What rental yield can you expect in Medan? (2026)

Wondering what rental income you can realistically expect from property in Medan?

This article covers gross and net yields, neighborhood differences, and the costs that eat into your profits.

We update this blog post regularly so you always have fresh numbers.

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 Medan.

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Medan. If you’d like to learn more about us, you can check our presentation page.

What are the rental yields in Medan as of 2026?

What's the average gross rental yield in Medan as of 2026?

As of early 2026, the average gross rental yield in Medan is around 7% per year, meaning landlords collect annual rent equal to about 7% of their property's purchase price.

Most residential properties in Medan fall within a gross yield range of 5.5% to 9.5%, depending on neighborhood, condition, and how well the unit suits renters.

Compared to pricier Indonesian cities like Jakarta, Medan offers more favorable rent-to-price math because purchase prices are more accessible relative to what tenants pay.

The most important factor driving gross yields in Medan is purchase price discipline, since overpaying even slightly drags your yield down while the rent ceiling stays fixed.

What's the average net rental yield in Medan as of 2026?

As of early 2026, the average net rental yield in Medan is approximately 5.2% per year once you subtract recurring costs from gross rental income.

The typical gap between gross and net yields in Medan runs about 1.5 to 2 percentage points, covering vacancy, maintenance, taxes, and management fees.

The expense that most significantly reduces gross yield is the combination of property tax (PBB-P2) and the 10% final income tax on rent.

Most investment properties in Medan deliver net yields between 3.8% and 7%, with the range reflecting how well owners control costs and minimize vacancy.

By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Medan.

We made this infographic to show you how property prices in Indonesia 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 Medan in 2026?

In Medan's rental market in 2026, a gross yield of 7.5% or higher is generally considered "good" by local investors wanting a margin above inflation and operating expenses.

The threshold separating average from high performers is around 9% gross yield, though reaching that usually means trade-offs like less central location, older property, or higher turnover.

How much do yields vary by neighborhood in Medan as of 2026?

As of early 2026, the spread in gross rental yields between Medan's highest and lowest-yield neighborhoods is typically 2 to 5 percentage points.

Higher-yield neighborhoods tend to have consistent renter demand and affordable prices: Medan Selayang near the university, Medan Sunggal, Medan Helvetia, Medan Johor, and Medan Deli or Marelan.

Lower-yield neighborhoods are prestigious or central areas like Medan Polonia, Medan Baru (including Setia Budi), and Medan Petisah, where buyers pay premiums rents cannot match.

Yields vary because central prestige areas attract buyers willing to pay more than the rental math justifies.

By the way, we've written a blog article detailing what are the current best areas to invest in property in Medan.

How much do yields vary by property type in Medan as of 2026?

As of early 2026, gross rental yields across property types in Medan range from about 5% for standard landed houses up to 12% for well-managed kost properties.

Kost and room-rental houses deliver the highest yields in Medan at 8% to 12%, maximizing rental income per property despite requiring more active management.

Standard landed houses produce the lowest yields at 5% to 7%, since families have limited budgets relative to standalone house prices.

Yields differ because multi-tenant setups extract more total rent from the same property value, while single-family homes face a natural rent ceiling.

By the way, you might want to read the following:

• What rental yields can you expect for an apartment in Medan?

What's the typical vacancy rate in Medan as of 2026?

As of early 2026, the typical citywide residential vacancy rate in Medan is around 7%, meaning the average property sits empty for roughly one month per year.

Vacancy rates range from about 4% in prime, correctly priced areas up to 12% in fringe locations or overpriced properties.

The main factor driving vacancy in Medan is pricing discipline, since small overpricing adds weeks or months of vacancy that quickly erode returns.

Medan's vacancy rate aligns with other major Indonesian secondary cities outside Java, lower than some struggling markets but not as tight as sought-after Jakarta neighborhoods.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Medan.

What's the rent-to-price ratio in Medan as of 2026?

As of early 2026, the average rent-to-price ratio in Medan is about 0.55% per month, meaning monthly rent equals around half a percent of the purchase price.

For buy-to-let investors in Medan, a monthly rent-to-price ratio between 0.55% and 0.75% is favorable, and multiplying by 12 gives your annual gross yield.

Medan's rent-to-price ratio sits higher than central Jakarta or tourist-heavy Bali, making it more attractive for yield-focused investors prioritizing cash flow.

We have made this infographic to give you a quick and clear snapshot of the property market in Indonesia. 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 Medan give the best yields as of 2026?

Where are the highest-yield areas in Medan as of 2026?

As of early 2026, the highest-yield neighborhoods in Medan are Medan Selayang (especially near USU), Medan Sunggal, and Medan Johor, benefiting from steady renter demand without inflated prices.

These high-yield areas typically deliver gross yields between 7% and 10%, with some optimized properties in Medan Selayang and Medan Deli pushing higher.

What these neighborhoods share is a reliable renter base: students near USU in Medan Selayang, value-seeking families in Medan Sunggal, or industrial workers in Medan Deli and Marelan.

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 Medan.

Where are the lowest-yield areas in Medan as of 2026?

As of early 2026, the lowest-yield neighborhoods in Medan are Medan Polonia, Medan Baru (particularly Setia Budi), and Medan Petisah, where prestige pushes prices above what rents justify.

These low-yield areas typically produce gross yields of only 4.5% to 6.5%, noticeably below the citywide average.

Yields are compressed because buyers compete for limited inventory in desirable locations, driving prices up while rents remain constrained by affordability.

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 Medan.

Which areas have the lowest vacancy in Medan as of 2026?

As of early 2026, the neighborhoods with lowest vacancy rates in Medan are Medan Baru, Medan Petisah, and Medan Selayang, where strong demand keeps units filled consistently.

These areas typically see vacancy rates of just 4% to 6%, meaning properties might sit empty for only two to three weeks annually when priced correctly.

Demand stays strong due to central convenience for professionals in Medan Baru and Petisah, plus constant student turnover near USU in Medan Selayang.

The trade-off is that purchase prices tend to be higher, compressing yields even though occupancy is more reliable.

Which areas have the most renter demand in Medan right now?

The neighborhoods with strongest renter demand in Medan are Medan Selayang and Padang Bulan (students), Medan Baru and Petisah (professionals), and Medan Sunggal (value-conscious families).

Renter profiles driving demand include students and professionals seeking convenience near USU or the city center, plus working families needing space and access without premium prices.

Rental listings in these high-demand neighborhoods typically get filled within two to four weeks at market rates, versus six weeks or longer elsewhere.

If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Medan.

Which upcoming projects could boost rents and rental yields in Medan as of 2026?

As of early 2026, the top infrastructure projects expected to boost rents in Medan are the TransMebidang BRT system, the Medan-Binjai Toll Road extension, and mixed-use anchors like Podomoro City Deli Medan.

Neighborhoods likely to benefit include micro-areas near TransMebidang stops around Lapangan Merdeka, Medan Helvetia and Sunggal corridors along the toll road, and central districts near Medan Petisah.

Once fully operational, investors might expect rent increases of 5% to 15% in directly affected corridors, though the uplift will take a few years to materialize.

You'll find our latest property market analysis about Medan here.

What property type should I buy for renting in Medan as of 2026?

Between studios and larger units in Medan, which performs best in 2026?

As of early 2026, smaller units and efficient layouts outperform larger units in Medan for both rental yield and occupancy, simply because more tenants can afford them.

Studios and compact apartments typically deliver gross yields of 7% to 9% (Rp 70 to 90 million annually on a Rp 1 billion property, or $4,400 to $5,600 USD / €4,000 to €5,100 EUR), while larger units fall to 5% to 7%.

This gap exists because Medan has many students, young professionals, and single workers needing affordable housing, while families paying premium rents for larger spaces are fewer.

That said, larger units work better for corporate tenants or expatriate families near major employers, where stable long-term leases offset lower headline yields.

What property types are in most demand in Medan as of 2026?

As of early 2026, practical landed houses with two to four bedrooms, parking, and decent road access are the most in-demand property type for renters in Medan.

The top three property types by tenant demand are practical family houses, smaller well-located apartments or condos, and kost properties near universities and job clusters.

This demand pattern is driven by Medan's large base of working families and students who need affordable, functional housing rather than luxury finishes.

Large standalone villas or luxury homes are underperforming and likely to remain so, since the tenant pool willing to pay premium rents is quite limited in Medan.

What unit size has the best yield per m² in Medan as of 2026?

As of early 2026, compact units in the 20 to 45 square meter range deliver the best gross rental yield per square meter in Medan, as smaller spaces command higher rent relative to size.

For this optimal unit size, typical gross yield per square meter runs around Rp 1.5 to 2.5 million annually ($95 to $155 USD / €85 to €140 EUR per m² per year).

Larger units have lower yield per m² because families face a natural rent ceiling and won't pay proportionally more for extra space, while very small units may lack expected amenities.

By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Medan.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Indonesia 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 Medan as of 2026?

What are typical property taxes and recurring local fees in Medan as of 2026?

As of early 2026, annual property tax (PBB-P2) in Medan runs about 0.05% to 0.15% of market value, so for a Rp 1.5 billion property that means roughly Rp 750,000 to Rp 2.25 million per year ($47 to $140 USD / €43 to €128 EUR).

Landlords must also budget for rental income tax, commonly a 10% final tax on gross rent, so Rp 100 million in annual rent means about Rp 10 million ($625 USD / €570 EUR) in income tax.

Combined, these taxes typically represent about 10% to 12% of gross rental income in Medan, significant but manageable when planning net returns.

By the way, we cover all the hidden fees and taxes in our property pack covering the real estate market in Medan.

What insurance, maintenance, and annual repair costs should landlords budget in Medan right now?

Annual landlord insurance in Medan usually runs Rp 1 to 3 million per year ($60 to $190 USD / €55 to €170 EUR) depending on coverage and property value.

The recommended annual maintenance budget is about 1% of property value, so for a Rp 1.5 billion property, set aside roughly Rp 15 million per year ($940 USD / €850 EUR).

The repair expense that most catches Medan landlords off guard is AC servicing and replacement, since the tropical climate means units work hard year-round and fail frequently.

Total, landlords should budget around Rp 16 to 18 million per year ($1,000 to $1,130 USD / €910 to €1,020 EUR) for insurance, maintenance, and repairs.

Which utilities do landlords typically pay, and what do they cost in Medan right now?

In Medan, landlords of landed houses typically do not pay utilities since electricity, water, and internet are almost always the tenant's responsibility.

For apartment owners, the IPL (service charge) is building-enforced and runs Rp 7,000 to 20,000 per m² per month, so a 35 m² unit might cost Rp 245,000 to 700,000 monthly ($15 to $44 USD / €14 to €40 EUR) just for IPL.

What does full-service property management cost, including leasing, in Medan as of 2026?

As of early 2026, full-service property management in Medan costs about 6% to 10% of monthly rent, so Rp 8 million monthly rent means roughly Rp 480,000 to 800,000 in management fees ($30 to $50 USD / €27 to €45 EUR).

Leasing or tenant-placement fees commonly run 5% to 8% of first year's rent, meaning a Rp 96 million annual lease costs Rp 4.8 to 7.7 million ($300 to $480 USD / €270 to €435 EUR) per new tenant.

What's a realistic vacancy buffer in Medan as of 2026?

As of early 2026, landlords in Medan should set aside about 8% of annual rental income as a vacancy buffer, roughly one month of rent per year.

In prime areas with correct pricing, expect two to three weeks vacancy annually, but in fringe areas or with aggressive pricing, expect four to eight weeks per year.

What sources have we used to write this blog article?

Whether in our blog articles or the market analyses in our property pack about Medan, we rely on the strongest methodology we can and don't throw out numbers at random.

We aim to be fully transparent, so below we've listed the authoritative sources we used and explained our methods.

Source	Why it's authoritative	How we used it
Bank Indonesia Residential Property Price Survey	Indonesia's central bank publishes official housing indicators with clear methodology.	We used it to anchor price change direction going into 2026. We used it as our macro sanity check for yield estimates.
BPS-Statistics Indonesia RPPI 2025	BPS is the national statistics agency with official property price publications.	We used it to cross-check Bank Indonesia's price trends. We used it to avoid overstating price growth.
BPS Kota Medan "Kota Medan Dalam Angka 2025"	Medan's official annual statistical yearbook for local socio-economic data.	We used it to understand demand drivers shaping renter demand and vacancy. We used it to ground neighborhood narratives.
BPS Sumatera Utara 2025	Province-level official yearbook for regional context around Medan.	We used it to contextualize Medan within North Sumatra's economy. We used it to justify fringe zone rental demand.
BPS CPI Table for Housing Groups	Official inflation detail including housing-related components.	We used it to sanity-check rent pressure via housing-cost inflation. We used it to support gradual rent growth views.
BPS Kota Medan Inflation Releases	Official local statistical release on cost-of-living dynamics.	We used it to anchor the macro environment renters face. We used it to calibrate good yield expectations versus inflation.
Medan Perda No. 1/2024 (Taxes)	Official city legal text governing local taxes like PBB-P2.	We used it to describe recurring taxes that reduce net yield. We used it to keep tax assumptions legally compliant.
Bapenda Medan PBB-P2 Info	Official Medan local tax authority explaining PBB-P2.	We used it to explain how PBB-P2 is computed for landlords. We used it to avoid unofficial rules of thumb.
BPK Law Database Perda Medan No. 1/2024	BPK's regulation portal is a widely referenced legal registry.	We used it to cross-verify the Medan tax regulation. We used it as a secondary check alongside the JDIH PDF.
DDTCNews PPh Final Guidance	Major Indonesian tax research firm tracking compliance changes.	We used it to explain rental income tax mechanics. We used it to support rent income tax as a real cost.
Ortax Withholding Tax Summary	Long-running Indonesian tax reference used by practitioners.	We used it to cross-check the 10% final tax rate. We used it to keep net-yield models aligned with standard treatment.
Rumah123 Medan Rentals	One of Indonesia's biggest property portals with high listing volume.	We used it to triangulate typical asking rents across Medan. We used rent distribution to build robust yield estimates.
Rumah123 Agent Commission Guide	Mainstream industry portal citing standard brokerage practice.	We used it to estimate leasing fees reducing first-year net yield. We used it to explain first-year versus stabilized yield.
Pinhome Medan Rentals	Major Indonesian proptech platform with meaningful listing coverage.	We used it to cross-check rent levels and avoid single-platform bias. We used it to confirm consistent rent ranges.
KPPIP Medan-Binjai Toll Road	Official Indonesian government infrastructure body for National Strategic Projects.	We used it to identify infrastructure shifting accessibility and demand. We used it to support projects that could boost rents.
ITDP Indonesia TransMebidang BRT	Well-known international transport NGO with detailed local updates.	We used it to support that improved transit raises renter demand. We used it to justify mobility-linked micro-areas.
Agung Podomoro Land Podomoro City Deli	Direct-from-developer disclosure about a major Medan mixed-use asset.	We used it to identify developments anchoring premium rental pockets. We used it cautiously and cross-checked with portals.
OCBC Indonesia Apartment IPL Explainer	Major bank publishing conservative consumer finance explainers.	We used it to estimate monthly IPL service charges. We used it to translate hidden costs into net yield impact.
detikProperti IPL Explainer (2026)	Major national news outlet explaining IPL budgeting with current timing.	We used it to cross-check IPL concepts. We used it as mainstream media corroboration of IPL ranges.