Gross and net rental yield in France: the calculation

Gross yield

Formula: gross yield (%) = monthly rent × 12 ÷ purchase price × 100.

It is a comparison indicator between cities or between properties, not an income. Our study prix 2025 des grandes villes (2025 prices in major cities) calculates it as follows: rent per m² × 12 ÷ median price per m², using actual sale prices from DVF (Demandes de valeurs foncières, the DGFiP’s property transaction database) and advertised rents including charges from the State’s rent map. It is an order of magnitude, before charges, property tax and vacancy; it is not calculated for Paris, Lyon and Marseille, where rents are published only by arrondissement (district).

Our acheter ou louer (buy or rent) comparison tool gives, city by city, the price in years of rent (price ÷ annual rent). Gross yield is its inverse: gross yield ≈ 100 ÷ years of rent. A city at 20 years of rent corresponds to roughly 5% gross; at 25 years, to 4%.

Net yield after costs

Formula: net yield (%) = (rent collected − non-recoverable costs) ÷ (price + purchase costs + works) × 100.

In the numerator, start from the rent actually collected: subtract the months of vacancy and any unpaid rent. Then deduct what remains payable by you. Service-public.gouv.fr lists the main deductible costs for unfurnished lettings, which are also the ones to include in the calculation:

• repair and maintenance costs;
• improvement works (energy renovation, for example);
• provisions for service charges (charges de copropriété, the portion not recoverable from the tenant);
• management fees;
• insurance premiums (home, unpaid rent, borrower…);
• loan interest;
• certain taxes, including the taxe foncière (property tax).

So-called charges locatives (recoverable charges), re-invoiced to the tenant, do not count: they are deducted from income (service-public.gouv.fr).

In the denominator, add to the price the purchase costs (transfer duties and notary’s emoluments, see our calcul des frais de notaire (notary’s fees calculator)) and any initial works. Loan interest may be left out of the net yield “of the property” and dealt with in the cash-flow calculation: simply state which convention you are using when comparing two properties.

After-tax net yield: the taxation of unfurnished lettings

For unfurnished lettings, rent counts as revenus fonciers (property income), subject to income tax (on the progressive scale) and to the 17.2% social charges, collected at source through instalments (service-public.gouv.fr).

Source: service-public.gouv.fr (F1991); CGI (code général des impôts, General Tax Code), art. 28 to 32.

• Under the micro-foncier, no costs or works can be deducted: the 30% allowance stands in for them (service-public.gouv.fr). It is therefore advantageous when your actual costs are less than 30% of the rent.
• The option for the réel is irrevocable for 3 years (service-public.gouv.fr).
• Under the réel, a déficit foncier (property loss), excluding loan interest, can be set against overall income up to €10,700 a year, raised to €21,400 for certain energy renovation works that take the home from E, F or G to A, B, C or D, paid between 1 January 2023 and 31 December 2027; the excess and the part relating to interest are carried forward against property income for the following 10 years. The deduction is clawed back if the property ceases to be let within 3 years (service-public.gouv.fr). Details in our guide déficit foncier (property loss).

Formula: after-tax net yield (%) = (rent collected − costs − income tax on property income − social charges) ÷ total cost × 100, where the tax is calculated on the taxable income in the table, at your marginal rate.

Furnished lettings follow different tax rules: see our guide LMNP (non-professional furnished letting). Service-public.gouv.fr compares the buy-to-let schemes in force, including Denormandie, Loc’Avantages and the tax status of the private landlord known as the “dispositif Jeanbrun” (Jeanbrun scheme) (F35782); see our guides Denormandie and Loc’Avantages.

Worked example (fictitious amounts)

The amounts below are fictitious and serve to show how the calculation works, not a market yield.

• Price €150,000 + purchase costs €12,000 = cost €162,000; rent €650 a month excluding charges.
• Gross: 650 × 12 ÷ 150,000 = 5.2%.
• Rent collected over 11 months (1 month of vacancy): €7,150. Non-recoverable costs (property tax, service charges, insurance, maintenance): €1,900. Net: (7,150 − 1,900) ÷ 162,000 = 3.2%.
• Tax: €7,150 ≤ €15,000, so micro-foncier is possible. Taxable income: 7,150 × 70% = €5,005. Social charges: 5,005 × 17.2% = €861. At a marginal rate of 30% (assumption), tax: €1,502. After-tax net: (5,250 − 861 − 1,502) ÷ 162,000 = 1.8%.

Which professional to consult

The agent immobilier (estate agent) can estimate the property’s market rent and offer letting management, whose fees are deductible under the réel. The courtier en crédit (mortgage broker) works out the financing and the effect of interest on cash flow. The notaire (notary) gives the exact amount of the purchase costs, and the diagnostiqueur (property surveyor) carries out the DPE (diagnostic de performance énergétique, energy performance rating), which is decisive for whether the home can be let (see our guide DPE et location (energy rating and letting)).