Short-Term or Long-Term Rentals: What Works Best in Los Cabos, Mexico for U.S. Investors
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
Should you rent short-term or long-term in Los Cabos? The 2026 numbers are closer than most investors think. The average Airbnb in Cabo San Lucas grossed about $29,400 a year at 31% occupancy, while a 3-bedroom in the center of Cabo San Lucas rents long-term for about $2,490 a month, or roughly $29,900 a year. Short-term can earn much more for the right home, but it comes with cleaning, management and platform costs, and revenue fell 8–11% in the last year. This guide compares both with real data for investors from California, Texas and Arizona.
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| $29.4K Avg. Airbnb gross per year, Cabo San Lucas |
31% Avg. Airbnb occupancy |
| $2,490 Monthly long-term rent, 3-bedroom, CSL center |
$10K+ Monthly long-term rent, a large home we leased in Puerto Los Cabos |
| Factor | Short-Term (Airbnb, Vrbo) | Long-Term Lease |
|---|---|---|
| Average gross income | ~$29,400/yr in Cabo San Lucas, ~$27,300/yr in San José del Cabo | ~$14,200/yr (1-bedroom) to ~$29,900/yr (3-bedroom) in central Cabo San Lucas |
| Costs out of that income | Cleaning, management, utilities, furnishing, platform fees | Usually the tenant pays utilities; less management |
| Income swings | High: strong in winter and spring, slow in late summer | Steady monthly rent |
| Personal use | You can block dates and use your home | Not while it’s leased |
| HOA rules | Some communities limit or ban short stays | Usually allowed |
| Taxes | ISR and IVA withheld by platforms, plus 4% BCS lodging tax | ISR; unfurnished residential leases are generally IVA-exempt |
Long-term figures from Numbeo (October 2026); short-term figures from AirROI (August 2025 to July 2026). These are market averages, not a comparison of the same property.
| Period | What Happens |
|---|---|
| February | Highest occupancy of the year |
| March | Highest revenue and nightly rates |
| July | Lowest occupancy |
| September | Lowest revenue (hot, humid, peak hurricane season) |
Some owners rent short-term in the high season (roughly November to April) and use the home themselves or offer a few months’ lease in the slow summer. It takes more planning, but it can smooth out the low months.
Before renting either way, read Legal Requirements for Renting Out Your Property in Los Cabos and Rental Income Tax for Foreigners in Los Cabos. For rental-friendly areas, see Top Airbnb Communities in Cabo San Lucas and Can You Rent or Do Airbnb in Puerto Los Cabos?
It depends on the home. On average, gross income is similar: about $29,400 a year for an Airbnb in Cabo San Lucas vs. about $29,900 for a 3-bedroom long-term lease. Short-term can earn more for premium homes, but has more costs and work.
About 31% in Cabo San Lucas and 32% in San José del Cabo (AirROI, August 2025 to July 2026).
About $1,180 a month for a 1-bedroom and $2,490 for a 3-bedroom in the center, per Numbeo (October 2026). Large luxury homes rent for much more; one home we leased in Puerto Los Cabos rents for over $10,000 a month.
February has the highest occupancy and March the highest revenue. July and September are the slowest.
Yes. Many owners switch depending on the market, their own use and HOA rules.
We help investors from California, Texas and Arizona choose the right property and rental strategy, short-term or long-term.
Sources: AirROI, Cabo San Lucas and San José del Cabo Airbnb market reports (Aug 2025 – Jul 2026); Numbeo, Cost of Living in Cabo San Lucas (Oct 2026); Karla & Erick | Cabo Realty long-term lease in Puerto Los Cabos. Information verified October 2026.
Disclaimer: Figures are market averages and not a guarantee of income. Results depend on the property, location, management and HOA rules. This is not tax or legal advice. Karla & Erick are MLS members with Century 21 Paradise Properties.
Karla & Erick | Cabo Realty | Century 21 Paradise Properties
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