Los Cabos Rental Yield by Unit Type: Studio Through Villa

Los Cabos rental yield by unit type peaks at the two- and three-bedroom condo, not the cheap studio or the trophy villa. Mid-size units pair strong occupancy with manageable costs, so more of each gross dollar survives as profit.

Why Unit Type Matters More Than Location Hype

Everyone shops by neighborhood first. Marina view, beachfront, golf. Fair. But after running the numbers on hundreds of Cabo units, the variable that moves returns most inside a given building is bedroom count.

Bedroom count controls four things at once: the pool of guests who can book you, the nightly rate you can charge, how much you spend turning the unit over, and who you can eventually sell to. Get that mix wrong and a great address still underperforms.

If you are building an income plan, start with my Los Cabos rental cap rates and ROI guide for the framework, then come back here to pick the unit size.

The Data Behind the Comparison

I am using three public-style sources for the shape of the market: AirDNA's August 2026 supply data, Airbtics revenue estimates, and my own deal files. Treat all of it as based on market data, not a promise. Short-term rental numbers swing by building, view, management quality and the year you measure.

The supply mix is the first useful signal. Of 338 tracked listings in the AirDNA snapshot:

• 1-bedroom: 41.4% of supply
• 2-bedroom: 22.5% of supply
• 3-bedroom: 15.7% of supply
• Studio, 4-bedroom and larger: the remaining roughly 20%

Nearly half the competition is fighting for couples in 1-bedrooms. Families and groups, who book longer and spend more per stay, have fewer good options. That gap is the opportunity.

For revenue, Airbtics puts the average 2-bedroom at about $45,000 in annual revenue at roughly 55% occupancy. Do the math and that implies an average nightly rate in the low $220s. Gross yields for 2-3 bedroom units come out near 18.7% in Cabo San Lucas and 13.2% in the Corridor. Cabo San Lucas is higher because purchase prices per square foot are lower and the tourist base is deeper. The Corridor is lower on percentage but often better on resale quality.

Tools like AirDNA and Airbtics are good starting points. Pull comps for the exact building before you believe anyone, including me.

Yield Comparison Table by Unit Type

This table pulls the pieces together. Ranges are illustrative and based on market data, not guarantees. Your building, view and management will move you up or down.

Unit Type	Typical Occupancy	Gross Yield Range	Net Margin Pressure	Verdict
Studio	45-55%	8-12%	High (turnover heavy)	Skip unless it is a hotel-managed unit
1 bedroom	50-60%	10-14%	Medium-high	Fine for couples markets, crowded supply
2 bedroom	52-60%	13-19%	Medium	Sweet spot
3 bedroom	48-58%	11-17%	Medium	Strong for families and groups
4 bedroom	40-50%	7-11%	Medium-high	Lifestyle first, yield second
5+ bedroom villa	30-45%	4-8%	High (staff, pool, upkeep)	Trophy asset, not a yield play

Gross yield is annual rental revenue divided by purchase price. It is not what lands in your account. Cap rate and cash-on-cash come later in this post.

Why Studios Underperform Despite the Low Entry Price

Studios tempt first-time investors because the check is small. A smaller check does not mean a better return. Here is why they disappoint.

• Turnover ratio: A studio gets cleaned, laundered and restocked as often as a 2-bedroom but earns a fraction per stay. Cleaning is a fixed cost that eats thin revenue.
• Short stays: Studios attract one- and two-night bookings, which multiplies the turnover problem.
• Weak resale pool: Few end users want a studio as a second home, so you depend on other investors at exit.
• Fee drag: HOA fees are usually priced on square footage, but internet, utilities and management minimums are not. Fixed costs weigh more on a smaller number.

The exception is a studio inside a hotel-managed or condo-hotel program where the operator handles everything. Even then, read my condo-hotel investment guide before you sign anything.

The 1-Bedroom Trap: Popular and Crowded

One-bedrooms are 41.4% of supply for a reason. They are easy to buy, easy to furnish and match the couples traffic Cabo gets year-round. They are also the most competitive category on the platforms.

When four out of ten listings look like yours, price wars start the minute the season softens. You can still make money, especially in walkable areas like El Medano and the Marina, but you win on presentation and reviews, not on scarcity.

Who Should Buy a 1-Bedroom

Buyers who will use the unit themselves a few weeks a year, want low upkeep, and treat rental income as a carrying-cost offset rather than a profit engine. That is a legitimate plan. Just call it what it is.

The 2-Bedroom Sweet Spot

I have watched the 2-bedroom condo outperform on a risk-adjusted basis again and again. Not every month, not every building, but over a full cycle it keeps coming out on top.

The reasons stack up:

1. Bigger guest pool. Two couples, a family of four, or a small group can all book you. That widens demand beyond couples.
2. Less supply. At 22.5% of listings, 2-bedrooms face about half the competition of 1-bedrooms.
3. Revenue scales faster than costs. Nightly rate rises meaningfully from 1BR to 2BR, while cleaning and management costs rise only modestly.
4. Liquid at exit. Second-home buyers and investors both want a 2-bedroom, so you have two buyer pools.

That Airbtics figure of roughly $45,000 at 55% occupancy is a decent anchor. Buy a well-located 2-bedroom at a sensible price per square foot and the gross yield lands in the mid-to-high teens in the more affordable parts of Cabo San Lucas.

3-Bedroom Units: Groups Pay for Space

At 15.7% of supply, 3-bedrooms are scarce relative to demand from extended families, golf trips and bachelor groups. Groups spread cost across more people, so they will pay a higher nightly rate without blinking.

The tradeoff is occupancy. Larger parties plan farther ahead and travel at peak times, which makes your calendar lumpier. You may earn more per night and book fewer nights.

In the Corridor, Palmilla and Cabo del Sol product tends to carry 3-bedrooms that suit this group traffic, though the gross yield sits lower because purchase prices are higher. That is why the Corridor's 2-3 bedroom figure is closer to 13.2% than 18.7%.

4-Bedroom and 5+ Bedroom Villas: Why Bigger Earns Less

Villas post eye-popping nightly rates. A five-bedroom with a pool and staff can ask several thousand dollars a night in peak season. Owners quote that number at cocktail parties. They rarely quote the occupancy or the costs.

The Villa Math Problem

Three forces drag villa yields down:

• Price: Purchase prices rise faster than revenue as you add bedrooms, pool, views and land.
• Occupancy: The guest pool shrinks. Few groups need 5+ bedrooms, so occupancy often sits well below 50%.
• Operating cost: Pool service, landscaping, staff, security, deeper cleaning and larger utility bills run year-round, rented or not.

A villa can still be a smart purchase. Just buy it for the life you will live there, the appreciation and the scarcity, not for the yield. If you are comparing the formats, read my condo vs villa breakdown.

Seasonal Patterns by Unit Size

Cabo seasonality is real, and it hits unit types differently.

• Winter to spring (roughly November through April): Peak demand for every size. Smaller units fill with couples, bigger units with families and groups, especially around Christmas, New Year and spring break.
• Summer: Softer demand. Mid-size units hold up better because families travel on school breaks. Studios and large villas tend to see the biggest dips.
• Hurricane season (roughly June through November, with the highest risk in late summer and early fall): Bookings thin out and cancellations rise. See the National Hurricane Center for current outlooks, and my hurricane season prep guide.

Large villas are the most seasonal because group trips cluster around holidays. A two-bedroom's broader guest mix smooths the curve. For month-by-month data see Cabo vacation rental income by month.

Cap Rate vs Cash-on-Cash by Unit Type

Two metrics matter, and people confuse them constantly.

Cap rate is net operating income divided by purchase price. It ignores financing. Use it to compare properties.

Cash-on-cash return is annual pre-tax cash flow divided by the cash you actually put in. Use it to judge your deal given how you pay.

Most Mexican purchases by Americans and Canadians are cash or close to it, since mortgage options for foreigners are limited and pricey. That makes cash-on-cash and cap rate nearly identical for many buyers. Once you factor in a fideicomiso setup, closing costs of roughly 5-8% (see closing costs in 2026) and furnishing, your true basis is higher than the sticker price.

A Simple Walkthrough

Say a 2-bedroom costs $400,000, you put in another $40,000 for closing and furnishing, and it grosses $45,000. Subtract management of 20-25% ($9,000 to $11,250), HOA of $4,000-$7,000, utilities and internet of $2,000-$3,000, property tax and fideicomiso fees, and a repair reserve. Net income lands somewhere around $17,000 to $24,000, which is a 3.9%-5.5% cash-on-cash on $440,000 invested, or about 4.3%-6% as a cap rate on the $400,000 price.

That is a long way from the 18.7% headline gross yield. Gross yield is a marketing number. Net yield is your life. For a deeper cost breakdown see property management costs in Los Cabos.

Where the 2BR wins is the spread between what it earns and what it costs relative to price. Studios and villas leave less of each dollar after expenses.

Which Unit Type Fits Which Goal

Match the unit to the goal, not the other way around.

1. Maximum income per dollar: 2-bedroom condo in a well-run, rental-friendly building.
2. Family use plus income: 3-bedroom condo or small villa in the Corridor.
3. Lowest effort, small check: 1-bedroom in a hotel-style or managed building, with realistic expectations.
4. Legacy and lifestyle: 4+ bedroom villa where yield is a bonus.

Location still matters. Cabo San Lucas and the Marina favor volume and higher yield percentages. San Jose del Cabo offers a calmer, year-round guest base. The Corridor brings premium rates and premium prices.

Mistakes I See Buyers Make

• Trusting platform projections. Sales teams show peak-month revenue and call it average.
• Ignoring rental rules. Some buildings restrict short-term stays. Read Airbnb regulations in Los Cabos and your HOA bylaws first.
• Underbudgeting furnishings. A rental-ready 2-bedroom costs real money to furnish well.
• Forgetting taxes. Foreign owners owe Mexican tax on rental income. See the rental income tax guide and the SAT site.
• Skipping the HOA math. A bad reserve fund turns into a special assessment. Review the HOA reserve fund audit guide.

My Bottom Line

If you want one answer, buy a 2-bedroom. It has half the competition of a 1-bedroom, a broader guest pool than a studio, and a lower cost base than a villa. It is also the easiest to sell.

If you want a villa, buy it with open eyes and your own calendar in mind. Run your own numbers with the rental income calculator before you fall in love with a view.