At about 39% occupancy, a standard two-bedroom condo in Las Terrenas earns the same on Airbnb as it would on a year-long lease. The Evalúa market model puts the town's base-case short-term occupancy at roughly 45–47%, and the conservative case at about 35%. That leaves short-term renting with a margin of six to eight percentage points in a normal year, and puts it behind a lease in a weak one.
That margin is the whole investment decision, and agency brochures rarely show it. Below we build both strategies line by line on one $250,000 condo, find the exact occupancy where they cross, and show which costs push that line up or down.
Where Does Airbnb Stop Beating a Long-Term Lease in Las Terrenas?
On a $250,000 two-bedroom condo, Airbnb beats a $1,100-a-month long-term lease only above about 39% annual occupancy, using 2026 costs and pre-tax figures. If you can get $1,300 a month from a tenant, break-even rises to about 46%. That matches the town's base-case occupancy, so at that rent the lease is the better bet once you count the extra work of short-term renting.
The break-even is not one fixed number. It moves with three inputs: the rent a tenant will pay, the average nightly rate you can hold, and your management contract. The rest of this article shows how far each one moves it.
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What Assumptions Sit Behind the Two Scenarios?
Both scenarios use the same unit: a resale two-bedroom of about 110 m² (roughly 1,200 sq ft) in the town core, priced at $250,000. At our measured median of $2,225/m² for core condos (n=230, asking prices as of 2 November 2026), that size and price line up. The live band below shows where core asking prices stand today:
Asking price per m² — Las Terrenas — Core / Town & Central Beach
Median asking price per m² with the 25th–75th-percentile range, derived from active listings tracked by Evalúa's market model. Condo and villa figures exclude known pre-construction listings, which are reported separately under Pre-sales. Land figures are price per m² of lot area, not built area. Categories marked with a chevron open a breakdown — by bedroom count, or by lot size for land — wherever a segment has enough listings of its own to report. Indicative market reference — not a professional appraisal. The listing analyzer scores individual properties against these benchmarks.
The cost method follows the Evalúa canonical model. One difference between the strategies matters here. Under a lease, the tenant pays all the electricity and water. Under Airbnb, guests cover utilities during their stays, but the owner pays for the empty nights, which we estimate at about half a full year's bill.
| Annual carrying cost | Airbnb (short-term) | Long-term lease |
|---|---|---|
| HOA ($300/month) | $3,600 | $3,600 |
| Insurance (midpoint) | $1,200 | $1,200 |
| IPI: 1% × ($250,000 − $182,000) | $680 | $680 |
| Maintenance (1% of value) | $2,500 | $2,500 |
| Owner-paid utilities (~50% of an estimated ~$2,400 full year) | $1,200 | $0 |
| Total | $9,180 | $7,980 |
The IPI line is 1% of the value above the threshold, which DGII's 2026 resolution sets at RD$10,695,494 (about $182,000). It is not 1% of the full price. The threshold also applies to everything you own in the country combined, so a second Dominican property changes this line. The utilities and HOA figures are estimates from Evalúa surveys, not measured medians.
How Do Short-Term and Long-Term Compare Line by Line?
In the base case, Airbnb nets about $5,370 a year before tax and the long-term lease about $2,910. Short-term comes out roughly $2,460 ahead at 47% occupancy. The gross figures make the gap look much wider than that.
The short-term scenario uses $18,900 gross, inside the $18–20K range the Evalúa market model gives for a standard 2BR at market-median rates (May 2026). That works out to about 172 booked nights at an average of roughly $110. The long-term scenario assumes $1,100 a month furnished, with one month empty between tenants. That rent is an indicative estimate from broker conversations, not a measured median.
| Worked ROI example ($250K core condo) | Airbnb @ 47% | Long-term @ $1,100/mo |
|---|---|---|
| Purchase price | $250,000 | $250,000 |
| Closing costs (~5%, resale, no CONFOTUR) | $12,500 | $12,500 |
| Total cash invested | $262,500 | $262,500 |
| Gross rental income | $18,900 | $12,100 (11 months) |
| Property management | −$3,780 (20%) | −$1,210 (10%) |
| Platform host fee | −$567 (3%) | $0 |
| Net rental income | $14,553 | $10,890 |
| Annual carrying cost | −$9,180 | −$7,980 |
| Net P&L, pre-tax | $5,373 | $2,910 |
| Gross yield on price | 7.6% | 4.8% |
| Net yield on cash invested | 2.0% | 1.1% |
| 5-year cumulative, pre-tax (2026 costs held flat) | ~$26,900 | ~$14,550 |
Cleaning fees are missing from the table on purpose. Guests pay them, so they belong on neither side. Property management, on the other hand, is a cost of running a rental business. It shows up here because this is an income comparison, but it would not appear in a cost-of-ownership total.
Taxes are left out of the table. Individuals pay progressive 0/15/20/25% income tax on net rental income, with the first RD$416,220 a year exempt in 2026 (about $6,700–$7,000 depending on the exchange rate). Companies such as an SRL pay a flat 27%. At these income levels, tax narrows the gap in dollars but barely moves the break-even percentage. Ley 30-26 is phasing in changes from 2027 that are reported to raise rental income tax for individuals, so check the current rate with your own Dominican attorney. That is also why the five-year column is pre-tax.
What Happens to the Answer at Different Occupancy Levels?
Short-term rental falls behind the lease somewhere between the model's conservative and base cases. At 35%, Airbnb nets about $1,270 less than the tenant would. At 56%, it nets about $5,220 more.
| Airbnb occupancy | Nights booked | Gross (~$110 avg) | Airbnb net P&L | vs. lease ($2,910) |
|---|---|---|---|---|
| 35% (conservative) | ~128 | ~$14,050 | ~$1,640 | −$1,270 |
| 39% (break-even) | ~142 | ~$15,660 | ~$2,880 | ≈ $0 |
| 45% (base average) | ~164 | ~$18,070 | ~$4,730 | +$1,820 |
| 47% | ~172 | ~$18,900 | ~$5,370 | +$2,460 |
| 56% (optimistic) | ~204 | ~$22,480 | ~$8,130 | +$5,220 |
The table holds the nightly rate constant, and that flatters the low-occupancy rows. In practice, units that fill fewer nights usually also cut their rates to fill them. A unit at 35% occupancy is probably earning below $110 a night as well, so the losing rows are, if anything, worse than shown.
You can rebuild the crossover for any unit with one formula:
Break-even occupancy = (long-term net P&L + short-term carrying cost) ÷ (0.77 × average nightly rate × 365)
The 0.77 is what is left of each booking after 20% management and the 3% platform fee. Our Rental Income Calculator runs this for you once you enter a unit's own HOA, nightly rate and occupancy.
How Sensitive Is Break-Even to the Monthly Rent You Can Get?
The monthly rent you can get moves the answer more than any other input. Each $200 a month added to the lease alternative raises break-even occupancy by about six to seven points.
| Long-term rent | Approx. in pesos | Lease net P&L | Airbnb break-even |
|---|---|---|---|
| $900/month | ~RD$53,000 | ~$930 | ~33% |
| $1,100/month | ~RD$65,000 | ~$2,910 | ~39% |
| $1,300/month | ~RD$76,000 | ~$4,890 | ~46% |
Peso figures use roughly 58.8 DOP per dollar. Long-term rents in Las Terrenas are quoted almost entirely in dollars.
What Does a Long-Term Tenant Actually Pay for a Las Terrenas Condo?
Monthly rental income for a furnished two-bedroom condo in Las Terrenas falls roughly between $900 and $1,300 on a 12-month lease. That is an indicative range from local broker conversations, not a measured median. Units near the beach in the core or the Portillo corridor reach the top of the range. Inland units and older buildings without generators or pools sit near the bottom.
The tenant pool is small and specific: remote workers, teachers at the international schools, restaurant and hospitality managers, and foreign residents trying the town for a year before buying. Long-term rents across the country are far lower than tourist-zone rents, as Numbeo's cost-of-living data for the Dominican Republic shows. Dominican housing statistics from ONE, the national statistics office point the same way. Las Terrenas is a niche market priced for foreigners, so local households do not set the rent level there.
There is a middle option: temporada rentals of three to five months to winter visitors from roughly December to April. They usually command a higher monthly rate than a year-long lease. They also leave the shoulder months for short stays or for your own use. These deals are negotiated privately and the numbers vary too much to model, so treat them as a way to hedge, not as a forecast.
Which Hidden Costs Push the Break-Even Line Higher?
Four costs most often turn a winning Airbnb plan into a losing one. Three of them are on the short-term side.
A fixed management fee. Many Las Terrenas managers charge about $150 a month on top of their 20% commission. That adds $1,800 a year and lifts break-even from about 39% to about 45%, right at the base case. Ask for a commission-only contract or price the fee in before you buy.
Your own use. Blocking four weeks in February costs more than four average weeks, because that is when rates and occupancy peak. As a rough estimate, a peak month you keep for yourself could mean giving up $3,000–$4,000 in gross bookings. A long-term tenant means no personal use at all, so for lifestyle buyers that month is often the real reason to choose Airbnb.
Replacing furniture. Short-stay units wear out linens, mattresses and small appliances far faster than leased ones. Our 1% maintenance line covers the building, not frequent restocking, so set aside a separate furniture budget for an Airbnb.
Storm-season gaps. September and October are the soft months. ONAMET forecasts can empty a calendar even when a storm never lands. The Samaná north coast has historically been less exposed than Punta Cana. Even so, our analysis of hurricane-season cancellations shows how much a near-miss can cost.
Risk Factors: What Would Change This Math?
Each risk below comes with something you can actually watch. If one of them happens, run the numbers again.
- Air access keeps shrinking. El Catey handled about 93,000 passengers in 2025, down 8.4% on 2024 and the third annual fall in a row. If 2026 comes in lower again, expect fly-in demand to weigh on the 45% base case. Most guests drive in from Santo Domingo, which softens the effect but does not cancel it.
- New competing supply. Our listing set shows more than 200 pre-construction listings across the four Las Terrenas zones (as of 2 November 2026). As those projects are delivered and come onto the rental platforms, nightly rates come under pressure before occupancy shows it. A falling average rate is the first sign to watch.
- Tax reform. Ley 30-26 changes rental income tax for individuals from 2027. If your effective rate rises noticeably, the net gap between the two strategies narrows.
- Overall tourism demand. The country received 11.7 million visitors in 2025, according to the Dominican Republic tourism board, against a 12.5 million target for 2026. If the 2026 total comes in flat or lower, assume the conservative occupancy case, where the lease wins.
How Do You Run the Break-Even Test on a Specific Unit?
Use the unit's own numbers, not the seller's projection. In practice:
- Get the actual HOA invoice and the last 12 months of electricity bills, not an estimate.
- Ask for the unit's booking history: nights, average rate and cancellations. Projections are not evidence.
- Get two written quotes for a 12-month furnished lease from people who place tenants, not people who sell condos.
- Read the management contract for fixed fees, linen charges and minimum terms.
- Confirm the reglamento allows stays under 30 days.
- Put all of it into the formula above and compare the result with 35%, the conservative case.
If the break-even comes out above about 45%, a lease or a temporada mix is the safer default. Below about 35%, short-term renting has real room for error. Between the two, the decision depends mostly on how much you value personal use and how hands-on you can be from abroad. Location matters too: our comparison of Las Terrenas East vs Inland shows that higher-priced zones raise the carrying cost along with the achievable nightly rate.
Disclaimer: This analysis is general information using 2026 costs and Evalúa estimates. It is not tax, legal or investment advice, and no return is guaranteed. Confirm tax treatment with a licensed Dominican attorney or accountant.
Frequently Asked Questions
Is Airbnb more profitable than long-term renting in Las Terrenas?
Usually, but by less than the gross figures suggest. On a $250,000 two-bedroom condo, Airbnb nets about $5,370 pre-tax at 47% occupancy versus about $2,910 for a $1,100/month lease. Below roughly 39% occupancy, the lease wins.
What occupancy does a vacation rental in the Dominican Republic need to break even?
It depends on the alternative you compare it with. Against a long-term lease, a Las Terrenas 2BR breaks even at about 33–46% occupancy, depending on whether a tenant would pay $900 or $1,300 a month. Against holding costs alone (about $9,180 a year), it needs only about 30% at a $110 average nightly rate.
How much monthly rental income can a Las Terrenas condo earn on a long-term lease?
A furnished two-bedroom typically leases for roughly $900–$1,300 a month, an indicative range rather than a measured median. Under most leases the tenant pays utilities, while the owner keeps paying the HOA, insurance, IPI and maintenance.
Does CONFOTUR change the comparison?
For a qualifying new-build bought directly from the developer, CONFOTUR exempts rental income tax for 15 years from the project's completion, which helps whichever strategy earns more net income. It does not carry over to a resale buyer, so a resale unit should be modelled with full tax.
Can my condo association stop me from renting on Airbnb?
Yes. There is no national short-term rental licence in the DR, but a building's reglamento de condominio can restrict short stays. Check the current bylaws, and any pending amendment, before you buy.
The Real Question Is the Rent, Not the Occupancy
Most buyers argue about whether a unit can reach 50% occupancy. The more useful question is what a tenant would pay for it. That one figure sets the bar short-term renting has to clear, and in Las Terrenas the bar sits close to typical occupancy. Short-term renting is still the better choice for many owners, especially those who want weeks in the unit themselves. It just needs to be chosen with the crossover point known in advance.
Before you sign, put any listing through the Evalúa Property Analyzer to see how its price compares with measured local asking prices. If you are weighing the beach against the city, compare Santo Domingo's yields with beach-town returns. More worked examples are in our investment guides.
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Analyze a Listing →This article is general information about Dominican Republic real estate, produced with AI assistance and reviewed by the Evalúa editorial team against verified market data and Dominican government sources. It is not legal, tax, or investment advice. Verify details for your specific situation with a licensed Dominican attorney, accountant, or qualified advisor before acting.
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