French big cities yield only about 3.8-4.0% gross (Paris, Lyon, Bordeaux), while Marseille, Montpellier and Grenoble reach roughly 5.2-5.7%. Rent rules, energy labels and tax decide what you keep.
Investment property in France is a stability play rather than a yield play. In the biggest cities, gross yields sit around 3.8% to 4.0%, in the better-value regional cities around 5% to 5.7%, and the net figure after costs and tax is lower again. This guide shows the numbers by city, the French rules that change them (rent control, energy labels, furnished-let tax) and what a non-resident owner pays on rental income. Figures are indicative as of October 2026 and are not a promise for any single unit. For what you pay to buy, see France property prices and buying costs.
Gross yield by city
Gross yield is annual rent divided by the purchase price, before any cost or tax. Aggregators that compile asking rents and prices for 2026 show roughly this picture for apartments:
- Paris: about 3.9% gross, with rents around €33 per m² a month but prices near €9,700 per m²
- Lyon: about 3.8%
- Bordeaux: about 4.0%
- Nice: roughly 4.5% to 6%, a wide range that depends on the district, the size and whether the let is long or seasonal
- Marseille: about 5.4%
- Montpellier: about 5.2%
- Grenoble: about 5.7%
The pattern is simple. The more expensive and sought-after the city, the lower the yield, because prices run well ahead of rents. Paris is the safest market and the thinnest return. Marseille, Montpellier and Grenoble pay more per euro invested but carry more risk on tenant quality and resale liquidity. These are asking-price averages; real yields depend on the street and the building.
Mountains and the Riviera
In ski resorts, market sources describe about 3% to 5% gross from seasonal letting through the usual platforms, with the real appeal being use for yourself and capital value. Courchevel is often quoted at an average daily rate around €560, but that is a headline for a handful of top addresses, not a norm. On the Côte d'Azur, outside Nice we found no reliable published yield, and prime addresses trade on rarity rather than rent. Treat any single number you are shown for these markets as a sales figure.
Gross versus net: what eats the yield
All the numbers above are gross. Taking out costs and tax typically costs 1.5 to 2 percentage points or more, so a 5.4% gross flat in Marseille is closer to 3.4%–3.9% before income tax. The main items:
- Vacancy and re-letting between tenants
- Taxe foncière, the annual property tax: the average bill is about €1,070 in 2026, and around 14% of communes raised their rate this year
- Co-ownership charges (charges de copropriété) and repairs, only part of which the tenant reimburses
- Management or letting agent fees
- Income tax and social charges on the rent (see below)
Rules that change the return
Rent control. In a number of large cities, rents for new lets are capped by a local reference system (encadrement des loyers), which has been extended to 2027. Paris is the best-known case. In a controlled city you cannot price a flat purely by the market, so check whether your target city applies it before you model the income.
Energy labels (DPE). A home with the worst label, G, can no longer be let under a new lease since 1 January 2025, label F follows on 1 January 2028 and label E on 1 January 2034. Rent increases have been frozen for F and G homes since 2022. A cheap flat with a poor label can be a trap or an opportunity, depending on the cost of renovation. Confirm the current timetable, because the rules have been debated.
Furnished versus unfurnished. Many French landlords let furnished (LMNP) for the tax treatment. A simplified micro-BIC regime gives a flat allowance of 50% on long lets and 30% on unclassified tourist lets, and the real regime lets you deduct depreciation. Since 15 February 2025 the depreciation you claimed is added back into the capital gain when you sell, and from 1 January 2026 social charges on this income rose from 17.2% to 18.6%. A proposal to cap depreciation was rejected in the 2026 Finance Act. Whether and how a non-resident can use this regime depends on the case, so ask a French adviser before you buy for it.
Tax on rental income for non-residents
Rental income from French property is taxed in France even if you live abroad. For 2026, the income tax scale for non-residents is reported as 20% up to about €29,315 of taxable income and 30% above that. On top come social charges: 7.5% for residents of the EU or EEA affiliated to another EU social security system and 17.2% for others, with 18.6% reported for some non-EEA owners in 2026. That puts the combined burden roughly between 27.5% and 37.5% for EU or EEA residents and higher for others. The exact figure depends on your situation and on tax treaties, so confirm it with a French tax adviser or fiscal representative. For taxes when you sell, see capital gains tax on a property sale in France.
Long-term let or holiday let
A long-term let gives steadier income and lower management cost. Seasonal and tourist lets can earn more but depend on season, local rules and registration, and many cities now cap the days you can let or require a number. Read short-term rental rules in France before counting on holiday income.
What to buy for which goal
- Highest yield per euro: a small or mid-sized apartment in Marseille, Montpellier or Grenoble, in a well-let district, with a decent energy label
- Stability and liquidity: Paris or Lyon, accepting a yield below 4%
- Mixed use and income: a seasonal apartment in a resort or on the Riviera, accepting a modest yield for personal use and value
- Renovation play: an older flat or house with a weak label, where the numbers only work if the renovation cost is realistic. See ruins and abandoned houses in France
Whatever the goal, check the legal side before the numbers: investment risks in France, the resale checklist and, if you borrow, mortgages for foreigners in France. Be careful with promised returns, see guaranteed rental schemes: the catch.
FAQ
What is a good rental yield in France? Around 4% to 5% gross is typical in big cities and 5% to 6% in the more affordable regional cities. After costs and tax, 2.5% to 4% net is a realistic expectation for a long-term let. Higher figures usually involve small units, renovation risk or optimistic assumptions.
Which French city has the highest yield? In the 2026 aggregator data, Grenoble, Marseille and Montpellier lead among major cities, while Paris, Lyon and Bordeaux are lowest. Compare real listings and rents for the district you are considering.
Do I pay French tax on rent if I live abroad? Yes, income from French property is taxable in France. For 2026 the non-resident income tax scale is 20% and 30%, plus social charges that depend on where you live. Ask a tax adviser.
Can I let an energy-inefficient flat? Not if it is labelled G under a new lease since 2025, and F and E follow in 2028 and 2034. Confirm the current rules and the cost of renovation first.
Does rent control apply everywhere? No. It applies in selected large cities and is extended to 2027, so check the specific city.
How we help
We shortlist French properties to your goal, model the gross and net return with realistic vacancy, charges, energy-label works and tax, and coordinate local lawyers, notaries and tax advisers. See also the France country page, best areas to buy in France and why expats love France.
This article is informational only and is not legal, tax or investment advice. Figures are indicative, come from market sources and change over time; confirm current numbers before you buy.