Is a vacation rental in Baja California Sur a good investment? The data says yes — but the returns vary dramatically depending on where you buy. Here’s the complete Airbnb ROI analysis for Cabo San Lucas vs La Paz in 2026.
Cabo San Lucas — Vacation Rental Numbers
| Metric | Value |
|---|---|
| Active Airbnb listings | 8,300+ |
| Average occupancy | 53% |
| 2BR annual revenue (prime areas) | $45,000+ USD |
| 3BR luxury annual revenue | $60,000+ USD |
| Gross yield | 6-10% |
| Net yield (after expenses) | 4-7% |
| Top neighborhoods by yield | El Tezal, Centro, Cabo Bello |
| Monthly operating costs | $1,250 – $2,700 |
| Peak months | December, March |
Cabo Operating Cost Breakdown
- HOA fees: $400-$650/month for resort-style condos
- Electricity (A/C): biggest variable cost, especially summer
- Property management: typically 15-25% of rental income
- Cleaning: $50-$100 per turnover
- Insurance: $800-$2,000/year
- Maintenance reserve: 3-5% of property value/year
La Paz — The Emerging Opportunity
La Paz has far fewer vacation rental listings, which means less competition and potentially higher occupancy for well-positioned properties. Entry prices are 30% lower than Cabo, so the yield calculation changes significantly:
- Lower purchase price = lower capital investment
- Less competition = potentially higher occupancy
- Growing tourism and digital nomad market
- 15-28% property appreciation while you earn rental income
Side-by-Side Comparison
| Factor | Cabo San Lucas | La Paz |
|---|---|---|
| Entry investment (2BR condo) | $350K – $600K | $200K – $400K |
| Airbnb competition | Very high | Low |
| Gross rental yield | 6-10% | Growing |
| Property appreciation | 5-8%/year | 15-28%/year |
| Tourism infrastructure | Mature | Growing |
| Best for | Cash flow now | Appreciation + emerging yield |
The Smart Strategy
Many savvy investors are doing both: a cash-flow property in Cabo’s proven rental market, plus an appreciation play in La Paz where entry prices are low and growth is explosive. Browse investment properties across both markets at https://advancedmlssearch.bajasurrealtors.com.
Related Articles
- La Paz vs Cabo San Lucas: Real Estate Investment Comparison 2026
- Costo de Vida en La Paz vs Cabo San Lucas 2026 — Comparación Real
- Cabo San Lucas vs Tulum: Which is Better for Real Estate Investment in 2026?
- Guía Completa: Invertir en Bienes Raíces en Los Cabos 2026
- Los Cabos Real Estate Market Report 2026 — What Zillow Doesn’t Show You
Ready to Invest?
Search 1,000+ properties across Cabo San Lucas, La Paz, and all of Baja California Sur.
bajasurrealtors.com | +52 1 612 238 0771 | WhatsApp
More Market Data
Baja Sur Realtors — Luxury Real Estate in Baja California Sur
📍 Plaza Cerralvo, Local 6, Paseo Alvaro Obregón 1665, La Paz, BCS 23000, Mexico
📞 +1 (213) 719-2121 | 📧 contacto@bajasurrealtors.com
⭐ 4.9/5 on Google (97 reviews) | bajasurrealtors.com | MLS Search
Pingback: Is 2026 a Good Time to Buy Property in Baja California Sur?
Pingback: Closing Costs in Cabo San Lucas & BCS 2026 — Complete Breakdown
Pingback: Invertir en Bienes Raíces en Los Cabos 2026 | Guía Completa
Pingback: Real Estate Agency Cabo San Lucas | Baja Sur Realtors | 4.9★
Pingback: La Paz vs Cabo San Lucas Real Estate 2026 — Investment Comparison