How to calculate the rental price of a property in Peru

Asking S/ 1,800 when the market pays S/ 2,600 is giving away money; asking S/ 3,200 when the market pays S/ 2,600 is having the apartment empty for six months. Setting the fair rental price is a technical decision and, when done well, marks the difference between an investment that yields and one that barely sustains itself. This article walks through the four most-used methods in Peru for setting rents.

The cost of getting it wrong

A bad price costs in two ways:

• Underpricing: every S/ 200 per month over a three-year contract is S/ 7,200.
• Overpricing: the property sits empty. Each unoccupied month is a 100 % loss and, generally, one empty month wipes out the full year's overpricing.

The optimal price is not the highest: it is the one that rents fast to a stable tenant.

Method 1: market comparables

This is the basis of any professional appraisal:

1. Identify 5 to 10 similar properties listed or recently rented within 500 meters.
2. Filter by the same key variables: m², bedrooms, bathrooms, parking, age, floor, amenities.
3. Calculate the monthly price per m² and discard extremes.
4. Take the median and multiply by your m².
5. Adjust by specific features (see below).

Practical sources in Peru: Adondevivir, Urbania, Properati, Mercado Libre, Facebook district groups. If available, the CAPECO quarterly reports and the CCL reports give district references.

Method 2: the 0.5–0.8 % of value rule

A useful quick rule:

• Consolidated Lima districts (Miraflores, San Isidro, Surco): monthly rent represents 0.4 %–0.55 % of property value.
• Mid-range districts (Jesús María, Pueblo Libre, Magdalena, San Borja): 0.5 %–0.65 %.
• Consolidating districts (Comas, Los Olivos, Ate): 0.6 %–0.8 %.
• Affordable housing and outskirts: 0.7 %–0.9 %.
• Regional capitals (Arequipa, Trujillo, Cusco, Piura): 0.5 %–0.8 % depending on area.

Example: an apartment in Miraflores valued at S/ 720,000 rents roughly between S/ 2,900 and S/ 3,900.

Method 3: cap rate

For investors, the standard method:

Cap rate = Net annual rent ÷ Property value

Reference cap rates in Peru (2026):

• Lima premium (Miraflores, San Isidro): 4–5 %.
• Lima mid-range (Surco, Magdalena, Pueblo Libre, San Borja): 5–6.5 %.
• Emerging Lima (Comas, Los Olivos, Ate, San Juan de Lurigancho): 7–9 %.
• Arequipa, Trujillo, Cusco: 6–8 %.
• Affordable and multifamily housing outside the main axis: 8–10 %.

If the area's expected cap rate is 6 % and your property is worth S/ 320,000, net annual rent should be around S/ 19,200, that is S/ 1,600 per month. Add owner costs (property tax, fees, maintenance, 5 % first-category IR) to reach the gross listing price.

Method 4: macro indicators

Three references help calibrate:

• Consumer Price Index (CPI) — housing and services from INEI.
• Quarterly home price report from the BCRP (based on Metropolitan Lima supply).
• SBS active mortgage rates: when they rise, buying becomes less affordable and rental demand grows.

These data do not set the price but help decide whether an annual contract with CPI adjustment, a soles rent or a mix is preferable.

Adjustments to reach the final number

From the base price, adjust by:

• Parking: +5 to +12 % depending on district (in scarce-parking areas, up to +20 %).
• Storage or service room: +3 to +6 %.
• Open view / high floor: +5 to +10 %.
• Active amenities (pool, gym, common areas): +5 to +12 %.
• Age over 25 years without renovation: −10 to −20 %.
• Furnished and utilities included: +20 to +40 %, with higher turnover.
• Pets allowed: +5 % and a wider tenant universe.
• Seasonality: January–March (university and work moves) and August–October are usually peak.

Dynamic pricing

If after 30 days you have not received at least 8–10 visits, the price is probably 5–10 % too high. A 5 % reduction usually doubles visits. A decisive early correction beats a 20 % discount six months later.

Real case

An owner in Pueblo Libre wanted to rent an 85 m² apartment. His initial number (based on what his niece was paying for a similar apartment in 2019) was S/ 2,800. 2026 comparables: 8 properties between S/ 1,900 and S/ 2,300. Cap rate for the area: 6.2 %. Decision: list at S/ 2,100, unfurnished, with parking. Tenant signed in two weeks. Better net cash flow than waiting three months at the initial price.

Five practical recommendations

1. Use current comparables, not historical ones.
2. Cross at least two methods (comparables + cap rate).
3. Adjust by real features, not by "sentimental value".
4. Define a scheduled reduction plan if there is no traction at 30 days.
5. Include in the contract an annual review with INEI CPI or an agreed factor.

Want to know the fair rental price of your apartment or house? Get a free rental appraisal with Realio in less than a minute.