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Daejeon sits at the heart of South Korea's science and research corridor, making it a unique rental market driven by universities, tech clusters, and government offices rather than pure tourism.
This guide covers everything a foreign investor needs to know about buying residential property in Daejeon specifically to rent it out, from legal requirements to realistic yield expectations.
We constantly update this blog post to reflect the latest regulations, market data, and practical insights for foreign landlords in Daejeon.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Daejeon.
Insights
- Daejeon sits outside the Seoul-metro "foreigner land transaction permit zones" that were designated in August 2025, meaning foreign buyers face simpler acquisition procedures than in the capital region.
- Short-term rental occupancy in Daejeon averages around 50% to 58%, with annual revenues near 15 million won, which is lower than Seoul or Busan due to limited tourism demand.
- Gross rental yields in Daejeon typically range from 2.0% to 3.5%, but net yields after costs drop to roughly 1.0% to 2.3% once you factor in management, vacancy, and compliance expenses.
- Airbnb began fully enforcing business registration requirements in Korea in 2025, meaning unlicensed short-term rentals in Daejeon risk platform removal regardless of local enforcement.
- The Yuseong district near KAIST and Daedeok Innopolis generates steady demand from researchers and graduate students, making it one of Daejeon's most reliable long-term rental areas.
- Korea's tenant protection law caps renewal rent increases at 5% and grants tenants a "2+2 year" renewal right, which limits landlord flexibility but also reduces turnover costs.
- Monthly rent structures (wolse) are becoming more common nationwide, with transactions exceeding one million units in 2025, which benefits foreign landlords who prefer cash flow over large deposits.
- Furnished apartments in Daejeon can command a 10% to 20% rent premium, particularly near university areas where short-stay researchers and visiting professors drive demand.
Can I legally rent out a property in Daejeon as a foreigner right now?
Can a foreigner own-and-rent a residential property in Daejeon in 2026?
As of early 2026, foreigners can legally purchase and rent out residential property in Daejeon without requiring government approval, since Daejeon falls outside the special "foreigner land transaction permit zones" that apply to the Seoul metropolitan area.
Most foreign investors in Daejeon hold property directly in their own name after completing the standard acquisition reporting process, though some choose to establish a Korean corporation if they plan to scale their portfolio.
The main limitation foreigners face is not ownership itself but the paperwork burden: you must report your acquisition to the local district office within 60 days and register with the tax authority to comply with rental income obligations.
If you're not a local, you might want to read our guide to foreign property ownership in Daejeon.
Do I need residency to rent out in Daejeon right now?
You do not need Korean residency to own and rent out property in Daejeon, though non-resident owners typically need to establish a local "execution stack" of professionals to handle tenant relations and compliance.
A Korean tax identification number is effectively required to report rental income properly, and the National Tax Service expects foreign landlords to file or designate a tax agent for Korea-source income.
While no law strictly mandates a Korean bank account, collecting rent without one is extremely difficult because tenants and property managers overwhelmingly use domestic bank transfers.
Remote management from abroad is feasible if you hire a licensed realtor for tenant placement and a local property manager for maintenance, though Korea's paperwork-heavy system and tenant protections mean hands-off ownership requires more professional support than in many Western markets.
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What rental strategy makes the most money in Daejeon in 2026?
Is long-term renting more profitable than short-term in Daejeon in 2026?
As of early 2026, long-term renting is generally the simpler and steadier strategy in Daejeon because the city's rental demand comes primarily from universities, research institutes, and government workers rather than tourists.
A well-managed long-term rental in Daejeon might generate around 6 to 8 million won per year (roughly $4,200 to $5,600 USD or 3,900 to 5,200 EUR) in net income, while a short-term rental could theoretically gross 15 million won ($10,500 USD / 9,700 EUR) but faces higher costs, licensing hurdles, and inconsistent occupancy.
Short-term rentals tend to perform best in central Yuseong near conference venues and research parks, where business travelers create spikes in demand during academic conferences and industry events.
What's the average gross rental yield in Daejeon in 2026?
As of early 2026, the average gross rental yield for residential properties in Daejeon falls between 2.0% and 3.5%, which is modest by global standards but typical for Korean cities outside Seoul.
Most residential properties in Daejeon achieve gross yields in the 1.8% to 4.0% range, with the lower end representing premium apartments in Dunsan and the higher end representing older units in less central locations.
Studios and small officetels near university areas like Yuseong-gu tend to achieve the highest gross yields in Daejeon because their lower purchase prices relative to rent attract student and researcher demand.
By the way, we have much more granular data about rental yields in our property pack about Daejeon.
What's the realistic net rental yield after costs in Daejeon in 2026?
As of early 2026, the realistic net rental yield after all costs for residential properties in Daejeon typically falls between 1.0% and 2.3%, which reflects Korea's relatively high transaction and compliance costs.
Most landlords in Daejeon experience net yields in the 0.8% to 2.5% range depending on their management approach, property age, and how efficiently they handle turnover.
The three main cost categories that reduce gross yield to net yield in Daejeon are building maintenance fees (gwanlibi) which can run 100,000 to 300,000 won monthly, brokerage fees for re-leasing that typically equal one month's rent, and the administrative burden of tax-compliant reporting through NTS which often requires paid professional help for foreign owners.
You might want to check our latest analysis about gross and net rental yields in Daejeon.
What monthly rent can I get in Daejeon in 2026?
As of early 2026, typical monthly rents in Daejeon run around 350,000 to 550,000 won ($245 to $385 USD / 225 to 355 EUR) for a studio, 450,000 to 700,000 won ($315 to $490 USD / 290 to 450 EUR) for a 1-bedroom, and 650,000 to 1,000,000 won ($455 to $700 USD / 420 to 645 EUR) for a 2-bedroom, assuming a standard deposit structure.
A realistic entry-level monthly rent for a decent studio in Daejeon starts around 300,000 to 400,000 won ($210 to $280 USD / 195 to 260 EUR), typically in older buildings or slightly peripheral locations.
A typical 1-bedroom apartment in a reasonable Daejeon neighborhood commands 500,000 to 650,000 won ($350 to $455 USD / 320 to 420 EUR) per month, with proximity to Dunsan or Yuseong pushing toward the higher end.
A standard 2-bedroom apartment in Daejeon's mid-to-high segment rents for 750,000 to 950,000 won ($525 to $665 USD / 485 to 615 EUR) monthly, with newer buildings near schools and transit commanding premiums.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Daejeon.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in South Korea versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Daejeon in 2026?
What's the total "all-in" monthly cost to hold a rental in Daejeon in 2026?
As of early 2026, the total all-in monthly cost to hold and maintain a typical rental property in Daejeon runs between 150,000 and 350,000 won ($105 to $245 USD / 95 to 225 EUR) for local self-managers, or 200,000 to 400,000 won ($140 to $280 USD / 130 to 260 EUR) for foreign owners managing remotely.
A realistic monthly cost range that covers most standard rental properties in Daejeon falls between 120,000 and 400,000 won ($85 to $280 USD / 80 to 260 EUR), depending on building age, management approach, and how you amortize periodic expenses like brokerage fees.
The single largest contributor to monthly holding costs in Daejeon is typically the building maintenance fee (gwanlibi), which averages 100,000 to 250,000 won monthly and covers common area upkeep, security, and shared utilities that cannot be fully passed to tenants.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Daejeon.
What's the typical vacancy rate in Daejeon in 2026?
As of early 2026, the typical vacancy rate for well-located rental properties in Daejeon hovers around 5% to 10%, which translates to roughly two to five weeks of vacancy per year under normal conditions.
Landlords in Daejeon should realistically budget for about one month of vacancy per year (roughly 8%) as a conservative underwriting assumption, since even stable markets experience turnover between tenants and occasional slower leasing periods.
The main factor causing vacancy rates to vary across Daejeon neighborhoods is proximity to anchor institutions: properties near KAIST, Chungnam National University, or the Dunsan government complex lease faster than those in purely residential suburbs without major employment or education centers nearby.
Tenant turnover in Daejeon peaks around February and August, aligning with Korea's academic calendar when students graduate, new semesters begin, and researchers rotate through institutions like KAIST and Daedeok Innopolis.
We have a whole part covering the best rental strategies in our pack about buying a property in Daejeon.
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Where do rentals perform best in Daejeon in 2026?
Which neighborhoods have the highest long-term demand in Daejeon in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Daejeon are Dunsan-dong in Seo-gu for its central amenities and offices, Gung-dong in Yuseong-gu for its proximity to KAIST and research parks, and Wolpyeong-dong in Seo-gu for its balance of family appeal and transit access.
Families in Daejeon gravitate toward Wolpyeong-dong, Dunsan-dong, and the newer Doan-dong development area, all of which offer reputable schools, parks, and larger apartment options suited to households with children.
Students in Daejeon concentrate around Gung-dong, Eoeun-dong, and Bongmyeong-dong in Yuseong-gu, all within walking or short commuting distance of KAIST, Chungnam National University, and the surrounding academic ecosystem.
Expats and international professionals in Daejeon typically seek housing in central Yuseong near research parks or in Dunsan's convenience-oriented core, both offering easier access to English-friendly services and international-standard amenities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Daejeon.
Which neighborhoods have the best yield in Daejeon in 2026?
As of early 2026, the neighborhoods offering the best rental yields in Daejeon tend to be the outer edges of Yuseong-gu still connected to research clusters, parts of Seo-gu one step removed from premium Dunsan pricing, and select pockets of Jung-gu near transit hubs.
These top-yielding neighborhoods in Daejeon typically achieve gross rental yields in the 3.0% to 4.0% range, compared to the 2.0% to 2.5% more common in premium Dunsan addresses.
The main characteristic allowing these neighborhoods to achieve higher yields is that purchase prices drop faster than rents as you move away from Daejeon's most prestigious addresses, so investors capture nearly the same rental income at a significantly lower capital outlay.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Daejeon.
Where do tenants pay the highest rents in Daejeon in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Daejeon are central Dunsan-dong for premium lifestyle apartments, prime Yuseong-gu pockets near KAIST for researcher housing, and parts of Wolpyeong-dong with newer high-rise developments.
A standard apartment in these premium Daejeon neighborhoods typically rents for 800,000 to 1,200,000 won ($560 to $840 USD / 515 to 775 EUR) per month, with luxury units and larger family apartments pushing even higher.
These neighborhoods command Daejeon's highest rents because they combine walkable access to offices, transit, and schools with newer building stock and the "address prestige" that Korean renters value when choosing where to live.
The typical tenant profile in these highest-rent Daejeon neighborhoods includes senior researchers at government-funded institutes, mid-career professionals working in Dunsan's office district, and families who prioritize school districts and are willing to pay for convenience.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of South Korea. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Daejeon in 2026?
What features increase rent the most in Daejeon in 2026?
As of early 2026, the three property features that increase monthly rent the most in Daejeon are dedicated parking spaces (essential in a car-dependent city), modern heating systems like individual boilers (highly valued during cold winters), and proximity to subway Line 1 stations (since Daejeon's transit coverage is limited compared to Seoul).
A dedicated parking space in Daejeon can add roughly 5% to 10% to monthly rent because the city's urban layout and limited public transit make car ownership nearly universal among working professionals and families.
One commonly overrated feature that landlords invest in but tenants rarely pay extra for in Daejeon is luxury kitchen finishes, since most Korean renters eat out frequently or use delivery services and place less value on high-end cooking spaces.
One affordable upgrade offering strong return on investment in Daejeon is installing a modern digital door lock, which costs under 300,000 won but signals a well-maintained property and appeals to the security-conscious researcher and student demographic.
Do furnished rentals rent faster in Daejeon in 2026?
As of early 2026, furnished apartments in Daejeon typically rent about one to two weeks faster than unfurnished ones, particularly in Yuseong-gu where visiting researchers and international students often need move-in-ready housing for temporary assignments.
Furnished apartments in Daejeon generally command a rent premium of 10% to 20% over comparable unfurnished units, with the higher end of that range applying to fully equipped properties near KAIST or research institutes catering to short-stay professionals.
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How regulated is long-term renting in Daejeon right now?
Can I freely set rent prices in Daejeon right now?
Landlords in Daejeon can freely set the initial rent price when signing a new lease with a tenant, as Korea does not impose rent control on first-time lease agreements.
However, rent increases during a tenancy or upon renewal are capped at 5% under Korea's tenant protection law, and tenants have the right to request a single two-year renewal (creating the "2+2 year" structure), which limits how quickly landlords can adjust rents to market rates.
What's the standard lease length in Daejeon right now?
The standard lease length for residential rentals in Daejeon is two years, which is the legally protected minimum under Korea's Housing Lease Protection Act, though landlords and tenants can agree to longer terms if both parties prefer.
Security deposits in Daejeon vary widely depending on the lease structure, but for monthly rent (wolse) arrangements, landlords typically require deposits ranging from 5 million to 50 million won ($3,500 to $35,000 USD / 3,200 to 32,300 EUR), often equivalent to 10 to 20 months of rent.
At the end of a tenancy in Daejeon, landlords must return the security deposit in full when the tenant vacates unless there are documented damages or unpaid rent, and disputes over deposit returns can be mediated through Korea's formal housing lease dispute resolution system.
We made this infographic to show you how property prices in South Korea compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Daejeon in 2026?
Is Airbnb legal in Daejeon right now?
Airbnb-style short-term rentals are legal in Daejeon but require proper business registration under Korea's Tourism Promotion Act, which defines specific accommodation categories like "foreign tourist urban lodging" that hosts must register under.
To operate a short-term rental legally in Daejeon, you need to register your property with the local district office and obtain a tourism business license, a process that involves meeting safety and facility standards.
Korea does not impose a specific annual night limit on short-term rentals like some European cities do, but the registration and compliance requirements effectively regulate the market by requiring hosts to operate as formal businesses.
The most common penalty for operating an unlicensed short-term rental in Daejeon is platform removal, as Airbnb began fully enforcing business registration requirements in Korea in August 2025, meaning non-compliant listings are delisted regardless of local enforcement.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Daejeon.
What's the average short-term occupancy in Daejeon in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Daejeon falls between 50% and 58%, which is lower than tourist-heavy cities like Seoul or Busan but consistent with Daejeon's business-travel-focused demand.
Most short-term rentals in Daejeon experience occupancy rates ranging from 40% at the low end for poorly positioned listings to around 65% for well-optimized properties near conference venues and research institutions.
The highest occupancy months for short-term rentals in Daejeon are typically spring (April to May) and fall (September to October), when academic conferences, government meetings, and research institute events cluster together.
The lowest occupancy periods in Daejeon fall during the winter months (December to February) and the summer vacation period (late July to mid-August), when university activity drops and business travel slows significantly.
Finally, please note that you can find much more granular data about this topic in our property pack about Daejeon.
What's the average nightly rate in Daejeon in 2026?
As of early 2026, the average nightly rate for short-term rentals in Daejeon is approximately 70,000 to 75,000 won ($49 to $52 USD / 45 to 48 EUR), reflecting the city's position as a mid-tier STR market focused on domestic business travelers rather than international tourists.
A realistic nightly rate range covering most short-term rental listings in Daejeon spans from about 50,000 won ($35 USD / 32 EUR) for basic studios to 120,000 won ($84 USD / 78 EUR) for larger or better-located apartments.
The typical nightly rate difference between peak season and off-season in Daejeon is around 15,000 to 25,000 won ($10 to $17 USD / 10 to 16 EUR), with rates climbing during major conferences in Yuseong and dropping during university break periods.
Is short-term rental supply saturated in Daejeon in 2026?
As of early 2026, the short-term rental market in Daejeon shows moderate saturation, with around 1,600 active listings competing for a demand pool that is smaller and more seasonal than in major tourist destinations.
The number of active STR listings in Daejeon has been relatively stable over the past year, with Airbnb's business registration enforcement likely reducing the count of casual or non-compliant hosts while professional operators remain.
The most oversaturated neighborhoods for short-term rentals in Daejeon are central Yuseong near KAIST and parts of Dunsan, where multiple hosts compete for the same conference and business traveler demand.
Neighborhoods in Daejeon that still have room for new short-term rental supply include the edges of Yuseong-gu closer to Daedeok Innopolis (where researcher housing demand exists but STR supply is thin) and areas near the KTX station that serve transit-oriented travelers.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Daejeon, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Tourism Promotion Act (law.go.kr) | Official Korean government legal database publishing actual statutes. | We used it to verify the legal framework for short-term rental accommodation types. We anchored STR licensing requirements in this statutory foundation. |
| Seoul Metropolitan Government | Official city government guide for foreigner property procedures. | We used it for plain-English acquisition steps that generalize to Daejeon. We relied on it to explain reporting deadlines and registration concepts. |
| Kim & Chang Law Firm | Top-tier Korean law firm providing legally precise client summaries. | We used it to confirm which areas were designated as foreigner permit zones. We verified that Daejeon falls outside these special restrictions. |
| Korea Real Estate Board | Government-affiliated institution for official housing statistics. | We used it to anchor rental yield and price index references. We relied on REB data for rent trend validation across Korean cities. |
| KOSIS (Statistics Korea) | Official national statistics portal for demographic and housing data. | We used it to understand Daejeon's demand drivers and tenant demographics. We triangulated vacancy and turnover patterns against official data. |
| National Tax Service | Official Korean tax authority for compliance guidance. | We used it to anchor tax identification and rental income reporting requirements. We verified foreigner landlord obligations through NTS guidance. |
| Housing Lease Protection Act | Official statute governing tenant rights and lease structures. | We used it to ground tenant protection rules like the 5% renewal cap. We explained lease lengths and deposit rules based on this law. |
| AirDNA | Widely used STR analytics provider with transparent market dashboards. | We used it to estimate Daejeon short-term occupancy and revenue benchmarks. We analyzed supply saturation using their listing count data. |
| Airbtics | Recognized STR data vendor with published methodology notes. | We used it as a second STR datapoint to cross-check AirDNA figures. We validated occupancy and ADR estimates through their Daejeon snapshot. |
| Korea Times | Major national newspaper providing current enforcement reporting. | We used it to confirm Airbnb's business registration enforcement timeline. We documented the practical consequences of non-compliance. |
We have made this infographic to give you a quick and clear snapshot of the property market in South Korea. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
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