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Everything you need to know before buying real estate is included in our Japan Property Pack
Nagoya is Japan's fourth-largest city and a manufacturing powerhouse, which creates steady rental demand from both domestic workers and international professionals.
This guide covers everything you need to know about renting out residential property in Nagoya as a foreigner, from legal requirements to realistic yields and neighborhood-level insights.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Nagoya.
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 Nagoya.
Insights
- Nagoya's official citywide vacancy rate is 13.2%, but investor-relevant vacancy for well-located rentable units runs closer to 4% to 8% because much of that official figure includes unmarketable stock.
- Long-term rentals in Nagoya typically yield 3.5% to 4.5% gross, which drops to roughly 2.2% to 3.2% net after management fees, property taxes, and vacancy allowances.
- Short-term rentals in Nagoya face a national 180-day annual cap plus local restrictions that can limit operations to weekends only in many residential zones, making long-term often more profitable.
- Outer wards like Kita-ku, Nakagawa-ku, and Minami-ku can push gross yields above 5% because purchase prices are lower while rents remain relatively stable.
- A 1LDK apartment in central Nagoya wards like Naka-ku or Higashi-ku typically rents for 80,000 to 95,000 yen per month, which is roughly 520 to 620 USD or 480 to 570 EUR.
- Foreign owners can legally rent out property in Nagoya without residency by appointing a local tax agent and hiring a licensed property manager to handle day-to-day operations.
- Nagoya's rental market is shaped by two demand magnets: the Nagoya Station (Meieki) area and the Sakae-Fushimi central business district, where vacancy is lowest and rents are highest.
- Parking availability adds more rental value in Nagoya than in Tokyo because the city has a stronger car culture, especially in suburban wards where families dominate the tenant pool.
Can I legally rent out a property in Nagoya as a foreigner right now?
Can a foreigner own-and-rent a residential property in Nagoya in 2026?
As of early 2026, Japan allows foreigners to buy, own, and rent out residential property in Nagoya with no nationality-based restrictions on ownership or landlord activity.
Most foreign investors hold Nagoya rental property either in their personal name or through a Japanese corporation (godo kaisha or kabushiki kaisha), with personal ownership being simpler for smaller portfolios.
The main practical hurdle is not ownership legality but rather setting up proper tax compliance and property management, since you will need a local tax agent if you are a non-resident and a licensed manager if you want hands-off operations.
If you're not a local, you might want to read our guide to foreign property ownership in Nagoya.
Do I need residency to rent out in Nagoya right now?
You do not need to be a Japan resident to rent out property in Nagoya, and many foreign landlords operate entirely remotely by hiring a licensed property management company (kanri gaisha) to handle tenant relations, rent collection, and maintenance.
While residents have a MyNumber for tax purposes, non-resident owners typically appoint a tax agent in Japan who files returns and communicates with the tax office on their behalf.
A Japanese bank account is not strictly required, but most tenants and management companies prefer domestic accounts, so many foreign owners have their manager collect rent locally and remit funds internationally.
Remote management is entirely feasible for long-term rentals in Nagoya, though short-term rentals require more hands-on compliance work including guest ID verification and mandatory reporting to local authorities.
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What rental strategy makes the most money in Nagoya in 2026?
Is long-term renting more profitable than short-term in Nagoya in 2026?
As of early 2026, long-term renting is usually the more profitable and predictable strategy for most foreign owners in Nagoya because short-term rentals face a strict 180-day annual cap plus additional local restrictions in residential zones.
A well-managed long-term rental in Nagoya might generate 900,000 to 1,100,000 yen annually (roughly 5,800 to 7,100 USD or 5,400 to 6,600 EUR) for a typical 1LDK, while a short-term rental could theoretically earn more per night but loses income during the mandatory downtime and restricted periods.
Short-term renting can outperform long-term only if your property is in an unrestricted commercial zone, your building allows it, and you can maintain professional operations with strong occupancy during your legal operating window.
What's the average gross rental yield in Nagoya in 2026?
As of early 2026, the average gross rental yield for residential properties in Nagoya ranges from 3.5% to 4.5% for well-located apartments in mainstream areas.
The realistic range spans from about 3.0% gross in premium central locations (where purchase prices are high) up to 5.0% to 5.8% gross in outer wards where prices are lower but rental demand remains steady.
Smaller units like studios and 1K apartments typically achieve the highest gross yields in Nagoya because their purchase prices are lower relative to achievable rents, especially in areas with strong student or single-professional demand.
By the way, we have much more granular data about rental yields in our property pack about Nagoya.
What's the realistic net rental yield after costs in Nagoya in 2026?
As of early 2026, the average net rental yield after all operating costs for residential properties in Nagoya falls between 2.2% and 3.2% for a typical foreign-owned, professionally managed setup.
The realistic range runs from about 1.8% net in high-price central wards to around 3.5% net in outer areas where purchase prices are lower and the rent-to-price ratio is more favorable.
In Nagoya specifically, the three main cost categories that reduce gross to net yield are building management fees plus repair reserves (often 20,000 to 40,000 yen monthly), property and city planning taxes (which can average 10,000 to 25,000 yen monthly depending on assessed value), and professional rental management fees (typically 3% to 6% of monthly rent).
You might want to check our latest analysis about gross and net rental yields in Nagoya.
What monthly rent can I get in Nagoya in 2026?
As of early 2026, typical monthly rents in Nagoya are 50,000 to 70,000 yen (320 to 450 USD or 300 to 420 EUR) for a studio, 70,000 to 95,000 yen (450 to 620 USD or 420 to 570 EUR) for a 1-bedroom, and 95,000 to 145,000 yen (620 to 940 USD or 570 to 870 EUR) for a 2-bedroom apartment.
A decent studio in Nagoya can realistically rent for 45,000 to 65,000 yen per month (290 to 420 USD or 270 to 390 EUR), with the lower end in outer wards and the higher end in central areas near subway stations.
A typical 1-bedroom (1LDK) apartment in Nagoya rents for 70,000 to 95,000 yen per month (450 to 620 USD or 420 to 570 EUR), with central wards like Naka-ku, Higashi-ku, and Chikusa-ku clustering toward the top of that range.
A typical 2-bedroom (2LDK) apartment in Nagoya rents for 95,000 to 145,000 yen per month (620 to 940 USD or 570 to 870 EUR), with a wide split between affordable outer wards and premium central locations.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Nagoya.
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 Nagoya in 2026?
What's the total "all-in" monthly cost to hold a rental in Nagoya in 2026?
As of early 2026, the total "all-in" monthly cost to hold a typical rental apartment in Nagoya runs from 37,000 to 81,000 yen (240 to 530 USD or 220 to 490 EUR) before any rental income, covering fixed costs like building fees, taxes, and insurance.
The realistic range spans from about 30,000 yen monthly (195 USD or 180 EUR) for a smaller, older unit in an outer ward up to 90,000 yen monthly (585 USD or 540 EUR) for a larger, newer apartment in a central location with higher building management fees.
In Nagoya specifically, the largest single cost contributor is usually the combined building management fee plus repair reserve fund, which can run 20,000 to 40,000 yen monthly (130 to 260 USD or 120 to 240 EUR) and is often higher for newer buildings with more amenities.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Nagoya.
What's the typical vacancy rate in Nagoya in 2026?
As of early 2026, Nagoya's official citywide housing vacancy rate is 13.2% according to the Housing and Land Survey, but the investor-relevant vacancy rate for competitively priced, well-located rental units is closer to 4% to 8%.
A landlord in Nagoya should realistically budget for 0.5 to 1.0 months of vacancy per year for a good, well-priced unit, or 1.5 to 2.0 months per year for older buildings in weaker locations or overpriced listings.
The main factor driving vacancy differences across Nagoya neighborhoods is proximity to major transit nodes, with areas near Nagoya Station, Sakae, and Kanayama seeing the fastest tenant placement while outer wards without direct subway access experience longer vacant periods.
Tenant turnover in Nagoya typically peaks in March and April when the Japanese fiscal and academic year ends, creating a seasonal spike in both move-outs and new tenant demand that landlords should plan around.
We have a whole part covering the best rental strategies in our pack about buying a property in Nagoya.
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Where do rentals perform best in Nagoya in 2026?
Which neighborhoods have the highest long-term demand in Nagoya in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Nagoya are the Meieki area around Nagoya Station (Nakamura-ku), the Sakae-Fushimi central business district (Naka-ku), and the Kanayama interchange area at the border of Atsuta-ku and Naka-ku.
Families in Nagoya tend to favor quieter, more spacious wards like Mizuho-ku (known for good schools and residential calm), Meito-ku (suburban comfort with larger layouts), and Tempaku-ku (family-friendly pockets with room to grow).
Students in Nagoya cluster around Chikusa-ku (near Motoyama, Kakuozan, and Imaike stations), Showa-ku (around Tsurumai with university access), and parts of Tempaku-ku close to campus corridors.
Expats and international professionals in Nagoya often prefer Higashi-ku (upscale residential feel), central Naka-ku (Sakae-Fushimi convenience), and certain pockets of Showa-ku and Chikusa-ku with good transit and lifestyle amenities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Nagoya.
Which neighborhoods have the best yield in Nagoya in 2026?
As of early 2026, the top three neighborhoods with the best rental yields in Nagoya are Kita-ku, Nakagawa-ku, and Minami-ku, all outer wards where purchase prices lag behind rent levels.
These higher-yielding Nagoya neighborhoods typically offer gross yields in the 4.5% to 5.8% range, compared to 3.0% to 3.5% in premium central wards where prices are bid up by owner-occupiers.
The main characteristic allowing these neighborhoods to achieve higher yields is their distance from prime commercial centers, which keeps purchase prices low while stable local employment (especially in manufacturing and logistics) maintains rental demand.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Nagoya.
Where do tenants pay the highest rents in Nagoya in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Nagoya are Higashi-ku, Chikusa-ku, and Naka-ku, with premium 2LDK apartments reaching 120,000 to 145,000 yen per month (780 to 940 USD or 720 to 870 EUR).
A standard apartment in these premium Nagoya neighborhoods typically rents for 80,000 to 110,000 yen monthly (520 to 715 USD or 480 to 660 EUR) for a 1LDK and 100,000 to 145,000 yen monthly (650 to 940 USD or 600 to 870 EUR) for a 2LDK.
These neighborhoods command the highest rents because they combine direct subway access to both major employment centers (Nagoya Station and Sakae) with newer building stock, upscale retail, and a reputation for safety and lifestyle convenience.
The typical tenant profile in these highest-rent Nagoya neighborhoods includes dual-income professional couples, single executives at Toyota-affiliated companies, and foreign professionals on corporate housing allowances who prioritize short commutes and modern amenities.
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 Nagoya in 2026?
What features increase rent the most in Nagoya in 2026?
As of early 2026, the top three property features that increase monthly rent the most in Nagoya are walkable access to subway or rail stations (especially along the Higashiyama and Meijo lines), parking availability (more valuable here than in Tokyo due to car culture), and post-1981 earthquake-standard construction with good sound insulation.
Walkable station access within 10 minutes typically adds a 10% to 15% rent premium in Nagoya, with the effect being strongest near major interchange stations like Nagoya, Sakae, and Kanayama.
One commonly overrated feature in Nagoya is luxury interior finishes like marble countertops or designer fixtures, which tenants appreciate visually but rarely pay significantly more for compared to a clean, functional mid-range kitchen.
One affordable upgrade that provides strong return on investment in Nagoya is installing a video intercom with auto-lock entry, which adds perceived security and can justify 2,000 to 5,000 yen more in monthly rent for relatively modest installation costs.
Do furnished rentals rent faster in Nagoya in 2026?
As of early 2026, furnished apartments in Nagoya typically rent 1 to 3 weeks faster than unfurnished units when targeting singles, corporate transferees, or students, though families usually prefer unfurnished so they can bring their own belongings.
Furnished rentals in Nagoya can command a rent premium of roughly 10% to 20% over comparable unfurnished units, but landlords must budget for furniture replacement and deeper cleaning between tenants to maintain that premium.
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How regulated is long-term renting in Nagoya right now?
Can I freely set rent prices in Nagoya right now?
Landlords in Nagoya have substantial freedom to set initial asking rents based on market conditions, with no government-mandated rent caps or pricing floors for new leases.
However, mid-tenancy rent increases are not something you can impose unilaterally in Japan, because the Act on Land and Building Leases allows either party to request adjustments only when rent becomes "unreasonable" relative to taxes, economic conditions, or comparable rents, and disputes can end up in court or conciliation.
What's the standard lease length in Nagoya right now?
The standard lease length for residential rentals in Nagoya is 2 years with automatic renewal, which is the dominant market practice across Japan for ordinary building leases.
Security deposits (shikikin) in Nagoya are typically 1 to 2 months of rent as a market norm, though there is no hard legal cap, and some promotional listings offer zero-deposit terms to attract tenants faster.
Japanese law requires landlords to return the security deposit within a reasonable period after move-out, minus legitimate deductions for unpaid rent or damage beyond normal wear and tear, with disputes potentially going to a small claims process or the Legal Affairs Bureau.
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 Nagoya in 2026?
Is Airbnb legal in Nagoya right now?
Airbnb-style short-term rentals are legal in Nagoya under Japan's Private Lodging Business Act (minpaku law), but you must comply with registration requirements and operational restrictions that vary by zone.
To operate legally, you need to file a notification (todokede) with Nagoya City's health department, meet safety and sanitation standards, and in many cases appoint a licensed manager if you are not locally present to handle guest check-ins and emergencies.
Japan imposes a national cap of 180 days per year for minpaku operations, and Nagoya City adds local restrictions that can limit hosting to weekends only in certain residential-only zones, effectively reducing your annual operating window.
Operating an unlicensed or non-compliant short-term rental in Nagoya can result in fines up to 1 million yen (roughly 6,500 USD or 6,000 EUR), removal from listing platforms, and potential legal action from neighbors or building management associations.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Nagoya.
What's the average short-term occupancy in Nagoya in 2026?
As of early 2026, the average annual occupancy rate for compliant short-term rentals in Nagoya is roughly 55% to 65%, though your actual sellable nights may be lower if you are in a restricted residential zone.
The realistic range spans from about 45% occupancy for newer listings or properties in less touristy areas up to 70% to 75% for well-reviewed, centrally located units near Nagoya Station or Sakae.
Occupancy in Nagoya peaks during Golden Week (late April to early May), Obon (mid-August), and the autumn foliage season (November), when domestic and international tourists visit the city and nearby attractions like Inuyama Castle.
The lowest occupancy months in Nagoya are typically January (after New Year holidays) and June (rainy season before summer travel picks up), when tourist flow drops and business travel also slows.
Finally, please note that you can find much more granular data about this topic in our property pack about Nagoya.
What's the average nightly rate in Nagoya in 2026?
As of early 2026, the average nightly rate for a well-located entire-place short-term rental in Nagoya is 9,000 to 12,000 yen per night (58 to 78 USD or 54 to 72 EUR), varying by size, reviews, and distance to Nagoya Station or Sakae.
The realistic range spans from about 6,000 yen per night (39 USD or 36 EUR) for basic studios in outer areas up to 18,000 yen per night (117 USD or 108 EUR) for larger, well-designed units in prime locations during peak season.
Peak-season nightly rates in Nagoya can run 3,000 to 5,000 yen higher (20 to 32 USD or 18 to 30 EUR) than off-season rates, with the biggest premiums during Golden Week and major local events like the Nagoya Festival in October.
Is short-term rental supply saturated in Nagoya in 2026?
As of early 2026, the short-term rental market in Nagoya is not universally saturated, but the bigger constraint is legal and operational rather than raw competition, since many buildings prohibit STR and local zoning limits operating days.
The number of active short-term rental listings in Nagoya has grown modestly since the minpaku law took effect, but growth is constrained by building management rules and the 180-day cap, keeping supply more stable than in less-regulated markets.
The most oversaturated neighborhoods for short-term rentals in Nagoya are the areas immediately around Nagoya Station (Meieki) and Sakae, where competition is fiercest and many listings struggle to stand out without exceptional reviews or unique features.
Neighborhoods with more room for new short-term rental supply include Kanayama (good transit but less STR competition), areas near Nagoya Port (for Legoland visitors), and emerging tourist-adjacent pockets in Atsuta-ku near Atsuta Shrine.
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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 Nagoya, 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 |
|---|---|---|
| Nagoya City Housing and Land Survey | Official government survey results for Nagoya's housing stock and vacancy rates. | We used it to quote Nagoya's headline vacancy rate and housing counts. We also used it to anchor vacancy expectations with a real city-level baseline. |
| Statistics Bureau of Japan Housing Survey | The national statistics authority that runs Japan's official Housing and Land Survey. | We used it to confirm the survey framework and definitions. We used it as the source-of-truth reference for vacancy concepts. |
| Chubu REINS Market Reports | The official real estate network used by licensed brokers with real transaction data. | We used it to estimate purchase prices per square meter and typical condo prices in Nagoya. We combined those prices with rent benchmarks to estimate yields. |
| Japanese Law Translation Portal | Official government translations of Japanese laws including tenancy rules. | We used it to explain how rent changes work under the Land and Building Leases Act. We used it to keep the rent regulation section accurate. |
| Japan Tourism Agency Minpaku Portal | The national government's official portal for short-term rental regulations. | We used it to ground Airbnb legality in the national framework. We used it to explain licensing and the 180-day ceiling. |
| Nagoya City Minpaku Registration Page | The city's official guidance for operating short-term rentals in Nagoya. | We used it to confirm local minpaku definitions and procedures. We used it to anchor the licensing section in Nagoya-specific rules. |
| National Tax Agency Non-Resident Income Guide | Japan's tax authority explaining how non-resident rental income is taxed. | We used it to explain withholding tax and non-resident landlord basics. We used it to keep the tax discussion concrete and accurate. |
| LIFULL HOME'S Nagoya Rent Data | One of Japan's biggest property portals with rent benchmarks from large-scale listings. | We used it to benchmark typical rent levels across Nagoya wards. We validated that our rent estimates align with the live market. |
| CHINTAI Nagoya Rent Levels | A major Japanese rental portal publishing averaged asking rents by ward. | We used it to estimate realistic monthly rents for 1LDK and 2LDK segments. We used it to show ward-by-ward rent differences specific to Nagoya. |
| e-Stat Government Statistics Portal | Japan's official one-stop portal for government datasets used by ministries. | We used it to cross-check that Housing and Land Survey has city-level tables. We validated that Nagoya-level numbers are officially supported. |
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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