There is no single agreed-upon yield for a vacation rental in Eilat: published estimates range from approximately 3% gross for regular long-term rentals to 8–12% gross in marketing promotions for well-managed short-term rentals, and 5–7% net in the same promotion. The discrepancy arises because each source measures something different, so before comparing numbers, it's important to check exactly what was measured. This information is general and not investment, tax, or legal advice, and Livo does not guarantee any yield.
What Has Been Published About Eilat Vacation Rental Yields?
Three sources have published estimates for yields in Eilat, and each measures something different.
Table: Published Yield Estimates, by Source and Date (Checked on 26.10.2026)
| Source | What Was Measured | The Figure | Date |
|---|---|---|---|
| Bizportal | Regular rental, gross, article calculation | approx. 3% | 3.8.2026 |
| The Block | Expert estimate, not official data | approx. 5% | 30.5.2024 |
| TDN | Well-managed short-term rental, developer marketing promotion | 8–12% gross, 5–7% net | 7.5.2026 |
The Bizportal article calculates approximately 3% based on an average apartment price of about ₪1.75 million and an average monthly rent of about ₪4,300, noting that a significant portion of the actual yield in the city comes from short-term rentals to tourists, which require close management and are subject to seasonality. The TDN publication was written by a company that markets apartments in Eilat, and therefore it is treated as marketing data rather than research.
What's the Difference Between Gross and Net Yield?
Gross yield is annual income divided by purchase price, and net yield is what remains after expenses. The formula for gross is simple:
Gross Yield = Annual Rental Income ÷ Purchase Price
What's deducted on the way to net:
- Booking platform commissions and management fees
- Cleaning and laundry between guests
- Electricity, water, and internet
- Arnona (municipal tax), building maintenance fees, and insurance
- Maintenance and repairs
- Income tax
The gap presented in the promotion itself between 8–12% gross and 5–7% net shows how much expenses change the picture. An investor looking only at the gross sees too rosy a picture.
Why Does Occupancy Determine Yield?
Occupancy is the percentage of nights per year that the apartment was actually rented, and it is the variable that changes income more than any other. TDN mentions an average occupancy of about 45% for vacation rentals in Eilat and adds that in practice it is often higher due to peak seasons. This is unofficial data and describes an average, not a specific property.
Annual income is the price per night multiplied by the number of rented nights. Therefore, an apartment rented during peak season and left empty in winter will yield much less than the average of peak seasons. Ask the seller or management company for a real 12-month booking report, including winter months, not an average.
How to Check Yield Before Buying?
Check a specific property in five steps:
- Request actual income data for that property or an identical property in the same building, for at least 12 months.
- Separate gross from net and ask to see each expense item separately.
- Verify that short-term rental is permitted: permit, building regulations, and arnona. Units in vacation complexes are subject to their own arrangements.
- Calculate a conservative scenario, with lower-than-average occupancy and with interest if there is a mortgage.
- Consult with a lawyer and accountant before signing, including on taxes. The purchase tax threshold and VAT on apartments in Eilat are updated, and according to Walla, as of 10.6.2026, it was proposed to cancel the VAT exemption in Eilat. This is a proposal, not legislation.
The calculation itself can be done using the calculator on the Income-Generating Properties in Eilat page: enter purchase price, price per night, and occupancy, and see how much occupancy is needed for a target yield. If the result exceeds 100%, the target is not realistic with the data you entered. You can also leave your details on the page, and we will get back to you.
Is Investing in an Eilat Vacation Rental Worth It?
The answer depends on the property, purchase price, management, and seasonality, and there is no single figure. According to published articles, risks include interest rates, security situation, short-term rental restrictions, and owners living far from the property. Additionally, a yield that appears higher than average warrants more careful scrutiny, not less.
If you are also checking the income side, it is recommended to see what an actual booking looks like: Couples' Vacation Rentals in Eilat and Family Vacation Rentals for 6 Guests show what guests look for in an apartment and what details appear on a property page.
For financing questions, see Mortgage for an Investment Apartment in Eilat.
The information on this page is general, based on public publications cited alongside it, and is not investment, tax, or legal advice. Livo does not guarantee any yield. Before any transaction, it is recommended to consult with a lawyer and an accountant.
FAQ
How much yield can you earn from an Eilat vacation rental?
There is no single official figure. A marketing promotion from a development company in May 2026 shows 8–12% gross for well-managed apartments and about 5–7% net, and a Bizportal article from August 2026 calculated about 3% gross from regular rentals. An expert quoted in The Block in May 2024 estimated about 5%. The range is wide because each source measures something different.
What's the difference between gross and net yield for a vacation rental?
Gross yield is the annual income divided by the purchase price. Net yield is calculated after expenses such as management, cleaning, platform commissions, electricity, arnona, building maintenance fees, maintenance, and tax.
Is occupancy high for vacation rentals in Eilat?
TDN's marketing promotion from May 2026 mentions an average occupancy of about 45% and adds that in practice it is sometimes higher. This is unofficial data, so request actual occupancy data for the property itself for at least 12 months.
Can you rely on a yield promised in an advertisement?
Not without checking. Request actual income for that property or an identical property, separate gross from net, and check who is promising, why, and what happens if the yield is not realized.
Where can I check the yield for a specific property?
On the Income-Generating Properties in Eilat page, use the yield calculator: enter the purchase price, price per night, and occupancy to see how much occupancy is needed for a target yield. This information is general and not investment, tax, or legal advice.
עודכן לאחרונה: 27 באוקטובר 2026