A few years ago the logic of a Budapest buy-to-let was simple: a studio in the centre, short-term guests, and the numbers took care of themselves. By 2026 that formula has changed on several fronts. Short-term letting has been banned in District VI since January, no new short-term accommodation can be registered anywhere in Budapest until the end of 2026, and several districts are preparing restrictions of their own. Meanwhile the long-term rental market has held up well, and rents have kept rising.
In this article we look at what a Budapest rental flat actually earns today, how to calculate net yield properly, and which strategy works under the 2026 rules.
Gross or net yield: what does the number tell you?
Gross yield is a year's rent divided by the purchase price. It is simple and easy to compare, but it leaves a lot out. Net yield is more honest: from the annual income you deduct empty months, owner's costs (service charge, insurance, maintenance, any management fee) and tax, then divide the result by the total amount invested, which includes transfer tax, legal fees and furnishing on top of the price.
According to Global Property Guide data from August 2026, the average gross yield in Budapest was 4.84%, and the provider notes that net yields are typically 1.5 to 2 percentage points lower.
What does a Budapest flat earn, district by district?
Global Property Guide's gross yields by flat size for selected districts, August 2026:
| District | Studio | 1 bedroom | 2 bedrooms | 3 bedrooms |
|---|---|---|---|---|
| III | 4.36% | 4.74% | 5.39% | 4.51% |
| VI | 4.36% | 4.22% | 5.40% | 5.30% |
| VII | 4.86% | 3.91% | 4.04% | 4.62% |
| VIII | 5.21% | 4.47% | 4.54% | 5.05% |
| IX | 4.31% | 3.84% | 3.55% | 5.35% |
| XI | 3.70% | 3.61% | 3.76% | 4.25% |
| XIV | 4.38% | 4.17% | 3.84% | 4.29% |
| Budapest average | 4.39% | 4.24% | 4.75% | 5.63% |
Two things stand out. First, the gaps between districts are smaller than many people assume: most values sit between 3.5% and 5.5%. Second, larger flats do not yield less than small ones. If anything, family-sized two- and three-bedroom flats are in steady demand on the long-let market.
Worked example: a 55 m² flat in District VIII
Here is a concrete, conservatively calculated example. Every assumption is an indicative estimate.
- Price: 55 m² × HUF 1.25 million = HUF 68.75 million (based on Otthon Centrum's first-half 2026 average for brick-built flats in District VIII).
- Purchase costs: 4% transfer tax (HUF 2.75m), lawyer including VAT approx. HUF 0.45m, refresh and furnishing approx. HUF 3m. Total invested: approx. HUF 75 million.
- Rent: HUF 240,000 a month, the District VIII median in August 2026 (ingatlan.com). Allowing one empty month a year, income is HUF 2.64 million.
- Owner's costs: service charge approx. HUF 300,000, insurance approx. HUF 40,000, maintenance budget approx. HUF 200,000 a year.
- Tax: 15% personal income tax on 90% of income (using the 10% flat cost allowance), approx. HUF 356,000.
| Measure | Value |
|---|---|
| Gross yield on price (12 months' rent / price) | approx. 4.2% |
| Annual net income after tax | approx. HUF 1.74m |
| Net yield on total investment | approx. 2.3% |
For comparison, the Hungarian central bank's base rate was 5.50% in September 2026. If you are after current income alone, compare a flat with other investments. But if you want to preserve wealth in real terms over the long run, a well-chosen Budapest flat remains a strong asset: according to the central bank (MNB), Budapest house prices rose 26% year on year in the fourth quarter of 2025, although that momentum has clearly slowed in 2026.
Short-term letting in 2026: where do the rules stand?
Short-term, Airbnb-style letting rules differ by district and are changing fast. As of October 2026:
- Budapest as a whole: until 31 December 2026, no new private or other short-term accommodation can be registered. Existing, registered units may continue to operate.
- District VI: since 1 January 2026, the permitted number of short-term letting days is zero, so no such accommodation can operate. Hungary's Supreme Court (Kúria) ruled the decree lawful in November 2025.
- District VII: since autumn 2025, no new operating permits are issued in residential buildings; existing operators may continue.
- District I: in an online consultation in autumn 2026, 58.6% of participants backed a full ban. Press reports suggest a draft decree could reach the council in November.
- District VIII: a tiered restriction is in preparation, with a draft cap of 4% of the housing stock at district level and 10–20% per building.
- District XIII: ran an online consultation; the district estimates 1,100–1,200 flats are used for short-term letting.
Under the current rules, a district can set by decree how many days a year a flat may be used as short-term accommodation (zero included), and can attach conditions such as the consent of the building's owners. None of this applies to long-term residential tenancies.
Treat any listing that argues its case with short-term rental yields with caution. The moratorium ends in 2027, but several districts may have their own restrictions in place by then. Investment decisions today are best based on long-term rents.
Long-term vs short-term letting
| Factor | Long-term letting | Short-term letting |
|---|---|---|
| Regulatory risk | Low | High, varies by district |
| New units in Budapest | Not affected | Cannot be registered until end-2026 |
| Tax for private individuals | 15% income tax, no social contribution | More complex: income tax, social contribution, tourist tax, NTAK reporting |
| Day-to-day work | Little | Constant (cleaning, guest handling) |
| Predictability of income | High | Seasonal |
What works in the long-term rental market today?
Know your tenant. Students and young professionals look in Districts IX, VIII and XI, near Corvinus, Semmelweis and the Technical University. Young couples and expats favour Districts XIII and VI, families Districts II and XII. Furnishing, number of bedrooms and rent should match the audience. Near a university, several separately accessible rooms count for more; in a family area, storage and a quiet bedroom do.
Ask for proper security. A deposit of several months' rent and a notarised move-out declaration are established practice in Hungary, and the latter speeds up recovering the flat considerably if there is a dispute.
Build in indexation. For longer leases, agree an annual inflation-linked rent review.
Document everything. Make a handover record with photos, an inventory and meter readings. At move-out you compare the flat against it, which keeps settling the deposit free of disputes.
Plan for tax. As a private individual, income from long-term residential letting is taxed at 15% with no social contribution tax. You can choose between a 10% flat cost allowance and itemised costs. If the tenant is a private person, you pay tax advances quarterly.
Letting a flat bought with an Otthon Start loan is tightly restricted: according to OTP Bank's 2026 product information, occupancy by a third party is only allowed under specific lease types, otherwise the subsidy must be repaid. In September 2026 the government also signalled that it will reshape the scheme to filter out investment use.
If you need help with management too, our sister company Rentify specialises in long- and mid-term letting. On the investment side, our investment advisory page explains how we work. We describe the tenant profile of each area in more detail in our district guide.
Frequently asked questions
What is a realistic net yield for a Budapest flat?
According to Global Property Guide data from August 2026, the average gross yield in Budapest was 4.84%, and net yields are typically 1.5 to 2 percentage points lower, so around 3%. Our own conservative example came out at 2.3%. The exact figure depends on the price, the flat's condition and empty months.
Is it still worth buying an investment flat in District VI?
For long-term letting, yes, if the price reflects it. Since the short-term ban, the number of flats for rent in the district has risen, so tenants have more choice, but well-kept, well-furnished flats still let quickly.
What happens in 2027 when the Budapest moratorium ends?
The moratorium blocks new short-term registrations until 31 December 2026. After that, district rules will decide, which is exactly why several districts are preparing their own decrees. Always check the current rules of the specific district before buying.
Should I buy a studio or a larger flat to let?
Yield data suggest that larger two- and three-bedroom flats perform no worse, and their tenants tend to stay longer. A studio is a cheaper entry point, but carries more risk of tenant turnover and empty months.
This article is general information, not investment, legal or tax advice.
Looking to buy or sell in Budapest?
In a 30-minute call we go through what you are looking for, your budget and which districts make sense. In English or Hungarian, with no obligation.
Book a call
Urbán Réka founded Monvero. She works with buyers and investors in Budapest, Dubai and on the Costa del Sol, from setting the budget to signing. This article is for general information; for advice on your own situation, get in touch.
