Is Investing in Airbnb Properties in Puerto Rico Worth It?

Short-term rentals have exploded across Puerto Rico, and for good reason. With its tropical climate, year-round tourism, and favorable tax laws, Puerto Rico has become a magnet for Airbnb investors from around the world.

Best Locations

Top-performing markets include:

• San Juan (Condado, Old San Juan)
• Rincón
• Luquillo and Fajardo
• Palmas del Mar (Humacao)

These areas offer proximity to beaches, attractions, nightlife, and consistent tourist demand.

However, Puerto Rico has hidden gems throughout the island. Towns like Cabo Rojo, Isabela, Naguabo, Arecibo, and even inland areas like Adjuntas or Utuado offer eco-tourism, surfing, mountain retreats, and authentic cultural experiences. With the right strategy, nearly any region can become a profitable Airbnb investment.

Benefits of Airbnb Investment

• High occupancy during peak seasons and weekends year-round
• Flexibility: Use it for personal vacation + rent when vacant
• Attractive returns in the right location with good management
• Exemptions available through Act 60 (formerly Act 20/22) if qualified

Challenges to Consider

• You must register your rental with the Puerto Rico Tourism Company
• Collect and report room tax (Hacienda)
• Maintain quality and cleanliness
• Compete with other listings—pricing and presentation matter

Final Takeaway

If you’re willing to manage it actively or hire a co-host, Airbnb rentals in PR can yield high returns—especially in coastal, walkable, or resort-style areas. Due diligence, permits, and market analysis are key.

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