Authored by the expert who managed and guided the team behind the Italy Property Pack
Yes, the analysis of Milan's property market is included in our pack
If you are considering buying an apartment in Milan as a foreign investor, understanding rental yields is essential before you commit.
This guide breaks down what gross and net yields you can realistically expect, which neighborhoods perform best, and what costs will affect your bottom line.
We update this article regularly to keep the numbers fresh and accurate.
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 Milan.
What rental yields can I realistically get from an apartment in Milan?
What's the average gross rental yield for apartments in Milan as of 2026?
As of early 2026, the average gross rental yield for apartments in Milan sits at around 5.0%, which is a solid benchmark for most residential investors entering the market.
That said, the realistic range for gross yields in Milan spans from about 4.3% to 5.8%, depending on where you buy and what type of apartment you choose.
The main factor that causes Milan gross yields to vary so much is the gap between purchase prices and rents in different zones: prime areas like Centro Storico see prices rise faster than rents, which compresses yields, while neighborhoods like Bicocca or Città Studi offer more moderate entry prices with strong tenant demand from universities and young professionals.
Compared to other major Italian cities, Milan's gross yields are fairly middle-of-the-road: cities like Turin or Bologna sometimes offer slightly higher yields because their purchase prices are lower, but Milan compensates with stronger rent stability and a deeper tenant pool.
What's the average net rental yield for apartments in Milan as of 2026?
As of early 2026, the average net rental yield for apartments in Milan before income tax is approximately 3.6%, which is what remains after deducting the main recurring costs landlords face.
Most apartment investors in Milan can realistically expect net yields between 3.0% and 4.2%, with the lower end typical in buildings with concierge services and central heating, and the higher end in simpler, more efficient buildings.
The single biggest expense that reduces gross yield to net yield in Milan is the condominium charge (spese condominiali), which averages around 160 euros per month citywide and includes items like building maintenance, elevator servicing, and heating in older buildings with centralized systems.
By the way, you will find much more detailed data in our property pack covering the real estate market in Milan.
What's the typical rent-to-price ratio for apartments in Milan in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Milan is about 0.42% per month, which translates to roughly 5.0% when annualized.
The realistic range for rent-to-price ratios in Milan spans from about 0.35% per month in expensive central areas to around 0.50% per month in more affordable neighborhoods with good transit links.
Apartments in neighborhoods like Bicocca, parts of Lambrate, and certain areas in the northeast of Milan tend to have the highest rent-to-price ratios because purchase prices there have not climbed as fast as in trendy zones, while rental demand from university students and young workers remains consistently strong.
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How much rent can I charge for an apartment in Milan?
What's the typical tenant budget range for apartments in Milan right now?
In Milan in early 2026, the typical monthly tenant budget for a standard apartment ranges from around 900 euros to 2,300 euros (about 940 to 2,400 USD or 870 to 2,200 EUR at current rates), covering everything from compact studios to family-sized two-bedroom units.
Tenants targeting mid-range apartments in Milan generally budget between 1,200 and 1,800 euros per month (roughly 1,250 to 1,880 USD or 1,200 to 1,800 EUR), which gets you a decent one-bedroom or smaller two-bedroom in a well-connected neighborhood like Città Studi or Porta Romana.
For high-end or luxury apartments in Milan, tenant budgets typically start at 2,500 euros and can exceed 4,000 euros per month (about 2,600 to 4,200 USD or 2,500 to 4,000 EUR), especially for furnished units in prime areas like Brera, Porta Nuova, or the Quadrilatero della Moda.
We have a blog article where we update the latest data about rents in Milan here.
What's the average monthly rent for a 1-bed apartment in Milan as of 2026?
As of early 2026, the average monthly rent for a 1-bed apartment in Milan is approximately 1,250 euros (about 1,300 USD or 1,250 EUR), based on typical unit sizes of 50 to 55 square meters and current market rates.
For an entry-level 1-bed in Milan, expect to pay between 900 and 1,100 euros per month (around 940 to 1,150 USD or 900 to 1,100 EUR), which typically gets you a basic unit in an older building in areas like Corvetto, Bisceglie, or the outer reaches of the M2 green metro line.
A mid-range 1-bed in Milan rents for about 1,150 to 1,400 euros per month (roughly 1,200 to 1,460 USD or 1,150 to 1,400 EUR), and at this price you can find a well-maintained apartment with an elevator in neighborhoods like Città Studi, Lambrate, or the Navigli area slightly away from the canals.
High-end 1-bed apartments in Milan command 1,500 to 2,000 euros per month or more (about 1,570 to 2,090 USD or 1,500 to 2,000 EUR), typically featuring modern finishes, air conditioning, and prime locations near Porta Nuova, Brera, or the fashion district.
What's the average monthly rent for a 2-bed apartment in Milan as of 2026?
As of early 2026, the average monthly rent for a 2-bed apartment in Milan is around 1,850 euros (approximately 1,930 USD or 1,850 EUR), calculated using typical unit sizes of 75 to 85 square meters.
An entry-level 2-bed in Milan costs between 1,400 and 1,650 euros per month (roughly 1,460 to 1,720 USD or 1,400 to 1,650 EUR), and these are usually found in buildings from the 1960s or 1970s in peripheral but metro-accessible areas like Affori, Precotto, or San Donato.
A mid-range 2-bed in Milan rents for about 1,700 to 2,100 euros per month (around 1,780 to 2,200 USD or 1,700 to 2,100 EUR), offering you a renovated apartment with good natural light in popular residential neighborhoods like Isola, Porta Romana, or the quieter parts of Navigli.
Luxury 2-bed apartments in Milan start at 2,300 euros and can reach 3,500 euros per month or more (about 2,400 to 3,660 USD or 2,300 to 3,500 EUR), featuring high-end finishes, terraces, and locations in prestigious areas like Brera, Magenta, or the new developments around Porta Nuova.
What's the average monthly rent for a 3-bed apartment in Milan as of 2026?
As of early 2026, the average monthly rent for a 3-bed apartment in Milan is approximately 2,500 euros (about 2,610 USD or 2,500 EUR), based on typical sizes of 100 to 110 square meters and current asking rates.
An entry-level 3-bed in Milan rents for between 2,000 and 2,300 euros per month (around 2,090 to 2,400 USD or 2,000 to 2,300 EUR), and at this price you are looking at older buildings in neighborhoods like Baggio, Quarto Oggiaro, or the outer zones along the M3 yellow line.
A mid-range 3-bed in Milan costs about 2,400 to 2,900 euros per month (roughly 2,510 to 3,030 USD or 2,400 to 2,900 EUR), getting you a well-maintained family apartment in established residential areas like Città Studi, Wagner, or the southern part of Porta Romana.
High-end 3-bed apartments in Milan command 3,200 to 4,500 euros per month or more (about 3,350 to 4,700 USD or 3,200 to 4,500 EUR), typically featuring large living spaces, modern kitchens, and sought-after addresses in Centro Storico, Brera, or the Sempione park area.
How fast do well-priced apartments get rented in Milan?
In Milan in early 2026, a well-priced apartment typically gets rented within one to two weeks for studios and one-beds near metro stations, and within two to five weeks for larger family apartments.
The typical vacancy rate for apartments in Milan is relatively low at around 2% to 4% annually for well-located properties, reflecting the city's strong and sustained rental demand from professionals, students, and international workers.
The main factors that make some Milan apartments rent faster than others include proximity to metro stations (especially the M2 green and M1 red lines), being furnished and move-in ready for the large expat and student market, and having efficient layouts without wasted corridor space that Milan renters have learned to avoid.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost in Milan.
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.
Which apartment type gives the best yield in Milan?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Milan as of 2026?
As of early 2026, studios and 1-bed apartments typically offer the best rental yields in Milan, followed by 2-beds, with 3-beds generally producing the lowest gross yields.
In terms of typical gross yield ranges, studios in Milan can achieve 5.5% to 6.5%, 1-beds around 5.0% to 5.8%, 2-beds about 4.5% to 5.3%, and 3-beds usually fall between 4.0% and 4.8%.
The main reason smaller units outperform in Milan is that the city's renter base skews heavily toward young professionals, university students, and international relocations who need compact, efficient housing near transit and employment centers, which keeps demand and rent per square meter highest for smaller apartments.
Which features are best if you want a good yield for your apartment in Milan?
The features that most positively impact rental yields for apartments in Milan include walking distance to a metro station (especially M2 or M1 lines), energy-efficient heating systems that keep tenant utility costs low, and being furnished with modern appliances for the large expat and student market.
In Milan, upper floors (third floor and above) with an elevator tend to rent faster and command slightly higher rents because they offer better natural light, less street noise, and views, while ground-floor units can be harder to rent unless they have a private garden or courtyard access.
Apartments with balconies or small terraces do rent faster in Milan and can command a 5% to 10% rent premium, as outdoor space is relatively scarce in the city's dense building stock and became especially valued after the pandemic.
Building features like elevators, concierge (portineria), and parking do raise achievable rents in Milan, but investors should be careful because concierge services and central heating systems also drive up condominium charges significantly, which can offset the rent premium and reduce net yield.
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Which neighborhoods give the best rental demand for apartments in Milan?
Which neighborhoods have the highest rental demand for apartments in Milan as of 2026?
As of early 2026, the Milan neighborhoods with the highest rental demand include Porta Nuova and Isola (for international professionals), Brera and Moscova (for premium tenants and corporate lets), Navigli and Porta Genova (for young professionals), the Bocconi and Porta Romana corridor (for students and academics), and Città Studi and Bicocca (for university-driven demand).
The main demand driver in these Milan neighborhoods is the combination of excellent public transport links, proximity to major employers (finance, fashion, tech), and access to universities like Bocconi, Politecnico, and Bicocca, which together create a deep and diverse tenant pool that keeps vacancy risk low.
In these high-demand Milan neighborhoods, well-priced apartments typically rent within one to two weeks, and annual vacancy rates often stay below 2% to 3% because tenant turnover is quickly absorbed by the next wave of relocating professionals or students.
One emerging neighborhood gaining rental demand momentum in Milan is the Santa Giulia area in the southeast, which is benefiting from new infrastructure including the extension of the M4 metro line and development linked to the upcoming 2026 Winter Olympics venues.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Milan.
Which neighborhoods have the highest yields for apartments in Milan as of 2026?
As of early 2026, the Milan neighborhoods with the highest rental yields include Bicocca, parts of Lambrate, and certain value pockets in the northeast and south of the city where purchase prices remain more moderate relative to rents.
In these top-yielding Milan neighborhoods, gross rental yields typically range from 5.0% to 6.0% or slightly higher, compared to just 3.0% to 4.0% in prime central areas like Centro Storico or Brera.
The main reason these neighborhoods offer higher yields is that their purchase prices have not spiked as dramatically as in "brand name" areas, while rental demand remains robust thanks to nearby universities (Bicocca, Politecnico), good metro access, and a growing population of young professionals who prioritize value over prestige.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Italy. 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.
Should I do long-term rental or short-term rental in Milan?
Is short-term rental legal for apartments in Milan as of 2026?
As of early 2026, short-term rentals are legal for apartments in Milan, but they come with significant compliance requirements that make professional help advisable for foreign owners.
The main legal requirements for operating a short-term rental apartment in Milan include obtaining a national identification code (CIN) through the tourism ministry's registry, reporting all guests to the police within 24 hours of arrival, collecting and remitting the city tourist tax, and meeting safety standards for the property.
For Airbnb-style rentals in Milan, you must register your property on the national BDSR platform managed by the Ministero del Turismo, display your CIN code on all listings, and comply with regional Lombardy regulations that may require additional certifications depending on how you structure your rental activity.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Milan.
What's the gross yield difference short-term vs long-term in Milan in 2026?
As of early 2026, short-term rentals in Milan can generate gross revenue roughly 1.5 to 2 times higher than long-term rentals, but the net yield difference is much smaller once you account for the additional operating costs.
In Milan, long-term rentals typically produce gross yields around 5.0%, while short-term rentals can reach 7% to 10% in gross revenue terms, though this varies significantly by location and seasonality.
The main additional costs that reduce the net yield advantage of short-term rentals in Milan include platform fees (typically 3% to 15%), professional cleaning and linen services between guests, higher utility bills paid by the owner, accelerated furniture and fixture wear, and professional management fees that often run 20% to 30% of revenue.
For a short-term rental to clearly outperform a long-term rental in Milan, you generally need to maintain an occupancy rate of at least 65% to 70% annually, which requires competitive pricing, strong reviews, and a property in a location attractive to tourists and business travelers.
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What costs will eat into my net yield for an apartment in Milan?
What are building service charges as a % of rent in Milan as of 2026?
As of early 2026, the typical building service charge (spese condominiali) for apartments in Milan averages around 160 euros per month (about 165 USD or 160 EUR), which translates to roughly 10% to 15% of monthly rent for a mid-range apartment, though tenants reimburse a significant portion of these costs.
The realistic range of building service charges in Milan spans from about 80 euros per month in simple buildings without elevators or concierge to over 300 euros per month (roughly 85 to 315 USD or 80 to 300 EUR) in full-service buildings with portineria, central heating, and extensive common areas.
In Milan, the services and building features that justify higher-than-average condominium charges include centralized heating systems (riscaldamento centralizzato), which are common in older buildings and can drive costs up significantly, as well as 24-hour concierge service, maintained gardens, and shared amenities like gyms or pools in newer developments.
What annual maintenance budget should I assume for an apartment in Milan right now?
For an apartment in Milan, a prudent annual maintenance budget is around 0.7% of the property value, which translates to roughly 2,500 to 4,000 euros per year (about 2,600 to 4,200 USD or 2,500 to 4,000 EUR) for a typical investment apartment.
The realistic range of annual maintenance costs in Milan varies from about 1,500 euros for newer buildings in good condition to 6,000 euros or more (roughly 1,570 to 6,300 USD or 1,500 to 6,000 EUR) for older buildings with aging systems or pending extraordinary works.
The most common maintenance expenses apartment owners face annually in Milan include contributions to building facade restorations (which the city periodically requires), elevator modernization assessments, boiler and heating system repairs in buildings with central heating, and roof or courtyard maintenance in the older palazzi that make up much of the housing stock.
What property taxes should I expect for an apartment in Milan as of 2026?
As of early 2026, the main property tax for a rental apartment in Milan is IMU, which is charged at a rate of 1.04% for standard rental contracts (canone libero) or 0.73% for regulated-rent contracts (canone concordato), applied to the cadastral-based taxable value rather than the market price.
The realistic range of annual IMU for a typical investment apartment in Milan runs from about 800 to 2,500 euros per year (roughly 835 to 2,610 USD or 800 to 2,500 EUR), depending on the property's cadastral value (rendita catastale) and the type of rental contract you use.
IMU in Milan is calculated by taking the property's rendita catastale, increasing it by 5%, multiplying by a coefficient (160 for residential property), and then applying the relevant municipal rate, which means the actual tax depends heavily on the cadastral value rather than what you paid for the apartment.
There are property tax reductions available in Milan: if you rent your apartment under a canone concordato (regulated rent) contract, you benefit from a reduced IMU rate of 0.73% instead of 1.04%, and you may also qualify for a lower flat tax rate of 10% instead of 21% on your rental income through the cedolare secca regime.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Milan.
How much does landlord insurance cost for an apartment in Milan in 2026?
As of early 2026, the typical annual landlord insurance cost for an apartment in Milan ranges from 150 to 350 euros (about 155 to 365 USD or 150 to 350 EUR) for a standard policy covering building damage, third-party liability, and basic tenant-related risks.
The realistic range of annual landlord insurance costs in Milan spans from around 100 euros for basic coverage on a smaller apartment to 500 euros or more (roughly 105 to 525 USD or 100 to 500 EUR) if you add theft coverage, natural catastrophe protection, or higher insured values for a premium property.
What's the typical property management fee for apartments in Milan as of 2026?
As of early 2026, the typical property management fee for long-term rental apartments in Milan is around 8% to 10% of collected monthly rent, which for a 1,500 euro per month apartment translates to roughly 120 to 150 euros per month (about 125 to 155 USD or 120 to 150 EUR).
The realistic range of property management fees in Milan spans from about 6% for basic rent collection and lease administration to 15% or more (in absolute terms, roughly 90 to 225 euros per month or 95 to 235 USD) for full-service management including tenant sourcing, maintenance coordination, and legal support.
Standard property management services in Milan typically include tenant finding and screening, lease preparation and registration, monthly rent collection and reporting, coordination of routine maintenance, and handling tenant communications, though the exact scope varies by provider and should be confirmed before signing.
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 included in our property pack about Milan, 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 |
|---|---|---|
| Idealista | One of Italy's largest property portals with methodology-backed price indices. | We extracted sale asking prices per square meter for Milan and by zone. We used these as the denominator in gross yield calculations. |
| Immobiliare.it Insights | Italy's largest property marketplace with widely cited market analytics. | We cross-checked Milan rent and sale figures against Idealista. We used their demand commentary to support time-to-rent estimates. |
| Italian Ministry of Finance (MEF) | Official national portal for municipal IMU property tax rates. | We sourced Milan's official IMU rates for rental properties. We used these to calculate annual property tax costs. |
| Comune di Milano | The city's own taxpayer guidance document for IMU. | We used it to explain how IMU works for beginners. We kept the tax explanation accessible and practical. |
| Unipol-Ipsos Research | Published research from a major Italian insurance group with Ipsos. | We anchored our Milan condominium cost estimates on their headline figure. We translated this into owner-cost impact on net yield. |
| Confedilizia Table (Agenzia delle Entrate) | Hosted by Italy's tax agency and widely used as a reference framework. | We used it to explain which building costs are paid by tenant versus owner. We justified why service charges don't fully hit landlord yield. |
| Milano Abitare | City-supported housing portal explaining regulated-rent contracts. | We described how canone concordato contracts reduce taxes. We showed this as a key Milan-specific yield optimization lever. |
| IVASS | Italy's official insurance regulator with annual statistical publications. | We used it as context for the regulated insurance market. We kept insurance cost assumptions grounded in official data. |
| AirDNA | Widely used analytics provider for short-term rental data. | We used AirDNA as the benchmark for short-term rental economics. We built conservative STR yield estimates versus long-term rent. |
| Ministero del Turismo (BDSR) | Official national tourism ministry platform for STR registration. | We explained the core compliance concept for short-term rentals. We framed STR legality in Milan as possible but compliance-heavy. |
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