Vacation Rental ROI in Puerto Escondido 2026: Real Numbers, Not Promises

If a seller promises you "guaranteed double-digit net," grab your wallet and walk. Vacation rental in Puerto Escondido is a good business, one of the best on the Mexican coast right now. But it's a business with costs, low seasons, and growing competition, and anyone who paints it for you without those three things is selling you smoke. Here are the numbers the way we handle them, with public sources and a complete calculation that includes what almost no one includes.

Why demand is growing

Three things happened in a short time. The Barranca Larga–Ventanilla superhighway put the city of Oaxaca about two and a half hours away, and that opened up domestic weekend tourism. The direct flight from Houston has been running since 2025, with more routes from the United States and Canada on the horizon and the airport runway being expanded. And state tourism is coming on strong: Oaxaca's tourism revenue grew more than 35% between 2021 and 2024 according to DATATUR, with the coast pulling the cart. Meanwhile, the national price of housing is rising around 8 to 9% a year according to INEGI and rating-agency projections for 2026. That's the tailwind.

The operating numbers

In high season, from December to April, well-located and well-managed properties regularly exceed 80% occupancy, with higher peaks when the international surf season arrives. Note: that's high season. For the full year, we budget between 55 and 65% for an average unit, and we prefer to come in low. Rates tell another part of the story: a one-bedroom unit near the beach that charged about 80 dollars a night in 2021 now goes above 140. All together, one- and two-bedroom units in high-demand areas like La Punta and Carrizalillo report between 8 and 14% gross a year. Net, after all costs, the realistic range is 5 to 9%.

The calculation they don't show you

Let's take a typical case: a one-bedroom unit, 180,000 dollars, high-demand area. With an annual average rate of 95 dollars and 60% occupancy, about 20,800 dollars gross come in per year. Sounds like 11.5%. Now let's subtract. Professional management, between 20 and 25%: about 4,700 dollars, and in this market it's no longer optional if you want to sustain occupancy. Cleaning, supplies, and maintenance: about 2,000 plus replacements. Electricity, water, fiber internet (the amenity that decides bookings from remote workers), and property tax: around 1,300. And if you bought with a fideicomiso, the bank's annual fee, about 600; the details of that arrangement are in the fideicomiso guide.

That leaves close to 12,200 dollars net: 6.8% a year. Within the range the market reports, above more saturated destinations, and without counting the property's appreciation, which on this coast has been running above the national average. Is it the 14% the brochure promises? No. Is it a good business with the asset appreciating underneath? Yes.

What separates the properties that perform from the ones that don't

Three things, in our experience managing and selling in the area. The first: the right product in the right area; not every location holds up for short-term rental, and the full comparison is in our areas to invest article. The second: character. Properties with contemporary Mexican design and good outdoor spaces charge more and fill up more than the usual generic box. And the third, the least glamorous: impeccable paperwork. Without a deed there's no fideicomiso, no financing for your future buyer, and no clean exit. The 2026 buyer asks for documents before renders, and rightly so.

Want to run these numbers on a specific property? Write to us and we'll build the projection with you, with the assumptions in plain view so you can question them.

Frequently asked questions

What net yield is realistic?

Between 5 and 9% a year on well-located and well-managed units, plus appreciation. Promises of guaranteed double-digit net don't survive a calculation with full costs.

Short-term or long-term rental?

Short-term in high-demand tourist areas, long-term in residential areas like Rinconada, where lower turnover offsets the lower rate.

Do I pay taxes in Mexico for renting?

Yes. Renting generates ISR and IVA depending on your tax regime, and the platforms withhold. A local accountant from day one protects your yield by more than it costs.