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Hiroshima offers rental yields that often outperform what you'd find in Tokyo or Osaka, making it an attractive option for investors looking beyond Japan's mega-cities.
In this guide, we break down the gross and net yields you can realistically expect in Hiroshima, explain which neighborhoods deliver the best returns, and show you the costs that eat into your profits.
We constantly update this blog post to keep the numbers fresh and relevant for your investment decisions.
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's citywide gross rental yield sits around 5.2% in early 2026, which is roughly 1 to 1.5 percentage points higher than what investors typically see in central Tokyo or Osaka.
- The gap between Hiroshima's highest-yield outer wards (like Asakita-ku at nearly 6.8% gross) and the lowest-yield central core (Naka-ku at around 4.3%) spans about 2.5 percentage points.
- Hiroshima's official vacancy rate is 11.7% citywide, but Asaminami-ku records just 7.4%, making it one of the easiest wards to keep units occupied.
- Compact studios and 1K units in Hiroshima typically yield 5.6% to 6.8% gross, but they come with higher tenant turnover than family-sized 2LDK or 3LDK units.
- The Hiroshima Station redevelopment by JR West and the Ekimae Ohashi Route that opened in August 2025 are already supporting rent growth in the Minami-ku corridor.
- Net yields in Hiroshima typically land around 3.4%, meaning recurring costs like condo fees, repair reserves, and taxes shave off roughly 1.5 to 2 percentage points from gross.
- Japan's condo repair reserve system is a real and unavoidable cost; MLIT guidelines require monthly contributions that can add up to over 13,000 yen per month on average.
What are the rental yields in Hiroshima as of 2026?
What's the average gross rental yield in Hiroshima as of 2026?
As of early 2026, the average gross rental yield in Hiroshima sits at around 5.2%, which is a solid figure for a regional Japanese city with stable renter demand.
Most typical residential properties in Hiroshima fall within a gross yield range of 4.3% to 6.8%, depending on whether you're buying in the expensive central core or the more affordable outer wards.
Compared to Japan's major metros like Tokyo (often 3% to 4% gross) or Osaka (around 4% to 5%), Hiroshima offers a noticeable premium that reflects its lower entry prices relative to achievable rents.
The single biggest factor influencing gross yields in Hiroshima right now is the price gap between central wards like Naka-ku and outer areas like Asakita-ku, since rents don't drop as fast as prices when you move away from the CBD.
What's the average net rental yield in Hiroshima as of 2026?
As of early 2026, the average net rental yield in Hiroshima is approximately 3.4%, which reflects what landlords actually keep after paying unavoidable recurring costs.
The typical gap between gross and net yields in Hiroshima runs about 1.5 to 2 percentage points, which is fairly standard for Japanese condos and apartments with their structured fee systems.
The expense category that cuts the most from gross yield in Hiroshima is the combination of condo management fees and repair reserve funds, which together often exceed 25,000 yen per month for a standard unit.
Most investment properties in Hiroshima deliver net yields in the 2.6% to 4.8% range, with the lower end representing premium central locations and the higher end reflecting older or outer-ward stock where entry prices are much lower.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Hiroshima.
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.
What yield is considered "good" in Hiroshima in 2026?
In Hiroshima's rental market, a gross yield of 5.5% or higher is generally considered good by local investors, since it comfortably exceeds the citywide average while still representing quality stock.
The threshold that separates average properties from high performers in Hiroshima is around 6.3% gross, though yields above 7% often signal older buildings or locations that require extra due diligence on maintenance and tenant quality.
How much do yields vary by neighborhood in Hiroshima as of 2026?
As of early 2026, the spread in gross rental yields between Hiroshima's highest-yield and lowest-yield neighborhoods is about 2.5 percentage points, ranging from roughly 4.3% in the core to 6.8% in outer wards.
The highest yields in Hiroshima typically come from outer suburban wards like Asakita-ku (neighborhoods such as Kabe and Kameyama) and Asaminami-ku (areas like Gion and Omachi), where purchase prices stay low but commuter rail keeps renter demand steady.
The lowest yields appear in Hiroshima's central business district, specifically Naka-ku neighborhoods like Hondori, Kamiyacho, Hatchobori, and Otemachi, where high demand pushes prices up faster than rents.
The main reason yields vary so much across Hiroshima's neighborhoods is that property prices are far more sensitive to location prestige than rents are, so outer areas offer better math even when absolute rents are lower.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Hiroshima.
How much do yields vary by property type in Hiroshima as of 2026?
As of early 2026, gross rental yields in Hiroshima range from about 4.6% for family-sized condos up to 6.8% for compact studios and 1K units, with detached houses falling somewhere in between at 4.8% to 6.5%.
Compact units like studios and 1K apartments currently deliver the highest average gross yields in Hiroshima because their rent per square meter is higher and purchase prices don't scale proportionally with size.
Family-sized condos (2LDK and 3LDK layouts) tend to have the lowest gross yields in Hiroshima, though they compensate with longer tenant stays and lower turnover costs.
The key reason yields differ by property type in Hiroshima is that small units command premium rents relative to their purchase price, while larger units spread fixed costs over more space but attract more price-sensitive family renters.
By the way, you might want to read the following:
What's the typical vacancy rate in Hiroshima as of 2026?
As of early 2026, Hiroshima City's overall residential vacancy rate stands at 11.7%, based on the most recent Housing and Land Survey conducted in 2023.
Vacancy rates across Hiroshima's neighborhoods range from about 7.4% in Asaminami-ku (the lowest) to 14.6% in Naka-ku (the highest), which might seem counterintuitive until you realize the central ward includes many older, less competitive units.
The main factor driving vacancy up or down in Hiroshima is building age and condition, since modern units with good transit access fill quickly while aging stock in any location struggles to compete.
Compared to Japan's national average (around 13% to 14%), Hiroshima's citywide vacancy rate is slightly better, though certain outer wards perform significantly better than the city average.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Hiroshima.
What's the rent-to-price ratio in Hiroshima as of 2026?
As of early 2026, the average annual rent-to-price ratio in Hiroshima is approximately 0.052, which translates to a price-to-rent multiple of about 19 times annual rent.
For buy-to-let investors in Hiroshima, a rent-to-price ratio above 0.055 (or a price-to-rent multiple below 18x) is generally considered favorable, and this ratio is essentially the same thing as gross rental yield expressed differently.
Compared to Tokyo (where multiples often exceed 25x annual rent) or even Osaka (around 20x to 22x), Hiroshima's 19x multiple makes it a more accessible market for yield-focused investors.
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.
Which neighborhoods and micro-areas in Hiroshima give the best yields as of 2026?
Where are the highest-yield areas in Hiroshima as of 2026?
As of early 2026, the three highest-yield areas in Hiroshima are Asaminami-ku (particularly Gion and Omachi), Asakita-ku (especially Kabe and Kameyama), and Saeki-ku (notably Itsukaichi), all of which benefit from commuter rail access and lower entry prices.
In these top-performing outer wards like Gion, Omachi, and Kabe, investors can typically achieve gross rental yields in the 5.7% to 6.8% range, with some older or smaller units pushing even higher.
What these high-yield Hiroshima neighborhoods share is consistent commuter demand via the Astram Line or JR connections, combined with purchase prices that haven't caught up to the rental market's steady demand.
You'll find a much more detailed analysis of the areas with high profitability potential in our property pack covering the real estate market in Hiroshima.
Where are the lowest-yield areas in Hiroshima as of 2026?
As of early 2026, the three lowest-yield neighborhoods in Hiroshima are all in Naka-ku's central core: Hondori, Kamiyacho, and Hatchobori, plus premium riverside pockets like Otemachi.
In these central Hiroshima locations, gross rental yields typically fall in the 4.3% to 5.3% range, reflecting the premium buyers pay for convenience and prestige.
Yields are compressed in Naka-ku's prime areas because purchase prices get bid up by both investors and owner-occupiers chasing walkability and lifestyle, while rents face practical ceilings set by tenant budgets.
Buying a property in a low-yield area is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Hiroshima.
Which areas have the lowest vacancy in Hiroshima as of 2026?
As of early 2026, the neighborhoods with the lowest residential vacancy in Hiroshima are concentrated in Asaminami-ku, which records just 7.4% vacancy, with micro-areas like Gion and Omachi being particularly easy to keep occupied.
In these low-vacancy Asaminami-ku neighborhoods, landlords typically experience vacancy rates of 6% to 8%, which translates to just 3 to 4 weeks empty per year on a well-maintained unit.
The main demand driver keeping vacancy low in areas like Gion and Omachi is convenient Astram Line access combined with family-friendly amenities, which creates steady tenant flow from both singles and households.
The trade-off investors face in these low-vacancy Hiroshima areas is that purchase prices have started creeping up as the "easy rental" reputation spreads, which gradually compresses the very yields that made them attractive.
Which areas have the most renter demand in Hiroshima right now?
The three neighborhoods currently experiencing the strongest renter demand in Hiroshima are the Naka-ku CBD core (Hondori, Kamiyacho, Hatchobori), the Hiroshima Station area in Minami-ku, and Yokogawa in Nishi-ku.
The renter profile driving most of this demand consists of young professionals and couples seeking walkable urban convenience, plus corporate transferees who prioritize transit access over space.
In these high-demand Hiroshima neighborhoods, well-priced rental listings for modern units typically receive inquiries within days and fill within 2 to 3 weeks of being posted.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Hiroshima.
Which upcoming projects could boost rents and rental yields in Hiroshima as of 2026?
As of early 2026, the three major projects expected to boost Hiroshima rents are the Hiroshima Station building redevelopment by JR West, the Ekimae Ohashi Route (which opened in August 2025), and ongoing improvements to the Hiroden streetcar network connecting the station to the CBD.
The neighborhoods most likely to benefit from these projects include the Hiroshima Station corridor in Minami-ku, transitional areas like Inarimachi, and the stretch connecting to Hatchobori and Kamiyacho in Naka-ku.
Investors targeting these improving corridors might realistically expect rent increases of 3% to 7% over the next few years as accessibility upgrades fully take effect and new commercial activity draws more residents.
You'll find our latest property market analysis about Hiroshima here.
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What property type should I buy for renting in Hiroshima as of 2026?
Between studios and larger units in Hiroshima, which performs best in 2026?
As of early 2026, compact studios and 1K units in Hiroshima outperform larger units on gross rental yield, but larger 2LDK and 3LDK units win on occupancy stability and lower tenant turnover.
Studios in central Hiroshima typically yield 5.6% to 6.8% gross (around 700,000 to 850,000 yen annually, or roughly 4,700 to 5,700 USD / 4,300 to 5,200 EUR), while family units yield 4.6% to 5.8% gross.
The main factor explaining why compact units outperform on yield is that rent per square meter is significantly higher for small spaces, and purchase prices don't rise proportionally when you add bedrooms.
However, larger units become the better investment choice in Hiroshima when you're targeting family renters who stay 3 to 5 years, since you'll save substantially on turnover costs and vacancy gaps between tenants.
What property types are in most demand in Hiroshima as of 2026?
As of early 2026, the most in-demand property type for renters in Hiroshima is modern condos and apartments with good transit access, air conditioning, and basic amenities like elevators.
The top three property types ranked by current tenant demand in Hiroshima are compact 1K/1DK units for singles in central wards, 2LDK family condos in commuter-friendly outer areas, and well-maintained small apartments near Astram Line or JR stations.
The primary demographic trend driving this demand pattern is Hiroshima's concentration of young professionals and small households who prioritize convenience and modern basics over raw space.
One property type currently underperforming in demand is older detached houses in far outer wards without convenient rail access, which face thin rental pools and longer vacancy periods.
What unit size has the best yield per m² in Hiroshima as of 2026?
As of early 2026, the unit size range that delivers the best gross rental yield per square meter in Hiroshima is approximately 20 to 35 square meters, which corresponds to studios and 1K layouts.
For these optimal-sized units in Hiroshima, the typical gross rental yield per square meter works out to roughly 3,500 to 4,500 yen monthly (about 24 to 30 USD / 22 to 28 EUR per square meter per month).
The main reason smaller units under 20 square meters or larger units above 50 square meters have lower yield per square meter is that very small units hit price floors while larger units spread rent across more space without proportional rent premiums.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable 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 costs cut my net yield in Hiroshima as of 2026?
What are typical property taxes and recurring local fees in Hiroshima as of 2026?
As of early 2026, a typical rental apartment in Hiroshima incurs annual property taxes (Fixed Asset Tax plus City Planning Tax) of roughly 80,000 to 150,000 yen (about 530 to 1,000 USD / 490 to 920 EUR), depending on the assessed value and location.
Beyond property taxes, Hiroshima landlords must also budget for condo management fees and repair reserve contributions, which together typically run 20,000 to 30,000 yen per month (around 130 to 200 USD / 120 to 185 EUR monthly).
Combined, these taxes and mandatory condo fees typically represent 15% to 25% of gross rental income in Hiroshima, which is why the gross-to-net gap runs 1.5 to 2 percentage points.
By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Hiroshima.
What insurance, maintenance, and annual repair costs should landlords budget in Hiroshima right now?
For a typical rental condo in Hiroshima, annual landlord insurance (fire plus optional earthquake coverage) costs roughly 20,000 to 80,000 yen (about 130 to 530 USD / 120 to 490 EUR), with the range depending on building age and coverage level.
Hiroshima landlords should budget approximately 0.3% to 0.7% of property value annually for maintenance and repairs, which for a 20 million yen property means roughly 60,000 to 140,000 yen per year (400 to 930 USD / 370 to 860 EUR).
The repair expense that most commonly catches Hiroshima landlords off guard is the special assessment for building-wide repairs (like exterior waterproofing or elevator replacement) that can suddenly add hundreds of thousands of yen on top of regular reserves.
In total, landlords should realistically budget 100,000 to 250,000 yen annually (roughly 670 to 1,670 USD / 610 to 1,530 EUR) for the combined insurance, maintenance, and repair category.
Which utilities do landlords typically pay, and what do they cost in Hiroshima right now?
In Hiroshima, standard long-term rental leases place utilities (electricity, gas, water, internet) entirely on the tenant, meaning landlords typically pay zero utility costs beyond common-area charges if they own an entire small building.
For the rare furnished or utilities-included rental in Hiroshima, landlords might cover monthly utilities of roughly 10,000 to 20,000 yen (about 67 to 133 USD / 61 to 122 EUR) per unit, though this arrangement is uncommon in the local market.
What does full-service property management cost, including leasing, in Hiroshima as of 2026?
As of early 2026, full-service property management in Hiroshima typically costs 3% to 6% of monthly rent (roughly 2,000 to 5,000 yen per month, or about 13 to 33 USD / 12 to 31 EUR monthly for a typical unit).
On top of ongoing management, leasing or tenant-placement fees in Hiroshima commonly run around one month's rent equivalent (perhaps 60,000 to 100,000 yen, or 400 to 670 USD / 370 to 610 EUR) each time you need to find a new tenant.
What's a realistic vacancy buffer in Hiroshima as of 2026?
As of early 2026, landlords in Hiroshima should set aside approximately 6% to 8% of annual rental income as a vacancy buffer if they own well-located, modern units, and 8% to 12% for older or outer-ward properties.
In practical terms, this translates to roughly 3 to 5 weeks of vacancy per year for a typical Hiroshima rental, accounting for turnover gaps and occasional longer searches for the right tenant.
Buying real estate in Hiroshima can be risky
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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 |
|---|---|---|
| Hiroshima City Housing and Land Survey 2023 | It's the city's official publication of Japan's national Housing and Land Survey results specifically for Hiroshima. | We used it to anchor vacancy rates by ward and understand Hiroshima's owner vs renter mix. We also used it to identify which wards have the most rental-focused housing stock. |
| e-Stat (Official Statistics of Japan) | e-Stat is Japan's official statistics portal run by the government's Statistics Bureau. | We used it as the primary ground truth reference for the Housing and Land Survey framework. We used it to cross-check that Hiroshima City's summary aligns with national survey methodology. |
| MLIT Real Estate Information Library | It's the Ministry of Land, Infrastructure, Transport and Tourism's official portal for transaction prices and land statistics. | We used it as the authoritative reference for how Japan defines and publishes transaction data. We used it to validate that our rent-price approach is consistent with Japan's official data ecosystem. |
| LIFULL HOME'S Hiroshima Rent Data | LIFULL HOME'S is one of Japan's largest property portals with transparent methodology and frequent updates. | We used it to estimate current asking rents by layout in central Hiroshima. We then translated those rents into annual gross rent for yield calculations. |
| LIFULL HOME'S Naka-ku Resale Prices | Same reason: large dataset, clear methodology notes, and updated price snapshots for Hiroshima's core ward. | We used it to estimate current resale pricing for a typical 70 square meter benchmark. We then combined it with rents to compute gross yields for central Hiroshima. |
| LIFULL HOME'S Minami-ku Resale Prices | It's a transparent, frequently updated pricing snapshot from a major national portal covering the station area ward. | We used it to position Minami-ku pricing versus Naka-ku around the Hiroshima Station area. We used that spread to explain why station-led micro-areas show different yield patterns. |
| LIFULL HOME'S Asakita-ku Resale Prices | Big portal data with an explicit lookback window and update cadence for one of Hiroshima's outer wards. | We used it as a suburban price anchor for outer ward yield calculations. We used it to show how lower entry prices can mechanically lift gross yield even when rents are lower. |
| At Home Naka-ku Price Snapshot | At Home is another long-standing major Japanese property platform that publishes how it computes its listing averages. | We used it as an independent cross-check on central Hiroshima pricing. We used it to confirm that LIFULL's price levels are not outliers. |
| Hiroshima City Fixed Asset Tax Page | It's the city's official page for property-related local taxes and administration. | We used it to frame the recurring tax bucket that affects net yields. We used it to keep the tax discussion Hiroshima-specific rather than generic Japan information. |
| Japan Housing Finance Agency Flat 35 Rates | JHF is a government-affiliated housing finance agency and Flat 35 is Japan's flagship reference mortgage rate. | We used it to describe the financing backdrop in early 2026 for context on investor pricing. We used the January 2026 posted ranges to provide current rate context. |
| REINS Condo Fee Trend Report | REINS is the designated national real estate transaction information network used by brokers across Japan. | We used it to ground typical condo management fees and repair reserve fund levels. We used it as a realistic order-of-magnitude input for net yield cost deductions. |
| MLIT Repair Reserve Fund Guideline | It's MLIT's official guidance document on condominium repair reserve funding requirements. | We used it to justify why repair reserves are a real, recurring cash cost for condos. We used it to support our net yield cost stack for condo-heavy Hiroshima rentals. |
| JR West Hiroshima Station Project | JR West is the primary rail operator and this is the official project page for a major city-defining redevelopment. | We used it to identify station-area catalysts that can lift rents around Hiroshima Station. We used it to explain where yield compression might happen first as prices rise. |
| Hiroshima City Ekimae Ohashi Route | It's the city's official transport infrastructure announcement page for this specific August 2025 opening. | We used it to pinpoint a specific accessibility upgrade tied to Hiroshima Station and CBD circulation. We used it to name micro-areas most likely to see rent support into early 2026. |
| Chugoku Electric Power | Chugoku Electric is the regional electricity provider for Hiroshima with published billing mechanics and tariffs. | We used it to provide order-of-magnitude utility cost estimates for the rare utilities-included rental. We used it to confirm that standard leases place utilities on the tenant. |
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