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The Hiroshima rental market offers attractive opportunities for both tenants and investors, with average studio rents ranging from ¥55,000 to ¥71,000 in central areas and rental yields reaching 4-5.5%.
As of September 2025, Hiroshima presents one of Japan's most affordable major city rental markets, with significantly lower costs than Tokyo or Osaka while maintaining stable demand from students, professionals, and families. Central neighborhoods like Naka and Minami command premium rents, while suburban areas offer excellent value for money.
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Hiroshima rental prices vary significantly by location and property type, with central areas commanding premiums of 20-30% over suburban locations.
Total rental costs including utilities and fees typically exceed base rent by 20-30%, making budgeting crucial for tenants and yield calculations important for investors.
| Property Type | Central Hiroshima (Monthly) | Suburban Areas (Monthly) |
|---|---|---|
| Studio Apartment | ¥55,000 - ¥71,000 | ¥45,000 - ¥55,000 |
| 1-Bedroom Apartment | ¥71,000 - ¥78,000 | ¥60,000 - ¥70,000 |
| 2-Bedroom Apartment | ¥90,000 - ¥120,000 | ¥80,000 - ¥100,000 |
| Detached House | ¥85,000 | ¥70,000 - ¥80,000 |
| Rental Yield | 4.0% - 5.5% | 5.0% - 5.5% |
| Vacancy Rate | Low (High Demand) | Moderate |
| Target Tenants | Professionals, Expats | Families, Students |
What's the current average rent in Hiroshima across different neighborhoods?
Hiroshima rental prices vary significantly based on location, with central districts commanding substantial premiums over suburban areas.
In central Hiroshima neighborhoods like Naka and Minami, studio apartments rent for ¥55,000 to ¥71,000 monthly, while one-bedroom units range from ¥71,000 to ¥78,000. Two-bedroom apartments in these premium areas typically cost ¥90,000 to ¥120,000 per month.
Suburban and peripheral areas offer more affordable options, with studios available from ¥45,000 to ¥55,000 monthly. The Hiroshima Station vicinity also commands premium rents due to excellent transportation connections and proximity to business districts.
Areas near major universities attract student renters, creating consistent demand for smaller units in the ¥45,000 to ¥65,000 range. The central business district and entertainment areas maintain the highest rental rates due to their desirability among professionals and expats.
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How do rents differ between apartments, single-family homes, and commercial properties?
Property type significantly impacts rental rates in Hiroshima, with single-family homes generally commanding higher rents than comparable apartments.
Studio apartments represent the most affordable option at ¥55,000 to ¥71,000 in central areas, dropping to ¥45,000 to ¥55,000 in suburban locations. One-bedroom apartments follow at ¥71,000 to ¥78,000 centrally, while two-bedroom units reach ¥90,000 to ¥120,000 monthly.
Single-family detached houses average approximately ¥85,000 per month city-wide, with central locations commanding premiums and suburban houses renting for ¥70,000 to ¥80,000. These properties attract families seeking more space and privacy.
Commercial properties in newer office buildings and retail locations typically generate higher rental rates in central districts, though specific average rates are less commonly published. Commercial yields often match or exceed residential apartment yields.
The premium for central locations remains consistent across property types, with downtown areas commanding 20-30% higher rents than suburban equivalents.
What's the typical rent by size — studios, one-bedrooms, two-bedrooms, and larger units?
Rental rates in Hiroshima increase predictably with unit size, reflecting the practical needs of different tenant demographics.
Studios serve as entry-level housing for students and young professionals, renting for ¥55,000 to ¥71,000 in central areas. These compact units typically include basic amenities and suit individual occupants seeking affordability and convenience.
One-bedroom apartments, popular among working professionals and couples, command ¥71,000 to ¥78,000 monthly in prime locations. These units offer more living space and often include separate kitchen and bathroom areas.
Two-bedroom apartments cater to small families and professionals seeking home offices, with central locations renting for ¥90,000 to ¥120,000 monthly. The prefectural average for two-bedroom units sits around ¥97,000.
Larger units exceeding two bedrooms can surpass ¥120,000 monthly, depending on location and amenities. These properties typically target families or shared housing arrangements among professionals.
How much do renters usually pay in total once you add fees, maintenance costs, and utilities?
Total rental costs in Hiroshima typically exceed advertised base rent by 20-30% when including mandatory fees and utilities.
Management and repair fees add ¥300 to ¥400 per square meter monthly to base rent costs. For a typical 20-square-meter studio, this translates to an additional ¥6,000 to ¥8,000 monthly beyond the advertised rental rate.
Utility costs vary by unit size, with studios and one-bedroom apartments requiring ¥5,000 to ¥15,000 monthly for electricity, gas, and water. Two-bedroom units typically incur ¥15,000 to ¥25,000 monthly in utility expenses.
Additional charges including building insurance, cleaning fees, waste collection, and Wi-Fi services typically add another ¥10,000 to ¥20,000 monthly. These miscellaneous costs are often mandatory and non-negotiable.
Renters should budget for total monthly housing costs 20-30% above advertised rent to account for all mandatory fees and typical utility usage.
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What are the main taxes or property-related charges landlords should expect in Hiroshima?
Hiroshima landlords face multiple tax obligations that significantly impact investment returns and require careful financial planning.
Fixed Asset Tax represents the primary ongoing expense at 1.4% of assessed property value annually. City Planning Tax adds another 0.1% to 0.3% annually, varying by specific location within Hiroshima.
One-time costs include Real Estate Acquisition Tax at 4% of purchase price and Registration/License Tax ranging from 0.4% to 2% for ownership transfers. These upfront costs require substantial capital planning.
The new Hiroshima Accommodation Tax, effective autumn 2025, charges ¥100 to ¥500 per tourist stay for short-term rental properties. This tax specifically targets vacation rental operators and Airbnb hosts.
Rental income taxation varies dramatically by residency status, with Japanese residents paying 5% to 45% progressive rates while non-residents face a flat 20.42% rate. Property management fees typically consume 5% to 10% of gross rental income.
How do mortgage costs compare with average rental income in today's market?
Current Hiroshima mortgage rates make property investment highly attractive compared to rental income potential.
Variable mortgage rates range from 0.27% to 2.48%, while fixed-rate loans through Flat 35 programs reach up to 3.57%. These historically low rates significantly reduce borrowing costs for qualified investors.
Monthly mortgage payments for average Hiroshima apartments priced between ¥25 million and ¥50 million often compete favorably with equivalent rental rates. Payment amounts depend heavily on down payment size, loan terms, and borrower residency status.
Rental yields in central Hiroshima range from 4% to 5.5%, exceeding the national Japanese average of approximately 4.2%. This yield advantage helps offset mortgage payments and generates positive cash flow for well-purchased properties.
Low interest rates combined with stable rental demand create favorable conditions for leveraged property investment, though buyers must qualify for financing and navigate residency requirements.
What are the typical renter profiles — students, families, expats, or professionals — and what do they usually rent?
Hiroshima's diverse renter base creates distinct market segments with specific housing preferences and budgets.
Students represent a significant portion of the rental market, typically seeking studios or one-bedroom apartments near universities. They generally budget ¥45,000 to ¥65,000 monthly and prioritize affordability over luxury amenities.
Young professionals and couples prefer urban one-bedroom and two-bedroom apartments in central areas like Minami and Naka wards. They willingly pay premiums of ¥80,000 to ¥120,000 for convenient locations and modern amenities.
Families typically choose two to three-bedroom apartments ranging from ¥90,000 to ¥130,000 monthly, or detached houses costing ¥70,000 to ¥85,000. They prioritize space, school districts, and family-friendly neighborhoods.
Expatriate renters often select full-service apartments or detached houses, budgeting ¥80,000 to ¥120,000 monthly for properties with international-friendly features and English-speaking management support.
What are the current vacancy rates in Hiroshima, broken down by property type and area?
Hiroshima maintains relatively low vacancy rates, particularly in central urban areas with strong rental demand.
Short-term rental properties achieve median occupancy rates of 62% to 65%, with average daily rates of ¥11,291 and approximately 237 occupied nights annually. These figures reflect strong tourism demand in Hiroshima.
Long-term rental vacancy rates vary by location, with central areas experiencing tighter supply and correspondingly lower vacancy rates. Suburban areas typically show slightly higher vacancy levels due to increased housing supply.
National trends indicate vacancy rates peaked and began declining in 2025 due to stable rental demand combined with reduced new construction supply. This trend benefits existing property owners through improved occupancy and rental stability.
Urban areas near transportation hubs, universities, and business districts maintain the lowest vacancy rates, while peripheral residential areas experience moderate vacancy levels that still support viable rental investments.
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What are the average yields right now, and how do they differ across neighborhoods and property categories?
Hiroshima rental yields remain attractive compared to other major Japanese cities, with significant variation by location and property type.
Central Hiroshima properties generate rental yields of 4% to 5.5%, reflecting strong demand and stable rental rates in prime locations. These yields exceed Japan's national average of approximately 4.2%.
Suburban properties often achieve slightly higher yields around 5.0% due to lower purchase prices, though they may experience less rental stability and slower appreciation than central properties.
Commercial properties deliver similar yield ranges and sometimes achieve 5.5% to 8% for new retail projects in prime locations. However, commercial properties require larger initial investments and specialized management expertise.
Short-term rental properties through platforms like Airbnb report median 15% year-over-year income increases, though these require active management and face regulatory considerations including the new accommodation tax.
How have both rents and yields changed compared with one year ago and five years ago?
Hiroshima rental market performance shows steady appreciation with moderate growth rates compared to Japan's largest metropolitan areas.
Over the past year, central Hiroshima apartment rents increased approximately 9%, reflecting strong local demand and limited new supply. This growth rate indicates healthy market fundamentals without speculative overheating.
Five-year trends reveal steady moderate appreciation in both rental rates and property values, though growth rates remain below those of Tokyo and Osaka markets. This pattern suggests sustainable, long-term market development.
Rental yields have remained stable or shown slight increases over the five-year period, as rental growth has generally matched or slightly exceeded property price appreciation. This stability appeals to income-focused investors.
The consistent growth pattern reflects Hiroshima's economic stability, population retention, and growing appeal as an affordable alternative to Japan's most expensive metropolitan areas.
What's the forecast for rents and yields in Hiroshima over the next 1, 5, and 10 years?
Hiroshima rental market forecasts suggest continued steady growth driven by economic development and urban redevelopment projects.
Over the next one to five years, rental rates are expected to experience steady modest growth, particularly in central districts. Tourism recovery, job creation, and ongoing redevelopment projects should support rental demand and moderate price appreciation.
Rental yields may experience slight compression as property values appreciate, but should remain stable compared to other major Japanese cities. Central areas will likely outperform suburban locations due to sustained demand from professionals and students.
Ten-year projections suggest Hiroshima will maintain its position as an affordable major city with moderate rental demand, provided population and economic fundamentals remain stable. Premium central areas should continue outperforming peripheral locations.
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How does Hiroshima compare to other similar-sized Japanese cities in terms of rent levels, yields, and investor opportunities?
| City | Average 1BR Rent | Average House Rent | Average Yield | Investment Appeal |
|---|---|---|---|---|
| Hiroshima | ¥71,000 - ¥78,000 | ¥85,000 | 4.0% - 5.5% | High value, strong yields |
| Fukuoka | ¥70,000 - ¥80,000 | ¥138,000 | ~4.2% | Higher rents, steady growth |
| Kobe | ¥80,000 - ¥110,000 | ¥103,000 | ~4.0% | More expensive, urban yields |
| Sapporo | ¥60,000 - ¥70,000 | ¥72,000 | ~4.0% | Lower costs, strong demand |
| Nagoya | ¥75,000 - ¥85,000 | ¥131,000 | ~4.0% | Industrial growth potential |
Hiroshima offers superior value and higher rental yields compared to most similar-sized Japanese cities, making it attractive for both budget-conscious tenants and yield-seeking investors.
Compared to Fukuoka, Hiroshima provides similar apartment rents but significantly lower house rental costs, creating opportunities for family-oriented rental investments. Fukuoka's larger metropolitan area drives higher overall rental rates.
Kobe commands premium rents due to its proximity to Osaka, but delivers lower yields than Hiroshima while requiring higher initial investments. Sapporo offers the lowest rental rates but maintains strong tenant demand.
Nagoya's industrial base supports steady rental demand and moderate yields, though housing costs exceed Hiroshima levels. Overall, Hiroshima provides an optimal balance of affordability, yield potential, and market stability.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Hiroshima continues to demonstrate why it ranks among Japan's most attractive secondary real estate markets for both tenants and investors.
With rental yields exceeding national averages and affordable entry points compared to Tokyo or Osaka, the city offers sustainable investment opportunities backed by steady economic fundamentals and growing appeal as a livable urban center.
Sources
- Hiroshima Real Estate Market Analysis
- Average Rent for Apartments in Japan by Prefecture
- Cost of Living in Hiroshima
- Japan's 2025 Single Family Detached Home Rental Market
- Hiroshima Property Investment Guide
- Japan Property Investment Blog
- Average Rent in Japan Analysis
- Japan Rental Yields Guide
- Annual Airbnb Revenue in Hiroshima
- Japan Real Estate Trends