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If you are a foreigner thinking about buying a residential property in Hiroshima to rent it out, this guide covers everything you need to know about rental yields, tenant demand, legal requirements, and neighborhood performance in early 2026.
We constantly update this blog post with the latest data from official Japanese sources and rental market platforms so you always have current information at your fingertips.
Whether you want to do long-term rentals or explore short-term options like Airbnb, this article will help you understand what realistic returns look like in Hiroshima's rental market.
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 Hiroshima.
Insights
- Hiroshima Prefecture has a 15.8% vacant housing rate as of October 2023, which means landlords face real competition for tenants and must price competitively to avoid long vacancies.
- The rent gap between central Hiroshima wards and outer wards is massive: a 2LDK in Naka-ku rents for around 123,000 yen while the same layout in Asakita-ku fetches only 52,000 yen.
- Short-term rental occupancy in downtown Hiroshima (Naka-ku) reaches about 60%, but the 180-night annual cap under Japan's minpaku law limits your earning potential even in high-demand areas.
- Non-resident foreign landlords face a 20.42% withholding tax on rental income in Hiroshima, though this does not apply if your tenant is an individual renting the property as their personal residence.
- Student rental demand in Hiroshima concentrates in Higashihiroshima near Hiroshima University, not in central Hiroshima City, which catches many foreign investors off guard.
- The best yield zones in Hiroshima are not downtown but commuter-friendly wards like Nishi-ku (Yokogawa area) and Asaminami-ku where purchase prices are lower but rents remain healthy.
- Average daily rates for Hiroshima short-term rentals hover around 11,400 yen in Naka-ku, but after platform fees, cleaning costs, and management fees of 15-25%, net returns often match or barely beat long-term rentals.
- Japan's lease law does not allow landlords to raise rent freely during a tenancy; increases require negotiation and can be formally disputed by tenants if deemed unreasonable.
Can I legally rent out a property in Hiroshima as a foreigner right now?
Can a foreigner own-and-rent a residential property in Hiroshima in 2026?
As of early 2026, foreigners can legally buy and rent out residential property in Hiroshima because Japan has no nationality-based restrictions on property ownership, making it one of the most open real estate markets in Asia for foreign investors.
The most common ownership structure for foreigners holding rental property in Hiroshima is direct personal ownership, though some investors use a Japanese limited company (godo kaisha or kabushiki kaisha) if they plan to scale or want certain tax advantages.
The biggest practical limitation is not a legal ban but the operational reality: as a non-resident foreigner, you will almost certainly need a local property management company to handle tenant screening, rent collection, and maintenance because doing this remotely without local support is extremely difficult.
If you're not a local, you might want to read our guide to foreign property ownership in Hiroshima.
Do I need residency to rent out in Hiroshima right now?
You do not need to be a Japanese resident to own and rent out property in Hiroshima, but being a non-resident triggers different tax withholding rules and administrative requirements that you must handle properly.
While you do not need a personal Japanese tax identification number to be a landlord, your tenant or property manager may be required to withhold 20.42% of your rental income and remit it to Japanese tax authorities if you qualify as a non-resident under Japan's tax rules.
A local Japanese bank account is not legally required to collect rent, but it makes everything smoother because most property managers prefer to deposit rent domestically, and you can then arrange international transfers from that account.
Managing a Hiroshima rental entirely remotely is feasible and quite common among overseas owners, but success depends heavily on having a reliable local property management company that handles leasing, maintenance, tenant communication, and rent collection on your behalf.
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What rental strategy makes the most money in Hiroshima in 2026?
Is long-term renting more profitable than short-term in Hiroshima in 2026?
As of early 2026, long-term renting is generally the safer and more predictable strategy in Hiroshima, while short-term rentals can generate higher gross revenue in prime downtown locations but come with significantly higher operating costs and the 180-night annual cap under Japan's minpaku law.
For a typical 1LDK apartment in central Hiroshima, a long-term rental might generate around 80,000 yen per month (roughly $530 or €500), while a well-managed short-term rental in Naka-ku could theoretically gross 150,000 to 200,000 yen monthly, but after platform fees of 15%, cleaning, utilities, furnishing costs, and management fees of 15-25%, the net difference often shrinks to 10-20% at best.
Short-term renting financially outperforms long-term mainly in highly walkable downtown areas like Hatchobori, Kamiya-cho, and near Hiroshima Station where tourist foot traffic is strong and occupancy can consistently reach 55-65%.
What's the average gross rental yield in Hiroshima in 2026?
As of early 2026, the average gross rental yield for residential properties in Hiroshima City ranges from about 3.5% to 5.0%, with significant variation depending on which ward you buy in and what property type you choose.
The realistic range across most Hiroshima residential properties spans from around 3.0% in expensive central wards like Naka-ku to 5.5% or slightly higher in commuter-friendly outer wards where purchase prices are meaningfully lower but rents remain decent.
Studio and 1K apartments typically achieve the highest gross rental yields in Hiroshima because they have the lowest purchase prices relative to rent, making them popular with yield-focused investors targeting young professionals and single renters.
By the way, we have much more granular data about rental yields in our property pack about Hiroshima.
What's the realistic net rental yield after costs in Hiroshima in 2026?
As of early 2026, the realistic net rental yield after ongoing costs in Hiroshima typically falls between 2.3% and 3.6% for most standard residential properties, though well-executed investments in good locations can reach 3.5% to 4.2%.
Most Hiroshima landlords experience net yields in the 2.0% to 4.0% range, with the lower end hitting investors who face unexpected repairs on older buildings or struggle with vacancy in less desirable locations.
The three main cost categories that compress gross yield to net yield in Hiroshima are property taxes (fixed asset tax at 1.4% plus city planning tax at 0.3% of assessed value), building management and repair reserve fees for condos (often 15,000 to 30,000 yen monthly), and property management fees if you use a company (typically around 5% of monthly rent for long-term rentals).
You might want to check our latest analysis about gross and net rental yields in Hiroshima.
What monthly rent can I get in Hiroshima in 2026?
As of early 2026, typical monthly rents in Hiroshima City are around 50,000 yen ($330/€310) for a studio or 1K, approximately 75,000 yen ($500/€470) for a 1LDK (one-bedroom), and roughly 95,000 yen ($630/€595) for a 2LDK (two-bedroom), though these vary significantly by ward.
A decent entry-level studio in Hiroshima rents for about 32,500 to 50,000 yen per month ($215-$330 or €200-€310), with the lower end in outer wards like Asakita-ku and the higher end in more central or convenient locations.
A typical mid-range 1LDK apartment in Hiroshima fetches around 60,000 to 82,000 yen monthly ($400-$545 or €375-€510), depending on whether you are in an outer ward like Saeki-ku or a central ward like Naka-ku.
For a standard 2LDK apartment, expect monthly rents of 90,000 to 126,000 yen ($600-$840 or €565-€790), with the highest rents in Minami-ku near Hiroshima Station and Naka-ku downtown, and the lowest in residential outer wards.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Hiroshima.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Japan 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 Hiroshima in 2026?
What's the total "all-in" monthly cost to hold a rental in Hiroshima in 2026?
As of early 2026, the total monthly holding cost for a typical rental condo in Hiroshima runs between 25,000 and 55,000 yen ($165-$365 or €155-€345) for a studio or 1K, rising to 30,000 to 65,000 yen ($200-$430 or €190-€405) for a 2LDK, excluding any mortgage payments.
The realistic range for most standard Hiroshima rental properties is 25,000 to 65,000 yen monthly ($165-$430 or €155-€405), with older buildings and larger units pushing toward the higher end due to larger repair reserves and higher property taxes.
The single largest monthly cost contributor in Hiroshima is usually the building management fee plus repair reserve fund (called kanrihi and shuzenhi), which can easily run 15,000 to 30,000 yen per month for a typical condo and sometimes higher for older buildings with upcoming major repairs.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Hiroshima.
What's the typical vacancy rate in Hiroshima in 2026?
As of early 2026, the macro housing vacancy rate in Hiroshima Prefecture stands at 15.8% according to the official Housing and Land Survey from October 2023, which signals meaningful market slack that landlords must account for when budgeting.
For a well-priced, well-located long-term rental in Hiroshima City, you should realistically budget for 0.5 to 1.5 months of vacancy per year, though poorly positioned units or those in weak-demand outer wards may face 2 to 3 months of vacancy annually.
The main factor driving vacancy differences across Hiroshima neighborhoods is proximity to transit and employment centers, with areas near streetcar lines, Hiroshima Station, and downtown consistently filling faster than car-dependent outer wards.
Tenant turnover in Hiroshima typically peaks in March and April, coinciding with Japan's academic and corporate calendar when students graduate and company employees transfer, so landlords often face the highest vacancy risk during this spring moving season.
We have a whole part covering the best rental strategies in our pack about buying a property in Hiroshima.
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Where do rentals perform best in Hiroshima in 2026?
Which neighborhoods have the highest long-term demand in Hiroshima in 2026?
As of early 2026, the three neighborhoods with the strongest overall long-term rental demand in Hiroshima are Naka-ku (especially Hatchobori, Kamiya-cho, and Fukuro-machi downtown), the area around Hiroshima Station in Minami-ku (Matoba-cho), and Yokogawa in Nishi-ku which offers excellent transit connections at more affordable price points.
Families in Hiroshima tend to concentrate their rental demand in Asaminami-ku (particularly Gion, Nakasuji, and Nishihara) and Saeki-ku (Itsukaichi and Rakurakuen), where they find more space, good schools, and a calmer environment while still having reasonable commute options to central Hiroshima.
Student rental demand in Hiroshima is concentrated not in the city center but in Higashihiroshima (Saijo and Kagamiyama areas) because Hiroshima University's main campus is located there, which is a detail that catches many foreign investors off guard when they assume students rent downtown.
Expats and international professionals in Hiroshima prefer central Naka-ku near Peace Memorial Park for walkability and dining options, or the Hiroshima Station area in Minami-ku for transit convenience, and they often seek furnished apartments which are relatively rare in the traditional Japanese long-term rental market.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Hiroshima.
Which neighborhoods have the best yield in Hiroshima in 2026?
As of early 2026, the three neighborhoods offering the best rental yields in Hiroshima are Nishi-ku (particularly the Yokogawa area), Asaminami-ku (commuter corridors like Gion and Nakasuji), and parts of Saeki-ku where purchase prices are noticeably lower than downtown but rents remain solid due to decent demand.
These higher-yielding Hiroshima neighborhoods typically deliver gross rental yields in the 4.5% to 5.5% range, compared to 3.0% to 4.0% in premium central wards like Naka-ku where purchase prices are elevated.
The main characteristic allowing these neighborhoods to achieve higher yields is that they sit on strong transit corridors (streetcar lines, JR stations) which maintains tenant demand, while their property prices have not inflated as much as downtown because they lack the "prestige address" premium that compresses yields in Naka-ku.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Hiroshima.
Where do tenants pay the highest rents in Hiroshima in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Hiroshima are Minami-ku near Hiroshima Station (averaging around 126,000 yen or $840/€790 for a 2LDK), Naka-ku downtown (around 123,000 yen or $820/€770 for a 2LDK), and Higashi-ku which also commands premium rents due to good accessibility.
In these premium Hiroshima neighborhoods, a standard 1LDK apartment typically rents for 75,000 to 85,000 yen monthly ($500-$565 or €470-€530), while a 2LDK ranges from 110,000 to 130,000 yen ($730-$865 or €690-€815).
The main characteristic driving these highest rents is not just "central location" but specifically excellent transit connectivity combined with concentration of office jobs, retail, and dining options that allow residents to live a convenient, low-commute lifestyle without needing a car.
The typical tenant profile in these highest-rent Hiroshima neighborhoods includes dual-income professional couples, corporate transferees on housing allowances, and expats or international workers who prioritize walkability and transit access over space, and who are willing to pay a premium for a convenient urban lifestyle.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Japan. 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 Hiroshima in 2026?
What features increase rent the most in Hiroshima in 2026?
As of early 2026, the three property features that increase monthly rent the most in Hiroshima are proximity to a streetcar stop or JR station (walk time under 5 minutes), a modern bathroom with separate bath and toilet (called "bath-toilet separate" or BT別), and an auto-lock security entrance which has become nearly essential in central wards.
The single most valuable feature, walking distance to transit of under 5 minutes, can add a rent premium of 10% to 20% in Hiroshima because the city's layout makes streetcar and train access critical for commuters, and tenants will pay meaningfully more to avoid a 15-minute walk to the station.
One commonly overrated feature that Hiroshima landlords invest in but tenants rarely pay much extra for is high-end kitchen appliances or fancy countertops, because most Japanese renters cook minimally and prioritize bathroom quality and transit access over kitchen upgrades.
One affordable upgrade that delivers strong return on investment in Hiroshima is installing fiber internet infrastructure and ensuring the unit is "internet-ready" because remote work has become common and tenants, especially younger professionals, actively avoid units without reliable high-speed connectivity.
Do furnished rentals rent faster in Hiroshima in 2026?
As of early 2026, furnished apartments in Hiroshima rent faster than unfurnished units primarily among expats, corporate relocations, and shorter-stay tenants (3-12 months), often filling 2 to 4 weeks quicker in central areas, but for standard local long-term tenants the difference is negligible or even negative because many Japanese renters prefer to bring their own furniture.
Furnished apartments in Hiroshima typically command a rent premium of 10% to 20% over comparable unfurnished units, but this premium mainly applies in downtown Naka-ku and near Hiroshima Station where international and corporate tenant demand is concentrated, and evaporates in residential outer wards where local families dominate the renter pool.
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How regulated is long-term renting in Hiroshima right now?
Can I freely set rent prices in Hiroshima right now?
When starting a new lease in Hiroshima, landlords have full freedom to set whatever initial rent price the market will bear, with no government caps or controls on asking rents for new tenancies.
However, once a tenant is in place, Japan's Act on Land and Building Leases restricts your ability to raise rent during the tenancy: increases must be negotiated and can only be requested when justified by changes in taxes, land prices, or economic conditions, and tenants can formally dispute unreasonable increases through a legal process.
What's the standard lease length in Hiroshima right now?
The standard lease length for residential rentals in Hiroshima is typically 2 years, which is the norm across Japan, though fixed-term lease variants exist and most leases renew automatically unless either party gives notice.
The maximum security deposit a Hiroshima landlord can legally require is not strictly capped by law, but market practice is 1 to 2 months of rent (roughly 50,000 to 160,000 yen or $330-$1,065 or €310-€1,000 depending on unit size), and sometimes a separate "key money" (reikin) payment of 0 to 1 month which is a gift to the landlord and not refundable.
At the end of a tenancy in Hiroshima, the security deposit must be returned minus legitimate deductions for damages beyond normal wear and tear, and Japanese law requires landlords to provide an itemized accounting of any deductions, with disputes sometimes going to small claims mediation if the tenant disagrees.
We made this infographic to show you how property prices in Japan 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 Hiroshima in 2026?
Is Airbnb legal in Hiroshima right now?
Airbnb-style short-term rentals are legal in Hiroshima if you operate under the proper framework, most commonly the "minpaku" (private lodging) system which requires notification to local authorities and compliance with safety and neighborhood notification requirements.
To legally operate a short-term rental in Hiroshima, you must submit a notification to the city government and receive a registration number, a process that Hiroshima City outlines on its official minpaku guidance pages, and you must display this number on all listings.
The major constraint under Japan's minpaku law is an annual cap of 180 nights, meaning you cannot rent your property short-term for more than half the year unless you obtain a different license category such as a hotel or ryokan license which has much stricter requirements.
Operating an unlicensed or non-compliant short-term rental in Hiroshima can result in fines, forced removal of listings from platforms, and in serious cases referral to authorities for operating an illegal lodging business, so compliance is essential if you want to avoid legal trouble.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Hiroshima.
What's the average short-term occupancy in Hiroshima in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Hiroshima City ranges from about 45% to 60%, with downtown Naka-ku achieving the higher end around 60% and areas further from the center like Minami-ku averaging closer to 44%.
The realistic range most Hiroshima short-term rental operators experience is 40% to 65% annual occupancy, with performance heavily dependent on location, listing quality, pricing strategy, and review scores.
The highest occupancy months for Hiroshima short-term rentals are typically April through May (cherry blossom season and Golden Week holidays), August (summer travel peak and Obon holidays), and October through November (autumn foliage season), when tourist arrivals to Hiroshima's Peace Memorial Park and Miyajima spike.
The lowest occupancy months are generally January through February (post-New Year lull) and June through early July (rainy season), when domestic and international tourism to Hiroshima slows significantly and operators often need to discount rates to fill nights.
Finally, please note that you can find much more granular data about this topic in our property pack about Hiroshima.
What's the average nightly rate in Hiroshima in 2026?
As of early 2026, the average nightly rate for short-term rentals in Hiroshima is approximately 11,500 yen ($77 or €72) in downtown Naka-ku and around 12,000 yen ($80 or €75) near Hiroshima Station in Minami-ku, though rates vary based on property size, quality, and season.
The realistic range covering most Hiroshima short-term rental listings spans from about 8,000 yen ($53 or €50) for basic studios in less central areas to 18,000 yen ($120 or €113) or more for well-designed larger units in prime downtown locations.
The typical nightly rate difference between peak season (cherry blossom, Golden Week, autumn) and off-season (winter, rainy season) in Hiroshima is roughly 3,000 to 5,000 yen ($20-$33 or €19-€31) per night, with savvy operators adjusting prices dynamically to maximize revenue during high-demand periods.
Is short-term rental supply saturated in Hiroshima in 2026?
As of early 2026, the Hiroshima short-term rental market is moderately competitive rather than fully saturated, meaning new entrants can still succeed but need strong differentiation through location, design, or professional operations to stand out.
The current trend in active short-term rental listings in Hiroshima shows continued growth, with AirDNA data indicating Naka-ku active listings increased by approximately 8% year-over-year, suggesting the market is still expanding and competition is intensifying.
The most oversaturated neighborhoods for short-term rentals in Hiroshima are the central Naka-ku areas around Hatchobori and near Peace Memorial Park, where listing density is highest and new properties face the stiffest competition for bookings.
Neighborhoods that still have room for new short-term rental supply in Hiroshima include areas near Hiroshima Station (which benefits from shinkansen access), Nishi-ku around Yokogawa for budget travelers, and potentially near ferry terminals serving Miyajima day-trippers who want an alternative to staying on the island.
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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 Hiroshima, 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 |
|---|---|---|
| National Tax Agency Japan | Japan's official tax authority with final word on taxation rules. | We used it to explain non-resident rental income taxation and the 20.42% withholding rule. We also referenced the exception for tenants renting as their personal home. |
| Japanese Law Translation (Act on Land and Building Leases) | Official government translation of the actual lease law. | We used it to describe how rent increases work during tenancies. We also anchored standard lease expectations and tenant protections. |
| Hiroshima City Minpaku Guidance | Local government that enforces short-term rental rules in Hiroshima. | We used it to confirm the 180-night cap and notification requirements. We also explained what legal Airbnb operation looks like locally. |
| Hiroshima City Property Tax Examples | Hiroshima's own tax office explaining local property tax calculations. | We used it to confirm the 1.4% fixed asset tax and 0.3% city planning tax rates. We converted these into practical monthly budget estimates. |
| Hiroshima City English Tax Guidance | Official English guidance for property owners including overseas owners. | We used it to explain the tax agent concept for non-residents. We showed that Hiroshima supports overseas owners administratively. |
| Hiroshima Prefecture Housing Survey Summary | Prefectural statistics based on the national Housing and Land Survey. | We used it to anchor the 15.8% vacancy rate context for Hiroshima. We applied it as a market reality check for rental demand expectations. |
| AirDNA Hiroshima Naka-ku | Industry-standard STR data tracker used globally for benchmarking. | We used it to estimate downtown occupancy, ADR, and RevPAR. We compared STR earning potential against long-term rental income. |
| AirDNA Hiroshima Minami-ku | Same trusted STR data source covering different ward. | We used it to show that Hiroshima is not one market. We highlighted how STR performance differs significantly by ward. |
| CHINTAI 1K Rent Data | Major Japanese rental platform with transparent listing methodology. | We used it to estimate studio and 1K rents by Hiroshima ward. We built realistic rent ranges instead of misleading single averages. |
| CHINTAI 1LDK Rent Data | Same major platform with January 2026 updated ward-level data. | We used it to estimate one-bedroom rent levels across Hiroshima. We paired rents with purchase prices to calculate yield estimates. |
| CHINTAI 2LDK Rent Data | Updated January 2026 matching our writing timeframe. | We used it to estimate two-bedroom rents and identify high-rent wards. We sized family-tenant strategies and income expectations. |
| At Home Hiroshima Rent Overview | Another major Japanese portal useful for cross-checking rent levels. | We used it to verify that ward rent rankings matched other sources. We reduced single-platform bias in our estimates. |
We have made this infographic to give you a quick and clear snapshot of the property market in Japan. 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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