A well-managed rental yield in Asunción sits between 5 and 7% net for long-term rentals, and between 8 and 10% net for short-term lets. That is the short answer. The useful answer is more nuanced: the outcome depends on the neighborhood, the strategy and the quality of management, and many of the figures floating around are gross numbers dressed up as net. This article lays out the figures we can source, and the method to read them.
Gross, net: what are we actually measuring
The market happily advertises 8 to 12%. That is usually gross, before costs, taxes and vacancy. We think in three levels, calculated on the total amount invested (property price, acquisition costs, furniture), not just on the price of the apartment.
A teaching example, the one we use in our Paraguay investment guide: a 35 sqm studio on a long-term lease.
| Item | Amount |
|---|---|
| Property price | $80,000 |
| Acquisition and notary costs | ~$3,500 |
| Furnishing | ~$5,000 |
| Total invested | $88,500 |
| Gross annual rent ($650/month) | $7,800 |
| Gross yield | ≈ 8.8% |
| Net after costs | ≈ 6.4% |
| Net after tax (INR, 7.5% of rent) | ≈ 5.7% |
Between the 8.8% on the flyer and the 5.7% actually banked, there is a third of a gap. Keep the method rather than the example: always ask for the three levels before you buy.
Long-term: every neighborhood has its own profile
Asunción's rental market is driven by fast-rising immigration and a young population. According to a survey we ran in 2025 among 50 market players (developers, agents, managers), well-positioned apartments show 85 to 90% real occupancy.
- Villa Morra: the premium neighborhood. Upmarket residential and in high demand, it carries some of the highest prices in the capital. It is the natural ground for high-end long-term rentals and expats.
- Los Laureles: the established residential area. Quiet, family-friendly, with occupancy reported at 100% on existing buildings. Strong demand, little new supply.
- Avenida Molas López: the most active construction zone, and the highest price per sqm in Asunción. Very central, popular for short-term lets, less pleasant year-round while the building sites are running.
- Luque (CIT zone): the bet on the future, flagged by most of the 50 players we surveyed as the area with the strongest 5-year potential. A more accessible entry budget.
Prices in Asunción range from roughly $1,500 to $2,500 per sqm depending on the zone and the standard: the neighborhood you pick therefore drives your entry ticket as much as your rent.
Short-term: what the AirDNA data says
For Airbnb-style rentals, we rely on AirDNA benchmarks (trailing 12 months, 2-bedroom comparables curated zone by zone). Two areas illustrate the gap between a premium neighborhood and an entry-level one.
| Shopping del Sol / Las Lomas area | Airport / Luque (CIT) area | |
|---|---|---|
| Average nightly price (median) | ≈ $66 | ≈ $46 |
| Median occupancy | ≈ 73% | ≈ 56% |
| Median potential annual revenue | ≈ $14,800 | ≈ $8,800 |
| Top operators | $21,000 to $25,000/year | $11,000 to $13,000/year |
These figures are gross. Once you deduct the management commission, the platform fees and the property's running costs, the net margin we see in our models sits around 58 to 61% of gross in the Las Lomas area, and 51 to 56% in Luque: fixed costs mechanically weigh more on a smaller revenue.
The most counterintuitive lesson from the data: the main lever is the nightly price, not the occupancy rate. The best operators in Las Lomas run at 76-77% occupancy with high prices, and earn clearly more than those who cut prices to fill the calendar.
Which neighborhood for which strategy
Cross-referencing both markets: Villa Morra and Los Laureles for stable long-term income, Molas López and Las Lomas to maximize short-term, Luque for a lower entry ticket with a bet on appreciation. No neighborhood wins on every front, and that is good news: your choice depends on your goal, not on a universal ranking. The programs we distribute cover these different zones.
The blind spot: management
The same apartment, in the same building, can produce twice as much depending on how well it is managed: dynamic pricing, quality of the listings, responsiveness, upkeep. That is even truer from a distance. For short-term rentals, our sister company MOA Properties manages the properties of investor owners in Asunción, which lets you buy here and rent out without being on the ground.
Let's talk about your project
These figures describe markets, not your property. On a specific project, we hand you the same three-level grid (gross, net after costs, net after tax) with the real numbers of the unit you are considering, before any commitment. Let's talk to get your simulation.
This article is provided for general information only and does not constitute financial advice. Past or comparable observed returns do not guarantee future performance: confirm any projection against the real figures of the property under consideration.