Cabarete Rental Yield & Cap Rates
The north coast’s kitesurf-and-windsurf capital — a young, international rental base with high occupancy, and the only cooling-province market where supply is actually shrinking.
The north coast’s kitesurf-and-windsurf capital — a young, international rental base with high occupancy, and the only cooling-province market where supply is actually shrinking.
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.
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 medians for active listings from Evalúa’s market model.
| 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
| Metric | Cabarete (market median) |
|---|---|
| Median nightly rate (ADR) | $117 |
| Median annual occupancy | 53% |
| Median annual revenue | $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.
Puerto Plata province is cooling on every axis — revenue, rates and occupancy all down year-on-year. The one bright spot in the provincial data is that supply is contracting, not expanding: fewer listings chasing the demand that remains. That’s a self-correcting signal, and it’s the reason Cabarete and Sosúa are cooling more gently than an oversupplied market like Cabrera.
| Revenue YoY | Nightly rate YoY | Occupancy YoY | Supply YoY | Demand YoY |
|---|---|---|---|---|
| −12% | −6% | −5% | −7% | −6% |
Momentum is measured at the province level (Puerto Plata); a single submarket can diverge from its province, as noted above where it applies.
How much a pool or an ocean view lifts the median 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% |
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.
The rental-income calculator opens pre-set to Cabarete, with the market’s ADR and occupancy medians 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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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.
Good for running yield, mixed for entry. Contracting listings mean less competition for the demand that exists, which supports occupancy and rate. But it can also signal a softer sales market, which is where a disciplined buyer finds negotiating room. It rewards buying well rather than chasing.
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 medians, calibrated May 2026). 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.