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If you're thinking about buying an apartment in Medan and renting it out, you're probably wondering what kind of return you can actually expect.
This guide breaks down everything you need to know about rental yields, tenant budgets, neighborhood demand, and the real costs that will eat into your profits in Medan as of early 2026.
We constantly update this blog post to keep the numbers fresh and relevant.
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.
What rental yields can I realistically get from an apartment in Medan?
What's the average gross rental yield for apartments in Medan as of 2026?
As of early 2026, the average gross rental yield for apartments in Medan sits around 5.0%, which means for every IDR 1 billion you spend on an apartment, you can expect roughly IDR 50 million in annual rent before any expenses.
The realistic range for gross rental yields in Medan spans from about 3.5% on the low end to 6.5% on the high end, depending on where you buy and what type of unit you choose.
The biggest factor that makes yields swing so much in Medan is that premium towers in areas like Medan Petisah often have purchase prices that climb faster than rents, while mid-market apartments near universities like USU or hospitals keep steadier occupancy and better rent-to-price ratios.
Compared to Jakarta, where apartment yields average around 4% to 4.3% in central areas, Medan offers slightly better gross yields, though Bali still leads Indonesia with yields that can reach 10% or higher for well-managed vacation rentals.
What's the average net rental yield for apartments in Medan as of 2026?
As of early 2026, the average net rental yield for apartments in Medan comes in around 3.3%, which is what you actually keep after paying all the real costs of ownership.
Most apartment investors in Medan can expect net yields somewhere between 2.3% and 4.6%, with the lower end reflecting luxury buildings with high service charges and the upper end representing well-priced units in areas with strong tenant demand.
The single biggest expense that eats into your gross yield in Medan is the IPL (Iuran Pengelolaan Lingkungan), which is the building service charge that typically runs between 8% and 15% of your monthly rent and covers security, maintenance, and common area upkeep.
By the way, you will find much more detailed data in our property pack covering the real estate market in Medan.
What's the typical rent-to-price ratio for apartments in Medan in 2026?
As of early 2026, the typical rent-to-price ratio for apartments in Medan hovers around 0.40% per month, which translates to roughly 4.8% per year and gives you a quick way to estimate if a deal makes sense.
The realistic range spans from about 0.30% to 0.55% per month, meaning an apartment priced at IDR 900 million (around USD 54,000 or EUR 49,000) could rent anywhere from IDR 2.7 million to IDR 5 million per month depending on location and condition.
Smaller studios and 1-bedroom units near Medan's university districts like Medan Selayang or the commercial hubs in Medan Barat tend to have the highest rent-to-price ratios because purchase prices stay moderate while steady tenant demand from students and young professionals keeps rents firm.
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How much rent can I charge for an apartment in Medan?
What's the typical tenant budget range for apartments in Medan right now?
In early 2026, most tenants looking for apartments in Medan have budgets ranging from IDR 3 million to IDR 12 million per month (roughly USD 180 to USD 715 or EUR 165 to EUR 655), with the bulk of demand clustering in the IDR 4 million to IDR 8 million range.
For mid-range apartments in Medan, tenants typically budget between IDR 5 million and IDR 10 million per month (around USD 300 to USD 595 or EUR 275 to EUR 545), which gets them a furnished 1-bedroom or basic 2-bedroom in a decent building with security and parking.
High-end and luxury apartment seekers in Medan budget IDR 12 million to IDR 20 million or more per month (approximately USD 715 to USD 1,190 or EUR 655 to EUR 1,090), targeting premium towers in Medan Petisah or Medan Maimun with full amenities like pools, gyms, and concierge services.
We have a blog article where we update the latest data about rents in Medan here.
What's the average monthly rent for a 1-bed apartment in Medan as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Medan sits around IDR 5 million per month, which works out to approximately USD 300 or EUR 275.
Entry-level 1-bedroom apartments in Medan rent for IDR 3.5 million to IDR 4.5 million per month (USD 210 to USD 270 or EUR 190 to EUR 245), and these typically look like older buildings in Medan Timur or Medan Selayang with basic furnishing, an AC unit, and shared parking.
Mid-range 1-bedroom apartments command IDR 5 million to IDR 6 million per month (USD 300 to USD 360 or EUR 275 to EUR 330), usually offering newer finishes, a small balcony, building security, and proximity to malls or office areas in Medan Baru or Medan Barat.
High-end 1-bedroom apartments in Medan reach IDR 6.5 million to IDR 8 million per month (USD 390 to USD 475 or EUR 355 to EUR 435), featuring premium towers in Medan Petisah with full amenities, modern kitchens, and building facilities like pools and fitness centers.
What's the average monthly rent for a 2-bed apartment in Medan as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Medan runs around IDR 8 million per month, equivalent to approximately USD 475 or EUR 435.
Entry-level 2-bedroom apartments in Medan go for IDR 5.5 million to IDR 7 million per month (USD 330 to USD 415 or EUR 300 to EUR 380), typically featuring older buildings in areas like Medan Timur with simple furnishings, two ACs, and basic kitchen setups suitable for small families or roommates.
Mid-range 2-bedroom units command IDR 8 million to IDR 10 million per month (USD 475 to USD 595 or EUR 435 to EUR 545), offering newer constructions in Medan Baru or Medan Barat with separate living areas, fully equipped kitchens, and building amenities like 24-hour security and dedicated parking.
High-end 2-bedroom apartments reach IDR 11 million to IDR 14 million per month (USD 655 to USD 835 or EUR 600 to EUR 765), located in premium developments in Medan Petisah or Medan Maimun with spacious layouts, quality finishes, and resort-style facilities.
What's the average monthly rent for a 3-bed apartment in Medan as of 2026?
As of early 2026, the average monthly rent for a 3-bedroom apartment in Medan comes in around IDR 13 million per month, roughly USD 775 or EUR 710.
Entry-level 3-bedroom apartments in Medan start at IDR 9 million to IDR 11 million per month (USD 535 to USD 655 or EUR 490 to EUR 600), typically older units in secondary locations with basic furnishings, multiple ACs, and enough space for families who prioritize affordability over luxury finishes.
Mid-range 3-bedroom units run IDR 12 million to IDR 15 million per month (USD 715 to USD 895 or EUR 655 to EUR 820), offering modern layouts in established buildings around Medan Baru or Medan Maimun with separate dining areas, helper's quarters, and covered parking.
High-end 3-bedroom apartments reach IDR 16 million to IDR 20 million or more per month (USD 950 to USD 1,190+ or EUR 870 to EUR 1,090+), representing top-tier developments in Medan Petisah with premium finishes, multiple bathrooms, city views, and full access to building amenities like pools, gyms, and function rooms.
How fast do well-priced apartments get rented in Medan?
A well-priced, clean, and furnished apartment in a strong Medan neighborhood typically gets rented within 3 to 6 weeks, while overpriced units or those in weak locations can sit vacant for 2 to 4 months or longer.
Vacancy rates for apartments in Medan generally run between 5% and 15% annually, depending heavily on the building quality, location, and whether the landlord prices competitively from the start.
The main factors that make some Medan apartments rent much faster than others include proximity to the city's university cluster (especially USU and nearby institutions), walkable distance to major malls like Sun Plaza or Centre Point, and having durable furnishings with reliable AC units, because Medan's hot climate makes air conditioning non-negotiable for tenants.
And if you want to know what should be the right price, check our latest update on how much an apartment should cost 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.
Which apartment type gives the best yield in Medan?
Which is better for yield between studios, 1-bed, 2-bed and 3-bed apartments in Medan as of 2026?
As of early 2026, studios and compact 1-bedroom apartments in Medan typically offer the best rental yields, followed by standard 1-beds, then 2-beds, with 3-bedroom units usually delivering the lowest yields.
In Medan, studios tend to yield around 5.5% to 6.5% gross, 1-beds around 4.5% to 5.5%, 2-beds around 4% to 5%, and 3-beds around 3.5% to 4.5%, though these ranges shift based on specific location and building quality.
The main reason smaller units outperform in Medan is that purchase prices climb steeply as you add bedrooms, but rents don't keep pace proportionally, plus the tenant pool for affordable studios and 1-beds (students, young professionals, domestic workers) is much deeper and more consistent than the smaller pool of families seeking large apartments.
Which features are best if you want a good yield for your apartment in Medan?
The features that most positively impact rental yield in Medan are simple but durable furnishings (bed, wardrobe, fridge, washing machine hookup), working and powerful AC units (critical in Medan's tropical heat), and reliable building security with 24-hour guards, because tenants in this market pay for practicality and peace of mind over flashy luxury finishes.
In Medan's apartment market, middle floors (around floors 5 to 15) tend to rent out fastest because they avoid the noise and security concerns of lower floors while dodging the elevator wait times and potential water pressure issues of very high floors.
Apartments with balconies or outdoor space do command slightly higher rents in Medan, typically 5% to 10% more than comparable units without, though the premium isn't as dramatic as in cooler climates since outdoor living in Medan's humidity is less appealing.
Building features like elevators, concierge, and dedicated parking do justify higher rents in Medan, but you need to carefully check whether the rent premium covers the higher IPL service charges, as some buildings charge IDR 20,000 to 30,000 per square meter monthly for premium amenities that only boost rent by 10% to 15%.
Don't buy the wrong property, in the wrong area of Medan
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Which neighborhoods give the best rental demand for apartments in Medan?
Which neighborhoods have the highest rental demand for apartments in Medan as of 2026?
As of early 2026, the neighborhoods with the highest rental demand for apartments in Medan include Medan Petisah (the CBD-adjacent commercial hub), Medan Barat (close to core city activity), Medan Baru (popular with professionals near universities and amenities), Medan Maimun (home to major mixed-use developments), and Medan Selayang (strong student and young professional demand).
The main demand driver that makes these Medan neighborhoods attractive to tenants is proximity to the city's employment clusters, hospitals like RS Columbia Asia and RS Adam Malik, major universities including USU, and shopping centers like Sun Plaza, Centre Point, and Cambridge City Square, all of which create a steady flow of professionals, students, and medical tourists needing housing.
In these high-demand Medan neighborhoods, well-priced apartments typically rent within 3 to 4 weeks, with vacancy rates staying below 8% annually for properly maintained and competitively priced units.
One emerging area gaining rental momentum in Medan is Medan Polonia, benefiting from airport proximity and new commercial developments that attract business travelers and airline staff seeking convenient short-term and medium-term housing.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Medan.
Which neighborhoods have the highest yields for apartments in Medan as of 2026?
As of early 2026, the neighborhoods with the highest rental yields for apartments in Medan include Medan Selayang, parts of Medan Baru near universities, and non-prime sections of Medan Barat, where purchase prices stay reasonable while tenant demand remains strong.
In these top-yielding Medan neighborhoods, gross rental yields typically range from 5.5% to 6.5%, compared to the city average of around 5% and premium areas like central Medan Petisah where yields often drop to 3.5% to 4.5%.
The main reason these neighborhoods offer higher yields is that purchase prices per square meter remain 20% to 40% lower than in premium towers, while rents hold relatively firm due to consistent demand from students attending nearby universities, hospital workers, and young professionals who prioritize affordability and commute convenience over luxury amenities.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Indonesia. 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.
Should I do long-term rental or short-term rental in Medan?
Is short-term rental legal for apartments in Medan as of 2026?
As of early 2026, short-term rentals for apartments in Medan are generally legal but come with conditions, as they can be classified as accommodation services similar to hotels and may trigger local tax obligations under Medan's PBJT (Pajak Barang dan Jasa Tertentu) framework.
The main legal restrictions for operating a short-term rental apartment in Medan include potential registration requirements with local authorities, compliance with the accommodation services tax at up to 10% of revenue, and critically, checking whether your specific building's management or HOA rules allow short-term stays, as many Medan condominiums prohibit them entirely.
For Airbnb-style rentals in Medan, there's no single citywide registration system, but landlords technically should report accommodation income and may need to coordinate with Bapenda Medan (the city revenue agency) for tax compliance, especially if operating multiple units or generating significant revenue.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Medan.
What's the gross yield difference short-term vs long-term in Medan in 2026?
As of early 2026, short-term rentals in Medan can generate roughly 1.5 to 2.5 times the gross income of long-term rentals if you achieve decent occupancy, but they can also underperform long-term rentals if your occupancy drops below 50% to 60%.
For apartments in Medan, long-term rentals typically yield around 4% to 5% gross, while well-managed short-term rentals can reach 7% to 11% gross, though poorly executed short-term strategies often land between 3% and 5%, sometimes worse than just signing a 12-month lease.
The main additional costs that reduce the net yield advantage of short-term rentals in Medan include cleaning fees between guests (IDR 150,000 to 300,000 per turnover), platform commissions of 3% to 15%, higher utility consumption, faster furniture wear, and the accommodation services tax of up to 10% if you're operating compliantly.
To outperform a long-term rental in Medan, a short-term rental typically needs to maintain at least 55% to 65% occupancy at nightly rates roughly 2.5 to 3 times higher than the equivalent daily rate of a long-term lease, which is achievable in prime locations but challenging in secondary areas with less tourist or business traveler traffic.
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What costs will eat into my net yield for an apartment in Medan?
What are building service charges as a % of rent in Medan as of 2026?
As of early 2026, the typical building service charge (IPL) for apartments in Medan runs around 10% of monthly rent, which works out to roughly IDR 400,000 to IDR 800,000 per month (approximately USD 24 to USD 48 or EUR 22 to EUR 44) for a standard mid-market unit.
The realistic range of building service charges in Medan spans from about 8% of rent for basic buildings to 15% of rent for premium towers, with absolute amounts ranging from IDR 300,000 to IDR 1.5 million monthly (USD 18 to USD 90 or EUR 16 to EUR 82) depending on unit size and building class.
Services that typically justify higher-than-average IPL charges in Medan include 24-hour concierge and security staffing, swimming pool and gym maintenance, backup generator coverage for the city's occasional power fluctuations, and elevator maintenance for taller buildings, all of which add operational costs that get passed to unit owners.
What annual maintenance budget should I assume for an apartment in Medan right now?
Apartment owners in Medan should budget around 0.7% of the property value per year for maintenance, which translates to roughly IDR 6 million to IDR 7 million annually (approximately USD 360 to USD 415 or EUR 330 to EUR 380) for a typical mid-range apartment valued at IDR 900 million.
The realistic range of annual maintenance costs in Medan spans from about 0.5% of property value for newer buildings in good condition to 1.0% or more for older units that need more frequent repairs, meaning budgets could range from IDR 4.5 million to IDR 10 million per year (USD 270 to USD 595 or EUR 245 to EUR 545).
The most common maintenance expenses apartment owners face annually in Medan include AC servicing and occasional compressor replacements (critical given the tropical heat), water heater repairs, minor plumbing fixes due to hard water buildup, and periodic repainting or furniture refreshes to keep units competitive for tenants.
What property taxes should I expect for an apartment in Medan as of 2026?
As of early 2026, the typical annual property tax (PBB-P2) for a middle-class apartment in Medan ranges from about IDR 500,000 to IDR 3 million per year (approximately USD 30 to USD 180 or EUR 27 to EUR 165), with higher-value units in premium locations paying more.
The realistic range of property taxes in Medan depends heavily on the NJOP (Nilai Jual Objek Pajak, or assessed value) of your specific unit, with basic apartments in secondary areas paying as little as IDR 300,000 annually while luxury units in prime buildings can reach IDR 5 million or more (USD 18 to USD 300 or EUR 16 to EUR 275).
Property taxes in Medan are calculated by applying progressive tax rates to the NJOP of your property, with rates varying based on value brackets as specified in Perda Kota Medan No. 1 Tahun 2024, and assessments typically running below actual market values.
Property tax exemptions or reductions in Medan are limited for investment properties, though there's a non-taxable threshold (NJOPTKP) that reduces the taxable base slightly, and some provisions exist for properties used for social or religious purposes that wouldn't apply to typical rental apartments.
If you want to go into more details, we also have a blog article detailing all the property taxes and fees in Medan.
How much does landlord insurance cost for an apartment in Medan in 2026?
As of early 2026, typical annual landlord insurance for an apartment in Medan costs around 0.20% of the insured value, meaning coverage for IDR 300 million worth of contents and fixtures would run approximately IDR 600,000 per year (roughly USD 36 or EUR 33).
The realistic range of annual landlord insurance costs in Medan spans from about 0.05% to 0.25% of insured value depending on coverage level, building class, and insurer, translating to roughly IDR 150,000 to IDR 750,000 per year (USD 9 to USD 45 or EUR 8 to EUR 41) for typical apartment contents coverage.
What's the typical property management fee for apartments in Medan as of 2026?
As of early 2026, the typical property management fee for apartments in Medan runs around 8% of collected rent for ongoing management, plus a one-time leasing commission of about 5% of annual rent when finding new tenants, which translates to roughly IDR 400,000 to IDR 1 million per month (USD 24 to USD 60 or EUR 22 to EUR 55) in management fees for a mid-range unit.
The realistic range of property management fees in Medan spans from 5% to 10% of rent for ongoing management and 5% to 8% of annual rent for leasing commissions, with full-service packages (including tenant finding, rent collection, and maintenance coordination) costing around 10% to 15% of collected rent monthly.
Standard property management fees in Medan typically include rent collection and deposit handling, routine tenant communication, coordination of minor repairs and maintenance, periodic property inspections, and basic financial reporting, though marketing for new tenants and major repair coordination often cost extra.
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 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 Medan, 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 |
|---|---|---|
| Bank Indonesia SHPR Report | Indonesia's central bank reporting official housing market survey results. | We used it to anchor the national price trend context going into early 2026. We used it to avoid random price growth assumptions when estimating Medan purchase prices. |
| Global Property Guide | Long-running cross-country housing market data with consistent yield definitions. | We used it as a national benchmark for gross yields to check our Medan-specific estimates. We validated that our Medan yield range sits in a plausible Indonesia-wide band. |
| Rumah123 | One of Indonesia's biggest property portals with large listing volume. | We observed asking-rent ranges for furnished and unfurnished units by bedroom count. We used it as one leg of rent triangulation across multiple portals. |
| 99.co Indonesia | Major Southeast Asian proptech portal with visible district segmentation. | We anchored district-level rent floors and identified where cheap versus premium rentals begin. We used it as a second rent source to avoid single-portal bias. |
| Perda Kota Medan No. 1 Tahun 2024 | Official City of Medan regulation repository as the primary legal source. | We grounded property tax (PBB-P2) and hotel/short-stay tax (PBJT) discussions in real law. We avoided guessing tax categories that affect net yield calculations. |
| Bapenda Kota Medan | City revenue agency explaining how local taxes work in practice. | We interpreted how PBB-P2 property tax is calculated at the city level. We translated the legal framework into investor-friendly cost expectations. |
| Astraland Indonesia | Recognized Indonesian developer explaining common IPL fee ranges. | We anchored service charge (IPL) ranges per square meter per month. We converted building charges into a percentage of rent for net yield calculations. |
| Allianz Indonesia | Major insurer showing explicit premium rate calculation examples. | We built realistic insurance cost estimates using their published rate examples. We ensured our net yield calculation includes a defensible insurance line item. |
| Tokio Marine Indonesia | Major insurer providing tariff figures in a formal product brochure. | We cross-checked insurance rate realism against another top Indonesian insurer. We kept our insurance assumptions conservative for apartment coverage. |
| Airbnb Indonesia Tax Guide | Platform-issued tax guide summarizing how Indonesia treats short stays. | We defined short-term rental in a way aligned with tax treatment. We used it as a practical compliance cross-check against Medan's PBJT framing. |
| Rumah123 Agent Commission Guide | Mainstream portal citing Indonesian regulation on commission norms. | We estimated leasing and agent fees as a realistic cost of renting out. We aligned management fee assumptions with common practice and stated legal ranges. |
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