Investment by Bedrooms: What Yields More in Montevideo? — June 2026
INGAR · · Guides
Smaller = More Profitable?
The question every investor in Montevideo asks is direct: Is it better to go for small properties that yield more, or do we aim for something larger even if it's less profitable in percentage terms? The data from June 2026 is clear.
Summary of active supply by number of bedrooms in Montevideo:
- Studios: Average price USD 110,000 to USD 180,000. Average yield: 6.8%.
- 1 bedroom: Average price USD 130,000 to USD 220,000. Average yield: 6.2%.
- 2 bedrooms: Average price USD 200,000 to USD 350,000. Average yield: 4.9%.
- 3+ bedrooms: Average price USD 350,000 to USD 600,000+. Average yield: 3.8%.
The trend is clear: the more bedrooms, the lower the gross yield. Studios and 1-bedroom apartments are the most profitable options in percentage terms. But there's an important detail: this doesn't mean they're better investments in absolute value. A studio that yields 6.8% annually generates less monthly income than a 3-bedroom that yields 3.8% but costs three times more.
Studios and 1-Bedroom Apartments
Small apartments are the talisman of investors with limited capital. Here's the current supply ranked by profitability:
| Neighborhood | Sale Price | Rent | Yield |
|---|---|---|---|
| Cordón | USD 145,000 | USD 950 | 7.9% |
| Palermo | USD 155,000 | USD 1,100 | 8.5% |
| Villa Biarritz | USD 165,000 | USD 1,050 | 7.6% |
| Centro | USD 120,000 | USD 800 | 8.0% |
| Tres Cruces | USD 138,000 | USD 900 | 7.8% |
Advantages: These apartments have the highest yield in the market. Tenant turnover is faster (young people, frequent job or relationship changes), which allows you to adjust prices quickly during upward cycles. Vacancy is low because there's always demand. If you buy in Palermo or Cordón, you can sell quickly.
Disadvantages: The absolute value of the rent is low. A studio in Palermo that costs USD 155,000 generates USD 1,100 monthly; deducting expenses (USD 150-200), taxes and maintenance, you're left with USD 800 net. Appreciation is slower than in larger properties. Also, if the tenant leaves, two months without rent hurt you more proportionally.
2 Bedrooms: The Middle Ground
This is the most demanded category in Montevideo. Young families, couples with intention of stability, professionals who need an office. Here's the current supply:
| Neighborhood | Sale Price | Rent | Yield |
|---|---|---|---|
| Pocitos | USD 280,000 | USD 1,450 | 6.2% |
| Punta Carretas | USD 310,000 | USD 1,550 | 6.0% |
| Malvín | USD 265,000 | USD 1,400 | 6.3% |
| Parque Rodó | USD 290,000 | USD 1,480 | 6.1% |
| Villa Biarritz | USD 300,000 | USD 1,500 | 6.0% |
The yield of 6.0% to 6.3% is solid. This is no accident: a 2-bedroom apartment takes longer to rent than a 1-bedroom, but once you find a tenant, they stay longer. Less turnover, less average vacancy.
Monthly profitability: In Malvín, buying at USD 265,000 and renting at USD 1,400 monthly is more sustainable. After expenses (USD 200-250), local payments, taxes and contingencies, you're left with USD 950-1,050 monthly net. These are numbers that multiply if you have a portfolio.
Liquidity: A 2-bedroom in Pocitos or Punta Carretas sells without drama. It's not like a studio (which sells in weeks), but it's not like a 3-bedroom either (which sometimes takes months). You have balance between liquidity and rental stability.
3+ Bedrooms: Is It Worth It?
Here's where serious money enters. Look at what supply there is:
| Neighborhood | Sale Price | Rent | Yield |
|---|---|---|---|
| Punta Gorda | USD 480,000 | USD 2,100 | 5.3% |
| Carrasco | USD 520,000 | USD 2,200 | 5.1% |
| Pocitos | USD 450,000 | USD 1,900 | 5.1% |
| Parque Rodó | USD 470,000 | USD 2,000 | 5.1% |
| Punta Carretas | USD 500,000 | USD 2,150 | 5.2% |
The yield drops to 5.1%-5.3%, almost 2 points less than studios. Is it worth it? It depends on your strategy.
Arguments in favor: A 3-bedroom in Carrasco at USD 520,000 generates USD 2,200 monthly. That's real money. Although the percentage is lower, the absolute volume is higher. Plus, these tenants are stable families, not young nomads. Vacancy is minimal, the tenant stays 3-4 years. In appreciation cycles (like we saw 2020-2024), a property in Carrasco that increases USD 50,000 in value is more significant than one in Cordón that increases USD 10,000.
Arguments against: The risk is greater. If for some reason you can't find a tenant quickly (crisis, neighborhood change), the monthly expenses hit you hard. A 3-bedroom with expenses of USD 350-400 without rent is a hole. Also, if you need quick liquidity, selling it takes more time.
Where to Put USD 100,000?
Let's simulate three practical scenarios based on real prices from June 2026:
Option 1: Studio in Cordón (USD 145,000)
USD 100,000 isn't enough for you (you'd need a bit more or a purchase at a lower price). But if you get one at USD 110,000 in Cordón, you'd be paying USD 110K for something that rents for USD 950 monthly. Yield: 10.4% annual. With the sale price, the yield drops to 8.6%, but you still have money for expenses. Gross annual rent: USD 11,400. After taxes and expenses, you're left with USD 8,500-9,000.
Option 2: 1-Bedroom in Centro (USD 120,000)
It fits within your budget. Rent: USD 800 monthly, yield 8.0%. Gross annual money: USD 9,600. Net, USD 7,000-7,500 after expenses, taxes and contingencies. It's a solid option if you want maximum yield with minimum capital.
Option 3: Half of a 2-Bedroom
USD 100,000 is exactly half the price of a 2-bedroom in Malvín (USD 265,000). You can't buy alone, but with a partner or a loan, you get into a property that rents for USD 1,400 monthly. Your share: USD 700 monthly, yield 6.3%. Annual money: USD 8,400. Net: USD 5,500-6,000.
Pure profitability ranking with USD 100K:
- 1st place: Studio in Cordón or Palermo (8.5%-10.4% yield)
- 2nd place: 1-bedroom in Centro (8.0% yield)
- 3rd place: Part of a 2-bedroom with a partner (6.0%-6.3% yield, but lower absolute money)
Conclusion
The answer depends on your profile:
If you have limited capital (USD 80K-150K) and are looking for maximum percentage return: A studio or 1-bedroom in Cordón, Palermo or Centro is your option. The 8%-10% yield is hard to pass up. Accept that monthly rent will be modest, but the percentage return is superior to the market. Check out our analysis of the best neighborhoods to invest in.
If you have medium capital (USD 250K-400K) and want balance: Two 2-bedrooms in Pocitos, Malvín or Parque Rodó give you 6.1%-6.3% yield each, diversification, and decent monthly income. Less volatility than betting everything on a studio. It's the most balanced option.
If you have high capital (USD 500K+) and think long-term: A 3-bedroom in Carrasco or Punta Gorda yields 5.1%-5.3%, but the absolute money is greater, the tenant is more stable, and appreciation tends to be better in upward cycles. It's a bet less on yield and more on wealth accumulation.
The reality: In Montevideo, studios and 1-bedrooms yield more in percentage, but generate less monthly income. 2-bedrooms are the equilibrium point. 3+ bedrooms are for wealth builders who don't need immediate monthly cash flow. Compare neighborhood by neighborhood in our detailed analysis of price vs. profitability.
Whatever you choose, invest in neighborhoods with consistent demand (Pocitos, Cordón, Malvín, Centro, Punta Carretas) and always calculate with gross yields, not net. Market numbers are generous, but real expenses are high.
Updated: June 2026. Source: INGAR analysis based on the active real estate supply in Montevideo.
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