A rental yield of 4% can look weak next to 8%.
But that does not automatically mean the 8% market is the better investment.
Across Europe, a “good” rental yield depends on much more than the percentage itself.
Property prices, tenant demand, resale liquidity, location quality and market stability can all change how that yield should be interpreted.
Using recent BestYieldFinder data, we compare several European cities to answer a simple question:
What is actually considered a good rental yield in Europe?
What is rental yield?
Gross rental yield measures how much annual rental income a property generates relative to its purchase price.
The formula is:
Gross Rental Yield = Annual Rent ÷ Property Price × 100
For example:
A property worth €200,000 generating €12,000 per year in rent has a gross rental yield of:
€12,000 ÷ €200,000 × 100 = 6%
Gross yield is useful because it makes it easier to compare different properties, districts and cities.
But it is only the first layer of analysis.
Gross yield does not equal net return.
Taxes, maintenance, vacancy, insurance, management and other costs can reduce the actual return significantly.
Investors can compare city and district-level yields through Location Explorer, then move to Yield Finder when searching within a specific budget.
What is considered a good rental yield?
There is no universal threshold.
But as a general framework:
Around 4–5%
Usually associated with more expensive or lower-yield markets.
This can still be attractive if the market offers:
- strong demand
- high liquidity
- lower perceived risk
- stronger resale conditions
Around 5–7%
Often represents a more balanced rental investment profile.
This range can provide a reasonable combination of:
- income
- property value
- tenant demand
- liquidity
Around 7–9%
Generally considered a strong gross rental yield.
At this level, investors should still check whether the market has enough tenant and resale demand to support the return.
Above 9%
Potentially very attractive — but it deserves deeper analysis.
Extremely high yields can sometimes come from:
- very low property prices
- weaker neighbourhoods
- lower liquidity
- small market samples
- unusually high asking rents
A high yield should create more questions, not fewer.
The higher the return moves above the surrounding market, the more important it becomes to check demand, property condition and local market depth.
European rental yields at a glance
| City | Gross Rental Yield | Median Asking Price | Median Rent | Market Profile |
|---|---|---|---|---|
| Genoa | 9.24% | €138,000 | €900 | High yield + strong Market Score |
| Catania | 9.18% | €135,000 | €700 | Low entry price + high yield |
| Rome | 7.38% | €309,000 | €1,600 | Strong income profile |
| Valencia | 6.18% | €325,000 | €1,600 | Balanced |
| Warsaw | 6.10% | 871,610 zł | 4,000 zł | Strong demand |
| Madrid | 5.49% | €465,000 | €1,890 | Higher price + strong resale demand |
| Verona | 4.87% | €285,000 | €1,000 | Lower yield + strong demand |
Source: Genoa, Catania, Rome, Valencia, Warsaw, Madrid, Verona
This range illustrates why one number cannot define a good investment.
Is 4–5% rental yield good?
It can be.
Verona, for example, shows a gross rental yield of approximately 4.87%.
That is considerably lower than Genoa or Catania.
But Verona also shows relatively strong demand:
- Rental demand: 70
- Sales demand: 82
This creates a different investment profile.
The investor accepts lower headline income in exchange for stronger market activity.
Madrid shows something similar.
Its city-level gross rental yield is approximately 5.49%, but Sales Demand reaches 85.
So a 5% yield should not automatically be classified as poor.
The question is:
What does the investor receive in exchange for the lower yield?
Is 6% rental yield good?
A gross yield around 6% can often represent a strong middle ground.
Two useful examples are Valencia and Warsaw.
Valencia
- Gross yield: 6.18%
- Median asking price: €325,000
- Median rent: €1,600
- Rental demand: 65
- Sales demand: 76
Warsaw
- Gross yield: 6.10%
- Median asking price: 871,610 zł
- Median rent: 4,000 zł
- Rental demand: 79
- Sales demand: 92
The yields are almost identical.
But the markets are not.
Warsaw shows much stronger demand indicators, while Valencia offers a different pricing and market structure.
This is why 6% should be treated as a starting point for comparison rather than a verdict.
Is 7% rental yield good?
For many long-term rental investors, 7%+ gross yield is already strong.
Rome currently provides a useful example.
- Median asking price: €309,000
- Median monthly rent: €1,600
- Gross rental yield: 7.38%
- Market Score: 87
- Rental demand: 71
- Sales demand: 75
Source: Rome Property Market
What makes Rome interesting is not only the 7.38% yield.
It combines that return with relatively strong demand and a high Market Score.
That makes the yield easier to support with broader market fundamentals.
But the city average still hides major differences.
District-level yields in Rome can vary significantly, which is why investors should move from Location Explorer into Yield Finder before choosing an individual area.
What about 9%+ rental yield?
This is where the numbers become particularly interesting.
Both Genoa and Catania currently show gross rental yields above 9%.
Genoa
- Gross yield: 9.24%
- Median asking price: €138,000
- Median rent: €900
- Market Score: 94
- Investability: 78
- Rental demand: 59
- Sales demand: 64
Catania
- Gross yield: 9.18%
- Median asking price: €135,000
- Median rent: €700
- Market Score: 81
- Investability: 75
- Rental demand: 49
- Sales demand: 62
Both look attractive from an income perspective.
But Genoa combines the slightly higher yield with stronger rental demand and a significantly higher Market Score.
So even when two markets both offer around 9%, the investment profiles can still differ.
Why the highest yield is not automatically the best
Imagine two markets:
Market A
- Yield: 9%
- Rental demand: 45
- Sales demand: 55
Market B
- Yield: 6.5%
- Rental demand: 80
- Sales demand: 90
Market A provides more theoretical rental income relative to price.
Market B may offer:
- easier tenant acquisition
- stronger resale liquidity
- a larger active market
Which one is better?
There is no universal answer.
It depends on the investor’s strategy.
Yield measures income efficiency. It does not measure the entire quality of the market.
Property type can change the answer
Even within the same city, a “good” yield depends on the apartment type.
For example, smaller units can sometimes produce stronger price-to-rent ratios because rental income does not decline proportionally with purchase price.
Studios and 1-bedroom apartments may outperform larger units in one market.
In another city, larger apartments may produce better economics.
That is why investors should compare:
city → district → apartment type → individual property
instead of relying on one citywide percentage.
Properties can then be used to move from market-level analysis to individual sale listings with estimated rental income and gross yield.
Gross yield is not net yield
A city showing 8% gross yield does not mean an investor keeps 8%.
The real return may need to account for:
- vacancy
- maintenance
- property tax
- insurance
- condominium charges
- property management
- acquisition costs
- financing
For example, a property with:
7% gross yield
could potentially become:
5% net yield
after operating costs.
Another 7% property with high charges and management costs could end up much lower.
Once a specific property has been shortlisted, investors can use the ROI Calculator to model these costs.
For deeper property-level analysis, the Report Generator can compare the property against local market benchmarks.
So what rental yield should you target?
Instead of choosing one universal number, it is more useful to think in ranges.
4–5%
Potentially reasonable in expensive or highly liquid markets.
Check whether strong demand, location quality or resale liquidity justify the lower income.
5–7%
Often a balanced range.
This can be attractive when supported by healthy rental and sales demand.
7–9%
Strong headline income.
Check district quality, tenant demand and operating costs before assuming the investment is superior.
9%+
Potentially excellent.
But investigate carefully why the yield is so high.
The question should never be:
“Is 8% good?”
It should be:
“Why is this property or market offering 8%, and what risks come with it?”
A practical way to analyse yield
A simple BestYieldFinder workflow can look like this:
1. Location Explorer
Compare cities and districts by price, rent, demand, Market Score and gross yield.
2. Yield Finder
Filter locations by budget and target profitability.
3. Properties
Move from market averages to individual listings.
4. ROI Calculator
Add vacancy, taxes, maintenance, insurance and other costs.
5. Report Generator
Compare a serious property candidate with its surrounding market.
Start with gross yield. Finish with net return.
Final thoughts
A good rental yield in Europe is not one fixed percentage.
4–5% can make sense in a highly liquid, expensive market.
6% can represent a strong balance between income and demand.
7–9% can provide excellent headline returns when supported by healthy fundamentals.
And 9%+ can be extremely attractive — but should always trigger deeper analysis.
The most important question is not:
“Which city has the highest yield?”
It is:
“Does the yield make sense given the price, demand, liquidity and costs of this specific market?”
That is what turns a rental yield from a percentage into an investment decision.
Market data used in this article reflects BestYieldFinder reports available in September 2026. Asking prices, rents, yields and demand indicators can change over time.