Authored by the expert who managed and guided the team behind the France Property Pack
Yes, the analysis of Paris' property market is included in our pack
If you're thinking about buying rental property in Paris, you're probably wondering what return you can actually expect.
Paris is unique because rent controls limit how much you can charge, keeping yields lower than in many other global capitals.
We update this article regularly to reflect the latest data and market conditions.
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 Paris.
Insights
- Paris gross rental yields average around 3.2% in early 2026, notably lower than most European capitals due to strict rent control regulations capping what landlords can charge.
- Studios and small one-bedroom apartments typically deliver 0.4 to 1.0 percentage points higher gross yields than larger units because rent per square meter is structurally higher for compact spaces.
- The spread between high-yield and low-yield Paris neighborhoods can reach 2 percentage points, with La Chapelle in the 18th offering around 4% gross while Saint-Germain-des-Prés rarely exceeds 2.5%.
- Net yields drop to around 2.1% on average after factoring in property taxes, building charges, and the typical 3% vacancy buffer.
- Water costs in Paris stand at exactly 4.23 euros per cubic meter as of January 2026, a concrete number for calculating "utilities included" setups.
- The Chapelle International redevelopment in the 18th arrondissement is now delivering transformed neighborhood infrastructure, supporting rent resilience in surrounding micro-areas.
- Paris property management fees typically range from 5% to 10% of collected rent, significantly impacting net yield for hands-off investors.
- Older Paris buildings face hidden renovation risks because energy performance rules now ban renting out the worst-rated units, potentially forcing unexpected capital expenditures.
What are the rental yields in Paris as of 2026?
What's the average gross rental yield in Paris as of 2026?
As of early 2026, the average gross rental yield for residential property in Paris sits at approximately 3.2%, reflecting how expensive it is to buy compared to what landlords can charge.
Most typical residential properties fall within a gross yield range of 2.4% to 4.2%, depending on neighborhood and property size.
Compared to other major French cities or European capitals, Paris yields are on the lower end because purchase prices are exceptionally high while rents remain constrained by rent cap regulations.
The single most important factor shaping gross rental yields in Paris is the rent control system, which legally limits what landlords can charge and prevents rents from rising in line with property values.
What's the average net rental yield in Paris as of 2026?
As of early 2026, the average net rental yield in Paris comes in at around 2.1%, accounting for the stack of recurring costs landlords face.
The typical gap between gross and net yields in Paris is about 1.0 to 1.2 percentage points, representing all expenses that eat into rental income.
Property tax (taxe foncière) is the biggest recurring expense reducing gross yield to net yield in Paris, with the city's voted rate for built properties at 20.50% of the tax base.
Most standard investment properties deliver net yields of 1.4% to 3.0%, with variation driven by building charges, management costs, and pricing relative to rent cap ceilings.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Paris.
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 Paris in 2026?
A gross rental yield of 3.8% or higher is generally considered "good" by local investors in Paris, placing you in the top quartile of what the market offers given rent controls and high prices.
The threshold separating average from high-performing properties is roughly 3.5% gross yield, and anything above 4% typically means you've found a cheaper micro-area with solid demand or a small unit with higher rent per square meter.
How much do yields vary by neighborhood in Paris as of 2026?
As of early 2026, the spread in gross rental yields between highest and lowest-yield neighborhoods can reach 2.0 to 2.5 percentage points.
Neighborhoods delivering the highest yields are outer arrondissement areas with strong transport links, such as La Chapelle and Marx Dormoy in the 18th, Jourdain and Télégraphe in the 19th and 20th, or Tolbiac and Olympiades in the 13th.
The lowest-yield neighborhoods are prestigious central areas where prices are extremely high but rents cannot follow, including Saint-Germain-des-Prés in the 6th, Invalides in the 7th, Trocadéro in the 16th, and the Triangle d'Or in the 8th.
Yields vary because property prices move faster than rents across neighborhoods, and rent caps prevent landlords in expensive zones from charging proportionally higher rents.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Paris.
How much do yields vary by property type in Paris as of 2026?
As of early 2026, gross rental yields across property types range from about 2.5% for large family apartments up to 4.5% for well-located studios, with variation driven more by unit size than building type.
Studios and small one-bedroom apartments deliver the highest average gross yields because they command higher rent per square meter and attract students and young professionals.
Large family units deliver the lowest gross yields because prices per square meter remain very high, but rents don't scale up proportionally.
Yields differ because rental demand concentrates in smaller, affordable units, so compact apartment landlords benefit from stronger rent-per-square-meter dynamics while large unit owners face a ceiling on what tenants can pay.
By the way, you might want to read the following:
What's the typical vacancy rate in Paris as of 2026?
As of early 2026, the letting vacancy rate Paris landlords experience typically translates to 2% to 5% of annual rent, or roughly one to three weeks empty per year.
Vacancy rates vary across neighborhoods, with well-connected central areas like the 10th and 11th seeing almost no downtime, while outer areas or aggressively priced units may experience longer gaps.
The main factor driving Paris vacancy rates is the structural tightness of the rental market under rent control, which keeps tenant demand high while limiting supply.
Compared to national averages, Paris letting vacancy is quite low because demand far exceeds supply, even though official stock vacancy statistics show higher figures for the broader agglomeration.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Paris.
What's the rent-to-price ratio in Paris as of 2026?
As of early 2026, the average rent-to-price ratio in Paris is approximately 0.27% per month, meaning for every 100,000 euros spent, expect around 270 euros in monthly rent.
A ratio of around 0.30% per month or higher is considered favorable for buy-to-let investors, and multiplying this by 12 gives you the annual gross yield percentage.
Compared to other major European capitals, Paris has a relatively low rent-to-price ratio because property prices are among the highest while rent growth is constrained, positioning Paris as a stability market rather than high cashflow.
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 Paris give the best yields as of 2026?
Where are the highest-yield areas in Paris as of 2026?
As of early 2026, the top highest-yield neighborhoods are La Chapelle and Marx Dormoy in the 18th, the Jourdain and Télégraphe areas in the 19th and 20th, and Tolbiac and Olympiades in the 13th.
In these areas, investors can expect gross yields of 3.6% to 4.5%, significantly above the Paris average.
These high-yield neighborhoods share lower purchase prices per square meter while benefiting from strong metro connectivity and steady demand from students, young professionals, and price-sensitive tenants.
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 Paris.
Where are the lowest-yield areas in Paris as of 2026?
As of early 2026, the lowest-yield neighborhoods are Saint-Germain-des-Prés in the 6th, Invalides and Champ-de-Mars in the 7th, and Trocadéro, Passy, and Auteuil in the 16th.
In these prestigious areas, gross yields typically fall between 2.0% and 2.8%, reflecting the massive price premium buyers pay.
Yields are compressed here because property prices are extraordinarily high due to prestige, but rent caps prevent landlords from charging rents that compensate for elevated purchase costs.
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 Paris.
Which areas have the lowest vacancy in Paris as of 2026?
As of early 2026, neighborhoods with the lowest vacancy rates are the Latin Quarter in the 5th, République and Oberkampf in the 11th, and Canal Saint-Martin in the 10th.
In these areas, landlords experience vacancy rates well under 2% of annual rent, often finding new tenants within days.
The main demand driver is the combination of excellent metro access, vibrant amenities, and strong appeal to young professionals and students needing central locations.
The trade-off is higher purchase prices, which compress gross yields, meaning you sacrifice cashflow returns for near-guaranteed occupancy.
Which areas have the most renter demand in Paris right now?
The neighborhoods with strongest renter demand are République and Canal Saint-Martin in the 10th and 11th, South Pigalle and Saint-Georges in the 9th, and Bibliothèque and Tolbiac in the 13th.
Demand is driven by young professionals aged 25 to 40 prioritizing metro access and lively neighborhoods, along with students seeking affordable central rents.
Listings in these high-demand areas typically get filled within one to two weeks, with well-priced units near metro stations receiving multiple applications in days.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Paris.
Which upcoming projects could boost rents and rental yields in Paris as of 2026?
As of early 2026, the top projects expected to boost rents are the Chapelle International redevelopment in the 18th, the Charenton-Bercy transformation adjacent to the 12th, and Grand Paris Express metro extensions.
Neighborhoods most likely to benefit include Porte de la Chapelle and Marx Dormoy in the 18th, Porte de Bercy and Bercy in the 12th, and outer arrondissement zones near new metro stations.
Investors might realistically expect rent increases of 3% to 8% over coming years in directly impacted areas, though rent caps will limit how quickly landlords capture this upside.
You'll find our latest property market analysis about Paris here.
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What property type should I buy for renting in Paris as of 2026?
Between studios and larger units in Paris, which performs best in 2026?
As of early 2026, studios and small one-bedroom apartments perform best for yield and occupancy, though they come with higher turnover and more regulatory scrutiny under rent control.
Studios typically achieve gross yields of 3.5% to 4.5% (roughly 700 to 1,200 euros monthly, or $760 to $1,300), while larger two or three-bedroom units often yield only 2.5% to 3.5%.
Studios outperform because rent per square meter is structurally higher for smaller spaces in constant demand from students, young workers, and singles prioritizing location.
Larger units become the better choice when targeting stable family tenants near good schools in the 12th or 14th, where longer leases and lower turnover offset the yield gap.
What property types are in most demand in Paris as of 2026?
As of early 2026, the most in-demand property type is the studio or two-room apartment near a metro station, attracting the largest pool of prospective tenants.
Top property types by demand are studios and two-room apartments near metro nodes in the 10th, 11th, and 12th, followed by compact two-bedroom family flats near schools, then modern apartments with balconies.
This demand is driven by young professionals, students, and small households needing affordable, well-connected housing where space is expensive and commute time matters.
Large four or five-bedroom apartments without outdoor space are underperforming and likely to remain so, appealing to a narrow segment and sitting longer on the market.
What unit size has the best yield per m² in Paris as of 2026?
As of early 2026, units of roughly 15 to 30 square meters deliver the best gross rental yield per square meter, corresponding to studios and compact one-bedrooms.
For this optimal size, typical gross yield per square meter works out to 35 to 45 euros monthly rent relative to 10,000 to 12,000 euros purchase cost per square meter (about $38 to $49 / 36 to 46 euros).
Smaller or larger units have lower yields per square meter because very small studios hit rent caps easily while large apartments see rent per square meter drop as tenants won't pay proportionally more for extra space.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Paris.
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 Paris as of 2026?
What are typical property taxes and recurring local fees in Paris as of 2026?
As of early 2026, annual property tax (taxe foncière) for a typical rental apartment runs between 800 and 2,000 euros ($870 to $2,180), depending on size and assessed value.
Other recurring fees include building common charges (charges de copropriété), ranging from 1,500 to 4,000 euros annually ($1,630 to $4,360), though partly recoverable from tenants.
Property taxes and fees typically represent 15% to 25% of gross rental income, explaining the significant 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 Paris.
What insurance, maintenance, and annual repair costs should landlords budget in Paris right now?
Annual landlord insurance (assurance PNO) for a typical rental costs 150 to 400 euros ($165 to $435), depending on property size and coverage.
Landlords should budget 0.5% to 1.0% of property value annually for maintenance and repairs, roughly 1,500 to 4,000 euros ($1,630 to $4,360) for a typical apartment.
The expense most catching Paris landlords off guard is energy-related renovation, since older buildings may need costly upgrades and DPE G-rated properties are now banned from rental.
Total combined annual cost for insurance, maintenance, and repairs falls between 2,000 and 4,500 euros ($2,180 to $4,900), with higher reserves for pre-1946 buildings.
Which utilities do landlords typically pay, and what do they cost in Paris right now?
In Paris long-term rentals, landlords typically don't pay tenant utilities unless the lease is furnished with an "all-inclusive" setup or separate metering is impractical.
When landlords cover utilities (common in furnished rentals), monthly costs run 80 to 150 euros ($87 to $165), with water at 4.23 euros per cubic meter as of January 2026 and electricity following regulated EDF rates.
What does full-service property management cost, including leasing, in Paris as of 2026?
As of early 2026, monthly property management fees for full-service management range from 5% to 10% of collected rent (roughly 50 to 150 euros, or $55 to $165, for a standard apartment).
Leasing or tenant-placement fees on top of ongoing management typically amount to one month's rent, adding 800 to 1,500 euros ($870 to $1,630) each time you need a new tenant.
What's a realistic vacancy buffer in Paris as of 2026?
As of early 2026, Paris landlords should set aside about 3% of annual rental income as a vacancy buffer for time between tenants, minor refresh, and administrative gaps.
Typical vacant weeks per year are one to three, though this can stretch longer when pricing aggressively near rent caps or when units need work between tenancies.
Buying real estate in Paris 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 Paris, 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 - Indice de Référence des Loyers | France's official statistics agency, with IRL as the legal benchmark for rent updates. | We used IRL to anchor how rents evolve in France. We used it as a reality-check for our rent assumptions. |
| OLAP | The reference observatory for private rents in Paris with methodology recognized by official bodies. | We used OLAP to ground typical rent levels across Paris. We used its methodology to justify median and range approaches. |
| OLL rent observatory network | Official portal presenting local rent observatory results with downloadable data. | We used it to triangulate rent-per-square-meter figures. We used published medians to keep estimates consistent. |
| Prefecture rent cap decree | The legal document setting reference rents that constrain leases in Paris. | We used it to bound realistic market rents. We used it to explain why Paris yields are structurally capped. |
| City of Paris rent cap explainer | Official city guidance on how rent control applies in practice. | We used it to translate regulations into investor implications. We used it as the reader-friendly companion to the decree. |
| Paris Open Data - Rent caps | City of Paris dataset with neighborhood-level rent control parameters. | We used it for neighborhood examples and micro-variation. We used it to justify talking in ranges rather than single figures. |
| Notaires de Paris | The closest to official transaction pricing based on recorded sales. | We used it to anchor purchase prices per square meter. We used it as the denominator for yield calculations. |
| Immobilier.notaires.fr | Notarial ecosystem built on transaction records rather than asking prices. | We used it as a cross-check for Paris price levels. We used it to avoid relying on listing portals. |
| APUR - Rent control impact | Paris urban planning agency with data-heavy evaluation. | We used it to explain why Paris yields behave differently. We used it to support regulation risk discussions. |
| DRIEAT - Vacant housing | Government regional directorate with administrative and statistical backing. | We used it to frame vacancy patterns. We used it to triangulate realistic vacancy buffers. |
| SDES - Vacancy statistics | Central government statistical service official publication. | We used it to anchor vacancy rates for context. We used it to keep assumptions conservative and evidence-linked. |
| City of Paris tax deliberation | Official council deliberation stating voted property tax rates. | We used it to quantify property tax impact on net yield. We used exact voted rates as our starting point. |
| FNAIM | Main French real estate federation with credible sector fee references. | We used it for property management cost expectations. We used it to justify typical percentage ranges. |
| EDF Tarif Bleu | Incumbent electricity supplier's official regulated tariff page. | We used it to anchor electricity cost assumptions. We used it as sanity check against third-party summaries. |
| Eau de Paris | Official municipal water operator with explicit January 2026 pricing. | We used it to quantify water costs. We used it for concrete, Paris-specific numbers. |
| Ministry of Ecological Transition | Official government statement on energy performance rental restrictions. | We used it to explain renovation and CapEx risks. We used it to justify higher maintenance assumptions. |
| Grand Paris Express | Official project site for the region's largest transport infrastructure build. | We used it to identify areas benefiting from new connectivity. We used it to keep project timing realistic. |
| City of Paris - Chapelle International | Official city page on the major 18th arrondissement redevelopment. | We used it to support micro-area catalyst discussions. We used it to explain neighborhood transformation effects. |
| Grand Paris Aménagement | Official project page for transformation adjacent to Paris. | We used it to identify spillover effects on the 12th. We used it for concrete infrastructure catalyst examples. |
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