Punta Cana Rental Yield & Cap Rates
The Dominican Republic’s deepest short-term-rental market — the highest headline nightly rates in the country, offset by the fiercest competition anywhere on the island.
The Dominican Republic’s deepest short-term-rental market — the highest headline nightly rates in the country, offset by the fiercest competition anywhere on the island.
Punta Cana is the single largest vacation-rental market in the Dominican Republic, with roughly 6,700 active short-term listings feeding an established international airport and a wall of all-inclusive resorts. That scale is the whole story: demand is reliable and year-round, but so is the supply of competing condos and villas.
For an investor, Punta Cana is a volume play rather than a scarcity play. Median occupancy sits around 50% — solid for the Caribbean — and gross yields on well-positioned 1–3BR product land in the high-single digits. The premium is real but it has to be earned through location, finish, and management.
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 | $146,705 | $13,876 | 9.5% | 5.9% | 6.9% |
| 2 bedroom | $225,700 | $17,272 | 7.7% | 4.6% | 5.6% |
| 3 bedroom | $315,980 | $27,647 | 8.7% | 5.5% | 6.5% |
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 | Punta Cana (market median) |
|---|---|
| Median nightly rate (ADR) | $221 |
| Median annual occupancy | 50% |
| Median annual revenue | $34,740 |
| Active rental listings | ~6,701 |
The market’s defining feature is the gap between beachfront and everything else. An ocean-view unit commands more than double the nightly rate of an equivalent inland condo in Evalúa’s model — the widest amenity spread of any market we track. Verón and inland Punta Cana Village offer the lowest entry prices, but the rental demand and the pricing power both live on the sand.
Seasonality. Occupancy peaks in February (around 65%) and bottoms out in May (around 36%). The annual yield figures above assume full-year operation, so they already absorb that low season — but expect lumpy, front-loaded cash flow.
Trailing-twelve-month data for La Altagracia shows the classic oversupply signature: supply up around 16% while demand grew only about 5%, dragging revenue and nightly rates down a few points. This is a cooling market where new inventory is outpacing new guests — buyers have negotiating room, but should underwrite conservatively on occupancy rather than assume the headline peak.
| Revenue YoY | Nightly rate YoY | Occupancy YoY | Supply YoY | Demand YoY |
|---|---|---|---|---|
| −5% | −6% | +0% | +16% | +5% |
Momentum is measured at the province level (La Altagracia); 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 Punta Cana, per Evalúa’s market model.
| Amenity | ADR premium | Revenue premium |
|---|---|---|
| Pool | +7% | +7% |
| Ocean view | +108% | +126% |
Ocean view is the dominant lever here: Evalúa’s model puts the beachfront ADR premium at well over +100%, and the revenue premium even higher. A pool adds a comparatively modest single-digit lift — in a market this saturated with shared-pool condo complexes, a private pool is the norm rather than a differentiator.
The rental-income calculator opens pre-set to Punta Cana, 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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Because entry prices are also the highest in the region. The headline $220+ ADR is a market-wide median inflated by luxury villas; the 1–3BR condo segment most investors actually buy runs a more modest ADR against a $147K–$316K asking price, which lands gross yields in the roughly 8–10% band — strong, but not the 12%+ some developer brochures imply.
Not necessarily — it’s a reason to be selective. A cooling, oversupplied market rewards buyers who can negotiate on price and who buy differentiated product (true beachfront, walkable location, standout finishes). It punishes buyers who overpay for generic inland condos competing with thousands of identical units.
No. The cap rates use asking prices and a modeled operating expense that excludes maintenance and insurance, so treat them as an optimistic ceiling. Your real net return will be lower once management (typically 15–20% plus a fixed monthly fee), reserves, and vacancy are included. Use the rental-income calculator to model your own numbers.
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.