Wondering where the best places are to invest in Los Cabos? With its booming tourism, high nightly rates, and growing demand for Airbnb in Los Cabos, the region has become one of Mexico’s strongest markets for vacation rentals.
From Cabo San Lucas to San José del Cabo, each neighborhood offers unique opportunities, whether you want attractive annual returns, consistent occupancy, or long-term value growth. This guide highlights the five best places to invest, explains why the market is thriving, and shares clear numbers on potential rental income.
Why Invest in Vacation Rentals in Los Cabos?
Los Cabos is one of the most dynamic real estate markets in Mexico, combining international visibility with steady rental demand. The mix of luxury travelers, families, and long-term visitors ensures consistent income potential.
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Tourism growth: From about 2.8 million visitors in 2021 to nearly 3.9 million in 2023.
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Strong air connectivity: Over 7 million passengers each year arrive through Los Cabos International Airport.
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High nightly income: Average stays earn 200 to 300 USD (≈3,600 to 5,400 MXN) per night. This is known in the industry as the average nightly rate (ADR).
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Annual rental income: Properties of 2 to 3 bedrooms typically earn 40,000 to 65,000 USD (≈720,000 to 1,170,000 MXN) per year.
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Return on Investment (ROI), or annual return: Depending on the neighborhood, investors achieve between 10% and 19% yearly returns.
👉 Want expert support managing your property? Learn more about Property Management in Los Cabos.
Key Market Insights for Airbnb Investors
Recent market data shows that well-managed properties in Los Cabos consistently outperform many other beach destinations. Occupancy levels, property size, and amenities make a major difference in profitability.
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Tasa de ocupación (occupancy rate): Properties average between 43% and 64% of nights booked throughout the year.
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Best property sizes: Three-bedroom homes perform best in Cabo San Lucas and El Tezal, while two-bedroom units are most successful in the Tourist Corridor, Cabo Bello, and San José del Cabo.
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Strong rental income compared to property cost: Buyers in Los Cabos often achieve better returns than investors in U.S. coastal markets.
💡 Tip: A well-presented property attracts more bookings. Discover our Interior Design Steps to learn how thoughtful design can raise your rental income.
Best Neighborhoods to Invest in Los Cabos
Cabo San Lucas – The Investment Hotspot
Cabo San Lucas is the most active area of Los Cabos tourism. With its marina, nightlife, and luxury resorts, it also delivers some of the strongest returns for vacation rental investors.
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Approx. 1,175 active listings
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Best property type: Three-bedroom homes
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Median property price: 330,000 USD (≈5.6M MXN)
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Average annual rental income: 64,500 USD (≈1.1M MXN)
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Annual return (ROI): Around 18% to 19%
High nightly rates and strong visibility make Cabo San Lucas the top choice for investors who want both profitability and international demand.
👉 Looking to attract more travelers? Explore What to Do in Los Cabos.
El Tezal – Rising Star Near Cabo San Lucas
El Tezal, located just outside Cabo San Lucas, is a residential area that continues to grow in popularity. Families and long-term guests appreciate its quieter atmosphere while investors value its balance between price and returns.
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Approx. 113 active listings
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Best property type: Three-bedroom units
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Median property price: 329,000 USD (≈5.6M MXN)
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Average annual rental income: 55,800 USD (≈960,000 MXN)
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Annual return (ROI): Around 17%
For those seeking growth potential outside the busy tourist core, El Tezal provides a promising mix of value and profitability.
Tourist Corridor – Scenic and Profitable
The Tourist Corridor connects Cabo San Lucas and San José del Cabo, offering oceanfront villas, golf courses, and luxury communities. It attracts international travelers willing to pay higher nightly rates for scenic views and resort-style living.
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Approx. 838 active listings
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Best property type: Two-bedroom units
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Median property price: 375,000 USD (≈6.4M MXN)
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Average annual rental income: 49,600 USD (≈850,000 MXN)
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Annual return (ROI): Around 13%
Although property costs are higher here, steady occupancy and premium guests make the Tourist Corridor a safe investment choice.
Cabo Bello – Boutique Market Appeal
Cabo Bello is a gated community close to the beach, ideal for couples and families looking for peace and privacy. Its scale is smaller than other neighborhoods but it delivers consistent rental performance.
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Approx. 160 active listings
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Best property type: Two-bedroom units
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Median property price: 328,000 USD (≈5.6M MXN)
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Average annual rental income: 41,900 USD (≈720,000 MXN)
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Annual return (ROI): Around 12% to 13%
With its boutique feel and reliable demand, Cabo Bello is an attractive option for investors looking for a more tranquil market.
San José del Cabo – Culture Meets Profit
San José del Cabo is known for its Art District, historic center, and culinary scene. It draws a different type of traveler than Cabo San Lucas, often those seeking culture, gastronomy, and longer stays.
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Approx. 415 active listings
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Best property type: Two-bedroom units
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Median property price: 328,000 USD (≈5.6M MXN)
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Average annual rental income: 33,500 USD (≈580,000 MXN)
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Annual return (ROI): Around 10%
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Occupancy rate: Up to 64%, one of the highest in Los Cabos
Although the annual return is slightly lower here, higher occupancy and cultural appeal make San José del Cabo a stable and attractive market.
Reasons Investors Choose Los Cabos Over Other Markets
Los Cabos offers a combination of profitability and lifestyle benefits that few destinations can match.
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International visibility and repeat visitors from the U.S. and Canada
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Year-round appeal with peaks during winter
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Premium travelers willing to pay higher nightly rates
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Better value compared to similar properties in the U.S.
👉 Hear from real property owners: Read Testimonials
How to Maximize Your Airbnb Returns in Los Cabos
The difference between an average rental and a top-performing one often comes down to management, design, and service.
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Professional property management increases occupancy and simplifies operations. Learn more: How to Choose the Right Property Management Company.
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Interior design and staging raise nightly rates and reviews. Explore our Interior Design services.
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Long-term strategies grow property value. See how we help owners: Elevating Investing Properties.
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Guest experience drives repeat bookings. Check our Google Reviews.
Conclusion
From the strong rental income of Cabo San Lucas to the cultural appeal of San José del Cabo, Los Cabos offers investors attractive annual returns and diverse opportunities. With steady tourism growth, solid occupancy, and premium nightly rates, this destination remains one of Mexico’s most reliable markets for Airbnb and vacation rental investment.
👉 Whether you are considering your first property or looking to optimize an existing one, Vacation Los Cabos can help maximize your property’s returns through management, design, and strategic marketing.
Contact us today to learn how we can help you succeed with your investment property in Los Cabos.
