Rental Yield and Income Performance: Dubai vs. Miami vs. New York

Rental Yield and Income Performance

Dubai
Dubai is extremely income-focused. It is normal to see gross rental yields around 6%–8% on mainstream apartments. In certain high-demand one-bedroom segments, especially mid-priced stock in strong rental locations, gross yields can reach 7%–10%. Villas generally produce lower yield (~5% gross) because villa prices exploded in recent years.

Why yields are high:

• No personal income tax on rental income
• No annual city-style property tax like in many Western markets
• Strong tenant demand from constant in-migration and population growth
  This combination means the rent you collect does not get eaten by taxes and recurring overhead the way it does in the U.S.

Miami
Miami is one of the few major U.S. coastal cities where an investor can still see real cash flow. In the right neighborhoods and buildings, a $500,000 condo renting for about $2,900/month (~$35,000/year) gives around 7% gross yield. On a broader range, Miami investors often talk about 6%–9% gross and ~4%–6% net after deducting HOA fees, building insurance, property tax, and management.
Important: short-term rentals (Airbnb-style) can push returns higher, but Miami is extremely building-specific and zoning-specific. Some towers allow nightly rentals. Some forbid anything under 30 days or 6 months. Your real yield depends on those rules and on insurance costs, which keep rising because of hurricane risk.

New York
New York — meaning mainly Manhattan condos — is not a cash-flow machine. Typical net yield (what a landlord actually keeps after common charges, taxes, and operating costs) is often 2%–3%. Hitting 3.5%–4% net is considered “good” on an entry-level or more modest unit.
Rents are extremely high in Manhattan (median and average rents are at or near record levels, with many leases closing above asking, and vacancy often below ~2%), but purchase prices and recurring costs (taxes, common charges, maintenance, compliance) are even higher. The math compresses yield.
Investors in Manhattan accept this because they are not buying only for monthly income. They are buying for prestige, diversification, access to U.S. courts, and long-term capital safety.

Yield ranking (typical investor-grade stock, not ultra-luxury trophy penthouses):

Dubai (≈6%–8% citywide, sometimes 7%–10% in certain 1BR units)

Miami (≈6%–9% gross, commonly ~4%–6% net after realistic costs)

New York (≈2%–3% net, occasionally ~4% if you’re very efficient and not ultra-prime)