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Everything you need to know before buying real estate is included in our Italy Property Pack
Rents in Italy vary enormously, with Milan and Florence often costing three times as much as smaller southern towns.
In this article, we break down current rental prices in Italy for tenants and investors alike.
We constantly update this blog post to ensure you always have the freshest data.
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 Italy.
Insights
- The average rent per square meter in Italy in 2026 is around €15, but in central Milan it exceeds €25, while in southern towns it may stay under €8.
- A typical 1-bedroom apartment in Italy rents for about €850 per month nationally, but in Florence or Milan it can easily reach €1,400 or more.
- Rental listings in high-demand Italian neighborhoods like Porta Nuova in Milan often disappear within 10 to 20 days.
- Student and transitory rental contracts are growing faster than traditional long-term leases, pushing up demand for furnished apartments near universities.
- Italy's rental vacancy rate in major cities sits between 1% and 3% in 2026, among the tightest in Western Europe.
- The cedolare secca flat tax lets landlords pay just 21% on rental income, but choosing it means giving up annual inflation-based rent increases.
- Peak rental demand in Italy hits between July and October, when universities restart and job relocations spike.
- Expats cluster in neighborhoods like Prati in Rome, Brera in Milan, and Oltrarno in Florence for international schools and English-speaking services.
- Having an elevator adds a noticeable rent premium in Italian cities because many older buildings lack one.
- Rent growth in Italy in 2026 is expected to moderate to 3% to 4% nationally, after 5% to 8% increases in 2025.
What are typical rents in Italy as of 2026?
What's the average monthly rent for a studio in Italy as of 2026?
As of January 2026, the average monthly rent for a studio in Italy is around €500 ($540 USD or £420).
Most studios rent between €400 and €650 per month, depending on furnishing and location centrality.
The main factors causing studio rents to vary in Italy are the city (Milan and Florence versus Palermo or Bari), building age, energy efficiency, and proximity to metro stations or universities.
What's the average monthly rent for a 1-bedroom in Italy as of 2026?
As of January 2026, the average monthly rent for a 1-bedroom in Italy is around €850 ($920 USD or £720).
Most 1-bedroom apartments rent between €700 and €1,050 per month, depending on location and condition.
The cheapest 1-bedroom rents in Italy are in southern cities like Catania and Bari, while the most expensive are in central Milan (Brera, Porta Nuova), Florence's Centro Storico, and Rome's Parioli.
What's the average monthly rent for a 2-bedroom in Italy as of 2026?
As of January 2026, the average monthly rent for a 2-bedroom in Italy is around €1,200 ($1,300 USD or £1,020).
Most 2-bedroom apartments rent between €950 and €1,500 per month, with significant city and neighborhood variation.
The cheapest 2-bedroom rents are in Palermo, Catania, and inland Puglia, while the most expensive are in Milan's CityLife, Rome's Centro Storico, and Florence's historic center.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Italy.
What's the average rent per square meter in Italy as of 2026?
As of January 2026, the average rent per square meter in Italy is around €14.80 per month ($16 USD or £12.50).
Rent per square meter ranges from about €8 in smaller southern towns to over €22 in prime Milan districts.
Compared to other European capitals, Italy remains more affordable than Paris, London, or Munich, but Milan's prime areas now compete with Amsterdam and Barcelona.
Properties with elevators, air conditioning, balconies, high energy ratings, and metro proximity typically command above-average rents in Italy.
How much have rents changed year-over-year in Italy in 2026?
As of January 2026, rents in Italy have increased approximately 3.5% year-over-year, though Milan and Florence have seen 5% to 7%.
The main drivers are continued demand from students and mobile workers, gradually increasing supply, and ongoing inflation prompting landlord adjustments.
This represents a moderation from 2025's hotter 5% to 8% growth, suggesting the market is stabilizing while rents still rise.
What's the outlook for rent growth in Italy in 2026?
As of January 2026, Italy expects moderate rent growth of 2% to 4% nationally, with hot spots like Milan and Bologna likely seeing 4% to 7%.
Key factors include strong student mobility, young workers preferring renting, and competition between long-term and short-term rentals.
Neighborhoods like Isola and NoLo in Milan, San Lorenzo in Rome, and university areas in Bologna should see the strongest growth.
Risks include potential short-term rental regulation changes, interest rate shifts, and economic slowdowns dampening demand.
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 rent best in Italy as of 2026?
Which neighborhoods have the highest rents in Italy as of 2026?
As of January 2026, the highest rents in Italy are in Porta Nuova and Brera in Milan (€25-30/sqm), Centro Storico in Florence (€22-26/sqm), and Parioli in Rome (€20-24/sqm).
These neighborhoods command premiums due to prestigious addresses, historic architecture, walkability, and limited housing supply near business districts.
Typical tenants are senior executives, wealthy expats at multinationals, and affluent professionals prioritizing prestige over value.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Italy.
Where do young professionals prefer to rent in Italy right now?
Young professionals prefer Isola and Navigli in Milan, San Lorenzo and Ostiense in Rome, and San Salvario in Turin for nightlife, coworking, and transit access.
Typical rents in these areas range from €800 to €1,300 for a 1-bedroom ($870-$1,400 USD), balancing affordability with urban convenience.
Key attractions include cafes, bike-friendly streets, metro proximity, and vibrant social scenes without premium-area prices.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Italy.
Where do families prefer to rent in Italy right now?
Families prefer Monteverde and EUR in Rome, CityLife and Pagano-Magenta in Milan, and Campo di Marte in Florence for space, quiet streets, and parks.
Typical rents for 2-3 bedroom apartments in these areas range from €1,400 to €2,200 ($1,520-$2,380 USD).
These neighborhoods offer reputable schools, green spaces, lower traffic, and residential community feel.
Top schools nearby include St. George's British International in Rome, American School of Milan, and International School of Florence.
Which areas near transit or universities rent faster in Italy in 2026?
As of January 2026, the fastest-renting areas are Citta Studi near Politecnico di Milano, Zona Universitaria in Bologna, and San Lorenzo near Sapienza in Rome.
Properties in these areas stay listed just 10 to 20 days, versus the 35-day national average.
The rent premium for transit or university proximity is €50 to €150 per month ($55-$165 USD) above comparable units further away.
Which neighborhoods are most popular with expats in Italy right now?
Expats favor Prati and Parioli in Rome, Brera and Porta Romana in Milan, and Oltrarno in Florence for international amenities.
Typical rents range from €1,200 to €2,000 for 1-2 bedrooms ($1,300-$2,170 USD).
These areas offer international schools, English-speaking medical facilities, coworking spaces, and walkable cultural attractions.
The most represented nationalities are Americans and British in Rome, Northern Europeans in Milan, and a mix in Florence.
And if you are also an expat, you may want to read our exhaustive guide for expats in Italy.
Get fresh and reliable information about the market in Italy
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Who rents, and what do tenants want in Italy right now?
What tenant profiles dominate rentals in Italy?
The dominant tenant profiles in Italy are students (25-30% in university cities), young professionals (35-40%), and temporary renters on fixed-term contracts (20-25%).
Students seek furnished rooms near campus, young professionals want 1-bedroom apartments in connected neighborhoods, and families look for 2-3 bedrooms in quiet areas with good schools.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Italy.
Do tenants prefer furnished or unfurnished in Italy?
In major Italian cities, 55-60% of tenants prefer furnished apartments, driven by students and mobile workers on shorter contracts.
The furnished premium is €100 to €200 per month ($110-$215 USD), roughly 10-15% above unfurnished equivalents.
Furnished rentals appeal most to students, expats, relocating professionals, and anyone on transitory contracts under 18 months.
Which amenities increase rent the most in Italy?
The top rent-boosting amenities in Italy are elevator (+€50-100/month), air conditioning (+€30-70), balcony/terrace (+€40-80), high energy efficiency (+€30-60), and metro proximity (+€50-100).
In our property pack covering the real estate market in Italy, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Italy?
Top ROI renovations in Italy are: heating upgrade (€2,000-5,000, adds €30-60/month), bathroom refresh (€3,000-8,000, adds €40-80), kitchen update (€2,500-7,000, adds €30-70), insulation/windows (€4,000-10,000, adds €40-80), and AC installation (€1,000-2,500, adds €30-50).
Avoid luxury finishes in mid-range areas, swimming pools in urban apartments, and overly personalized designs that limit tenant appeal.
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.
How strong is rental demand in Italy as of 2026?
What's the vacancy rate for rentals in Italy as of 2026?
As of January 2026, Italy's estimated long-term rental vacancy rate is around 4% nationally, masking huge variation between cities.
Vacancy ranges from 1-3% in Milan, Florence, and central Rome to 6-8% in smaller southern towns.
Current vacancy is below the 5-6% historical average from 2015-2019, reflecting strong demand and limited supply in major cities.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Italy.
How many days do rentals stay listed in Italy as of 2026?
As of January 2026, rentals in Italy stay listed an average of 35 days, though well-priced properties in high-demand areas rent within 10-15 days.
Days on market range from 10-25 in central Milan and Florence to 50-70 in less competitive areas.
This figure has increased 4.5% year-over-year, suggesting slight easing from 2024's extreme landlord's market.
Which months have peak tenant demand in Italy?
Peak tenant demand in Italy runs July through October, when universities restart and post-summer job relocations spike.
Key drivers are the academic calendar (September/October start), August vacation shutdowns, and January hiring cycles creating a secondary wave.
Lowest demand months are November-January and mid-August, when holiday pauses reduce active searches.
Buying real estate in Italy 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 will my monthly costs be in Italy as of 2026?
What property taxes should landlords expect in Italy as of 2026?
As of January 2026, landlords pay IMU on rental properties, typically 0.8-1.1% of cadastral value annually, or roughly €500-2,000 ($540-$2,170 USD) for a typical apartment.
The range spans €300 in smaller towns to €3,000+ in prime Milan or Rome ($325-$3,250 USD).
IMU is calculated from cadastral value multiplied by a coefficient, then the municipal rate, so amounts vary by city.
Please note that, in our property pack covering the real estate market in Italy, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Italy right now?
A realistic annual maintenance budget in Italy is around 1% of property value, or €1,500-2,500 ($1,620-$2,700 USD) for a standard apartment.
Costs range from €800 for newer buildings to €4,000+ for older ones with elevators and deferred maintenance.
Italian landlords typically set aside 8-12% of annual rental income for maintenance and condominium contributions.
What utilities do landlords often pay in Italy right now?
Landlords in Italy commonly pay condominium expenses (€50-150/month) and sometimes internet (€25-40) in furnished rentals.
Standard practice is tenants pay individual electricity, gas, and water, while landlords cover building-level utilities.
How is rental income taxed in Italy as of 2026?
As of January 2026, rental income in Italy can be taxed at 21% flat (cedolare secca) for standard contracts or 10% for agreed-rent contracts.
Under cedolare secca no deductions are allowed; under IRPEF, landlords can deduct maintenance, mortgage interest, and depreciation.
A key Italy-specific mistake is choosing cedolare secca without realizing it forfeits annual ISTAT inflation-based rent increases.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Italy.
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 sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses in our property pack about Italy, we always rely on the strongest methodology and don't throw out numbers at random.
Below we've listed the authoritative sources we used, and explained how we used them.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Agenzia delle Entrate - OMI | Italy's official real estate observatory using administrative datasets. | We anchored official market views and cross-checked portal trends against OMI signals. |
| OMI Quotazioni | Government reference database for location-based rent ranges. | We sanity-checked high-price areas and supported neighborhood examples. |
| Rapporto Immobiliare 2025 | Official annual report from nationwide administrative archives. | We framed demand/supply context and triangulated against private portals. |
| OMI Quarterly Statistics | Official data on rental contract types across Italy. | We identified growth in student and transitory contracts. |
| ISTAT - FOI Index | Italy's official statistics agency; FOI is the legal reference for rent indexation. | We explained index-linked rent increases and inflation backdrop. |
| Banca d'Italia | Italy's central bank with methodical housing market snapshots. | We framed macro sentiment and used it as counterweight to portal data. |
| ECB - HICP Rentals | Central bank data hub for harmonized inflation components. | We cross-checked rent inflation in the official basket. |
| Immobiliare.it | One of Italy's biggest listing platforms with transparent indicators. | We anchored national asking rent per sqm and cross-checked against idealista. |
| Immobiliare.it Insights | Structured research with repeatable metrics. | We used bilocale rent anchors and time-to-rent direction. |
| idealista - Rent Index | Major portal with long-running index since 2012. | We used it as independent benchmark to triangulate national rent levels. |
| idealista - English Hub | Same dataset highlighting geographic dispersion. | We supported city-gap analysis and neighborhood comparisons. |
| MEF - IMU | Ministry of Finance's official IMU guidance. | We explained IMU application and kept cost section accurate. |
| MEF - TARI | Official portal for municipal TARI rules. | We explained TARI variation and guided readers to verify local rates. |
| Cedolare Secca | Official tax authority page for residential rental rates. | We stated rates and explained the ISTAT indexation trade-off. |
| Locazioni Brevi | Official short-term rental framework. | We separated long-term from short-stay rules. |
| ARERA - Electricity | National energy regulator's official tariff updates. | We grounded utility costs in regulator data. |
| ARERA - MTR-2 | Regulated framework for municipal waste costs. | We explained TARI structure as regulator backbone. |
| FRED - Italy HICP | Public data library republishing official series. | We triangulated inflation-style rent growth. |
| Reuters | High-standard wire service for policy changes. | We used it only for policy context affecting supply. |
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