Cabarete Rental Yield & Cap Rates
The north coast’s kitesurf-and-windsurf capital — a young, international rental base with high occupancy, and the rare market holding its nightly rate while the province around it cools.
Photo: Alex Proimos / Wikimedia Commons (CC BY 2.0)
Cabarete is a niche that punches above its size. Its identity as a world-class kitesurfing and windsurfing destination gives it a distinct, weather-driven demand profile and a younger, longer-staying international guest base than the resort markets. That translates into a healthy median occupancy of around 53% across roughly 1,200 active listings.
It sits within a north-coast province that is cooling broadly — but Cabarete carries a quiet counter-signal that separates it from its neighbor Sosúa.
Yields by Bedroom — Cabarete
Estimated purchase price, annual short-term-rental revenue, gross yield, and capitalization rate (with and without a CONFOTUR tax exemption) for the 1–3BR segment. Figures are market averages across active listings from Evalúa’s market model — a strong minority of high-performing listings pulls an average above what a typical property earns, so treat these as an upper-middle case rather than a forecast for any one unit.
| Property | Est. Price | Annual Revenue | Gross Yield | Cap Rate | Cap Rate (CONFOTUR) |
|---|---|---|---|---|---|
| 1 bedroom | $163,865 | $10,246 | 6.3% | 3.5% | 4.5% |
| 2 bedroom | $252,100 | $18,764 | 7.4% | 4.5% | 5.5% |
| 3 bedroom | $352,940 | $29,212 | 8.3% | 5.1% | 6.1% |
Read the cap rates as an optimistic ceiling. They are calculated on asking prices, which typically sit above achievable sale prices, and on a modeled operating expense that excludes maintenance and insurance. Your real net return will be lower once full management (usually 15–20% plus a fixed monthly fee), reserves, and vacancy are included. The CONFOTUR column assumes a property certified for the incentive, which waives annual property tax (IPI) and transfer tax.
Market data: Evalúa market model · updated May 2026
The Market Read
| Metric | Cabarete (market average) |
|---|---|
| Average nightly rate (ADR) | $117 |
| Average annual occupancy | 53% |
| Average annual revenue per listing | $19,247 |
| Active rental listings | ~1,226 |
Cabarete’s appeal is its demand mix. Watersports tourism smooths the calendar in a way pure beach tourism doesn’t — the windy season draws visitors when other markets are quiet — which underpins that 53% occupancy. Gross yields build steadily by bedroom, from the low-6% range on 1BR up to the low-8% range on 3BR, so larger units carry the better yield here.
Seasonality. Occupancy peaks in February (around 56%) and bottoms out in May (around 33%). The annual yield figures above assume full-year operation, so they already absorb that low season — but expect lumpy, front-loaded cash flow.
Momentum — trailing 12 months
Cabarete is pulling away from its province. Puerto Plata as a whole is cooling on every axis and shedding listings, while Cabarete’s own nightly rate is up slightly year-on-year and its revenue decline is roughly a third of the province’s. The pressure here is supply: listings are up around 18% in the town, and occupancy has given back about five points as a result. Demand is strong enough to defend rate — the open question is whether it keeps pace with the new inventory arriving.
| Revenue YoY | Nightly rate YoY | Occupancy YoY | Supply YoY | Demand YoY |
|---|---|---|---|---|
| −4% | +2% | −5% | +18% | −6% |
Measured for Cabarete itself over the trailing twelve months (as of 2026-07-15). Demand growth is published at province level only (Puerto Plata, as of 2026-05-31).
What Moves the Nightly Rate
How much a pool or an ocean view lifts the average nightly rate (ADR) and annual revenue in Cabarete, per Evalúa’s market model.
| Amenity | ADR premium | Revenue premium |
|---|---|---|
| Pool | +10% | +9% |
| Ocean view | +35% | +35% |
What drives the numbers
Ocean view adds roughly a third to nightly rates in Evalua’s Cabarete model, with a matching revenue premium — but in a watersports market, direct beach or lagoon access and proximity to the kite beaches can matter as much as a headline sea view. Pool premium is modest and single-digit.
Model a specific Cabarete property
The rental-income calculator opens pre-set to Cabarete, with the market’s ADR and occupancy averages loaded. Enter your own purchase price, bedrooms, and financing to see a net-yield projection with management, taxes, and seasonality built in.
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Frequently Asked Questions
What makes Cabarete’s demand different from a resort market?
Weather. Kitesurfing and windsurfing draw guests during the windy months, which partially offsets the classic Caribbean low season and supports a steadier occupancy calendar. The guest base also skews younger and toward longer stays, which can reduce turnover costs relative to short resort bookings.
Cabarete is adding listings quickly — what does that mean for a buyer?
It means competing on something other than price. Supply is up around 18% year-on-year while the wider province is shedding listings, and that extra inventory is showing up as lower occupancy rather than lower rates — the nightly rate has held. A property that stands out on location, condition or amenities should still fill its calendar; a generic unit will feel the competition first.
Are the cap rates on this page net figures?
No. They’re modeled on asking prices with an operating expense that excludes maintenance and insurance — an optimistic ceiling. Your true net will be lower after management, reserves and vacancy. Run your own numbers in the rental-income calculator before committing.
Compare across the peninsula in the Samaná rental-yield guide, review the CONFOTUR tax incentive that lifts the cap rates above, or read the glossary for definitions of gross yield, cap rate, and ADR.
Data reflects Evalúa’s market model (market averages across active listings, calibrated May 2026 — averages sit above what a typical listing earns). Basis: asking prices (see asking_to_sale_discount); cap rates use a modeled opex that excludes maintenance/insurance — treat as optimistic. The Dominican Republic has no public sales register, so all figures are derived from active listing and rental-performance data — they are estimates, not guarantees. Rental performance varies by property, management quality, and market conditions. This page is for informational purposes only and does not constitute investment advice. Verify all figures independently before making any decision.