched by proportionally higher rents.
The key reason yields differ between property types in Hungary comes down to the tenant pool: small units attract more renters (students, young professionals, expats), creating competition that supports stronger rent-to-price ratios.
By the way, you might want to read the following:
What's the typical vacancy rate in Hungary as of 2026?
As of early 2026, the estimated average residential vacancy rate in Hungary sits at around 5% nationally, which translates to roughly two to three weeks of lost rent per year for a typical long-term rental property.
Across different neighborhoods in Hungary, vacancy rates can range from as low as 3% to 4% in high-demand Budapest districts up to 6% to 8% in smaller towns or areas with weaker rental demand.
The main factor driving vacancy rates in Hungary right now is the strength of local job and university markets, because areas with concentrated employment and student populations fill vacancies faster than purely residential zones.
Hungary's vacancy rate compares favorably to many European markets, with Budapest running tighter than the national average due to the capital's deep pool of renters including young professionals, students, and expats.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Hungary.
What's the rent-to-price ratio in Hungary as of 2026?
As of early 2026, the average monthly rent-to-price ratio in Hungary is approximately 0.42%, meaning monthly rent typically equals about 0.42% of a property's purchase price, which works out to roughly 5% annually.
A rent-to-price ratio of 0.45% or higher is generally considered favorable for buy-to-let investors in Hungary, and this metric directly equals your gross rental yield when annualized, so tracking it helps you quickly compare investment opportunities.
Hungary's rent-to-price ratio sits in a middle ground compared to regional peers: it's better than many Western European capitals where ratios often fall below 0.35%, but not as high as some less developed Eastern European markets where property prices remain lower.
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.
Which neighborhoods and micro-areas in Hungary give the best yields as of 2026?
Where are the highest-yield areas in Hungary as of 2026?
As of early 2026, the top three highest-yield neighborhoods in Hungary are Budapest's District VIII (Józsefváros), parts of District VII (Erzsébetváros), and select pockets of District IX (Ferencváros), all of which combine relatively affordable purchase prices with strong rental demand.
In these top-performing Budapest districts, gross rental yields typically range from 5.5% to 6.5%, with District VIII often reaching the higher end of that range because property prices there have not climbed as fast as in more central areas.
The main characteristic these high-yield areas share is that they offer good public transit connections and attract a steady stream of students, young professionals, and budget-conscious expats without commanding the premium prices of Budapest's most prestigious districts.
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 Hungary.
Where are the lowest-yield areas in Hungary as of 2026?
As of early 2026, the three lowest-yield neighborhoods in Hungary are Budapest's District V (Belváros-Lipótváros), District I around the Castle District, and premium hillside areas of District II, where prestigious addresses command high prices that rents cannot match.
In these low-yield Budapest areas, gross rental yields typically fall between 3.5% and 4.5%, because the same prestige that attracts buyers also pushes purchase prices far above what long-term tenants are willing to pay in rent.
The main reason yields are compressed in these areas of Hungary is straightforward: property prices have risen much faster than rents, driven by demand from owner-occupiers and investors seeking capital appreciation rather than income.
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 Hungary.
Which areas have the lowest vacancy in Hungary as of 2026?
As of early 2026, the three neighborhoods with the lowest residential vacancy rates in Hungary are Budapest's District XIII (Újlipótváros and Angyalföld), District XI (Újbuda), and District IX (Ferencváros), all of which benefit from multiple overlapping tenant pools.
In these low-vacancy Budapest districts, vacancy rates typically run between 2% and 4%, meaning landlords often experience just one to two weeks of vacancy per year when tenants turn over.
The main demand driver keeping vacancy low in these areas is the combination of strong job markets, major universities, good metro access, and liveable urban amenities that attract a diverse mix of students, young professionals, and families.
The trade-off investors face when targeting these low-vacancy areas is that strong demand also pushes purchase prices higher, which can compress gross yields even though the income stream is more reliable.
Which areas have the most renter demand in Hungary right now?
The three neighborhoods currently experiencing the strongest renter demand in Hungary are Budapest's District XI (Újbuda) near the universities, District XIII (Újlipótváros) along the Danube, and Debrecen's central districts near the university and new industrial zones.
The renter profile driving most of the demand in these areas includes young professionals working in Budapest's office districts, university students at major institutions, and increasingly, skilled workers relocating for industrial jobs in places like Debrecen.
In these high-demand neighborhoods, well-priced rental listings typically get filled within one to two weeks, and desirable properties in good condition often receive multiple inquiries within days of being advertised.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Hungary.
Which upcoming projects could boost rents and rental yields in Hungary as of 2026?
As of early 2026, the three upcoming developments most likely to boost rents in Hungary are the continued ramp-up of BMW's Debrecen plant creating workforce housing demand, proposed Budapest airport rail link improvements, and the ripple effects of District VI's short-term rental ban pushing units into the long-term market.
The neighborhoods most likely to benefit from these projects include Debrecen's areas near the new industrial zone, Budapest districts along the potential airport rail corridor near Nyugati station, and ironically District VI itself where increased long-term supply may attract tenants seeking central locations.
Once these projects mature, investors might realistically expect rent increases of 5% to 15% in directly affected neighborhoods, though timing varies: Debrecen's industrial impact is already underway, while the airport rail link remains in planning stages.
You'll find our latest property market analysis about Hungary here.
Get fresh and reliable information about the market in Hungary
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What property type should I buy for renting in Hungary as of 2026?
Between studios and larger units in Hungary, which performs best in 2026?
As of early 2026, studios and one-bedroom apartments outperform larger units in Hungary on both rental yield and occupancy, making them the better choice for investors focused on maximizing returns.
Studios in good Budapest locations typically yield around 5.5% to 6.5% gross (roughly HUF 2.5 to 3 million annually on a HUF 45 million property, or about 6,500 to 7,800 euros / 6,800 to 8,200 USD), while larger two- to three-bedroom units often yield only 4% to 5% gross.
The main factor explaining this difference is that tenants in Hungary pay more per square meter for compact, well-located units because they prioritize convenience and transit access over extra space.
However, larger units can be the better investment choice when targeting families or corporate relocations in Hungary, as these tenants tend to stay longer and create less turnover, which reduces vacancy and re-letting costs over time.
What property types are in most demand in Hungary as of 2026?
As of early 2026, the most in-demand property type in Hungary's rental market is the well-located apartment, particularly modern or renovated units near public transit in Budapest and major regional cities.
Ranked by current tenant demand in Hungary, the top three property types are: efficient one- to two-bedroom apartments in urban centers, good-condition older "brick" apartments with character, and compact new-build units in well-connected developments.
The primary demographic trend driving this demand pattern is Hungary's growing population of young professionals and students who prioritize location and convenience over space, combined with an expat community seeking turnkey rental options.
One property type that is currently underperforming in demand and likely to remain so in Hungary is the large detached family house in suburban or rural areas, which attracts a smaller tenant pool and often sits vacant longer between rentals.
What unit size has the best yield per m² in Hungary as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Hungary is between 25 and 50 square meters, which covers studios and compact one-bedroom apartments.
For this optimal unit size in Hungary, the typical gross rental yield per square meter works out to around HUF 55,000 to 70,000 annually (roughly 145 to 185 euros or 150 to 195 USD per square meter per year), compared to just HUF 40,000 to 50,000 for larger units.
The main reason smaller units achieve higher yield per square meter in Hungary is that renters pay a premium for location and convenience, while larger apartments cannot command proportionally higher rents to offset their greater purchase cost.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Hungary.
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 costs cut my net yield in Hungary as of 2026?
What are typical property taxes and recurring local fees in Hungary as of 2026?
As of early 2026, Hungary does not have a universal annual property tax, but some municipalities charge a local building tax of up to HUF 1,100 per square meter (around 2.90 euros or 3 USD per square meter), which for a 50-square-meter apartment could mean up to HUF 55,000 annually (about 145 euros or 150 USD).
Beyond potential building taxes, landlords in Hungary must budget for apartment common charges (which can run HUF 15,000 to 40,000 monthly, or roughly 40 to 105 euros / 42 to 110 USD, in Budapest buildings with elevators), plus the 15% flat personal income tax on rental income.
These taxes and fees typically represent between 5% and 15% of gross rental income in Hungary, depending heavily on whether your municipality actually levies a building tax and whether your building has high common charges.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Hungary.
What insurance, maintenance, and annual repair costs should landlords budget in Hungary right now?
Annual landlord insurance for a typical rental apartment in Hungary costs around HUF 30,000 to 75,000 (roughly 80 to 200 euros or 85 to 210 USD), which is relatively modest but should not be skipped given the protection it provides.
For maintenance and repairs, Hungary landlords should budget approximately 0.8% to 1.2% of property value annually, which for a HUF 50 million apartment means setting aside around HUF 400,000 to 600,000 per year (about 1,050 to 1,580 euros or 1,100 to 1,650 USD).
The repair expense that most commonly catches landlords off guard in Hungary is plumbing and heating system failures in older buildings, especially those with aging infrastructure that can require expensive emergency fixes.
In total, landlords in Hungary should realistically budget around HUF 450,000 to 700,000 annually (approximately 1,180 to 1,840 euros or 1,240 to 1,930 USD) for combined insurance, maintenance, and repairs on a typical rental property.
Which utilities do landlords typically pay, and what do they cost in Hungary right now?
In Hungary, tenants typically pay all consumption-based utilities including electricity, gas or district heating, and water, while landlords may cover some portion of building common charges and occasionally internet if targeting expat tenants.
When landlords do cover utilities in Hungary (usually only partially, such as internet or a common-charge contribution), the monthly cost typically runs HUF 10,000 to 25,000 (around 26 to 66 euros or 28 to 69 USD), though this varies significantly by lease structure and property type.
What does full-service property management cost, including leasing, in Hungary as of 2026?
As of early 2026, full-service property management in Hungary typically costs between 6% and 10% of monthly rent (plus VAT), which on a HUF 250,000 monthly rent means roughly HUF 15,000 to 25,000 per month (about 40 to 66 euros or 42 to 69 USD).
On top of ongoing management, the typical tenant-placement or leasing fee in Hungary is around one month's rent (sometimes plus VAT), so for that same HUF 250,000 property, expect to pay approximately HUF 250,000 to 315,000 (roughly 660 to 830 euros or 690 to 870 USD) each time you need a new tenant.
What's a realistic vacancy buffer in Hungary as of 2026?
As of early 2026, landlords in Hungary should set aside approximately 4% to 5% of annual rental income as a vacancy buffer, with Budapest properties closer to 4% and regional cities or weaker-demand areas potentially needing 6% to 8%.
This vacancy buffer translates to roughly two to three weeks of vacant time per year for a typical Hungary rental property, accounting for turnover between tenants, minor repairs, and re-letting time.
Buying real estate in Hungary 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 Hungary, 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) Housing Portal | KSH is Hungary's official government statistics agency, making it the most reliable source for housing price and rent data in the country. | We used it to anchor official trends for rents and prices in Hungary. We also used it to validate private-sector yield estimates against national data. |
| KSH-ingatlan.com Rent Index | This is an official KSH publication built in partnership with Hungary's largest property portal, with transparent methodology. | We used it to quantify recent rent growth for Hungary and Budapest specifically. We then translated that into yield implications for early 2026. |
| National Bank of Hungary (MNB) Housing Market Report | As Hungary's central bank, MNB provides authoritative analysis on house prices versus rents and overall market health. | We used it to justify yield compression trends where prices rise faster than rents. We also used its commentary to explain why high yields are harder to find in prime areas. |
| Global Property Guide Hungary Rental Yields | Global Property Guide is a long-running, transparent international dataset widely used for cross-country yield comparisons. | We used it as the numeric baseline for gross yields in Hungary and Budapest. We then adjusted forward using official rent and price growth data. |
| Eurostat Housing Price Statistics | Eurostat is the EU's official statistics body with harmonized methods across all member countries. | We used it as an external cross-check that Hungary's house price dynamics align with broader EU patterns. We also used it to keep our narrative consistent with EU measurement standards. |
| Eurostat Natural Gas Price Statistics | This is an official EU statistical publication that includes Hungary's household gas price ranking among member states. | We used it to support realistic utility cost assumptions that impact net yields. We also used it to explain why tenant-paid utilities are standard practice in Hungary. |
| Eurostat Household Electricity Prices Release | This is an official Eurostat news release tied to a specific dataset and time period for electricity costs. | We used it to frame electricity as a meaningful operating cost consideration. We also used it to avoid relying on unofficial tariff information. |
| KSH Weekly Monitor Energy | Published by KSH using data from Hungary's energy regulator (MEKH), this provides current household energy price context. | We used it to ground late-2025 electricity and gas pricing relevant to early 2026 budgeting. We then translated that into landlord and tenant cost-sharing realities. |
| NAV (National Tax and Customs Administration) | NAV is Hungary's official tax authority and the definitive reference for how personal taxation works in the country. | We used it as the official anchor that rental income is taxed under Hungary's personal income tax system. We paired it with practical guidance from tax advisors for clarity. |
| PwC Tax Summaries Hungary | PwC is a Big 4 accounting firm that maintains regularly updated, verifiable tax references for investors. | We used it to explain Hungary's flat 15% personal income tax rate and how rental income is typically calculated. We treated it as an explanatory layer, not a substitute for official NAV guidance. |
| RSM Hungary Real Estate Overview | RSM is a major international tax and advisory firm with clearly stated statutory maximums for Hungarian property taxes. | We used it to quantify the legal cap for local building tax, which matters for worst-case net yield budgeting. We also used it to emphasize that property taxes are municipal and vary by location. |
| RE/MAX Hungary Housing Market Report | RE/MAX is a major brokerage brand publishing market statistics with cited references including MNB data. | We used it to cross-check price-per-square-meter levels across Budapest districts. We also used it to interpret how market liquidity differs by property segment. |
| Hungary Today (District VI Rental Ban) | Hungary Today is a mainstream English-language news outlet reporting on a specific legal decision with a clear effective date. | We used it to flag Budapest's District VI short-term rental ban effective January 1, 2026. We then explained how this could shift some units to long-term supply and affect local yields. |
| BMW Group Plant Debrecen | This is a primary source directly from the investor and employer, requiring no interpretation of timing or scale. | We used it to justify why Debrecen has structurally different rental demand compared to other Hungarian regional cities. We then connected it to yield opportunities outside Budapest. |
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