Authored by the expert who managed and guided the team behind the Tanzania Property Pack
Yes, the analysis of Dar es Salaam's property market is included in our pack
Getting rental income from a property in Dar es Salaam is absolutely possible for foreigners, but there are specific legal structures and practical steps you need to understand first.
We constantly update this blog post with the latest data about the Dar es Salaam rental market, so you can trust the numbers you see here reflect the current reality.
This guide covers everything from legal ownership pathways to realistic yield expectations, neighborhood performance, and short-term rental regulations in Tanzania's largest city.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Dar es Salaam.
Insights
- Foreigners in Dar es Salaam cannot hold freehold land titles, but can control property through derivative rights or long leases that function similarly for rental purposes.
- Mid-market apartments in Dar es Salaam deliver gross rental yields between 8% and 14% in 2026, significantly outperforming the 4% to 8% yields typical of high-end expat neighborhoods.
- Vacancy rates in Dar es Salaam jump from under 5% for properties rented below $200 per month to roughly 20% for units priced above $400, making pricing strategy critical.
- Short-term rentals in Dar es Salaam average only 33% occupancy with a $68 nightly rate, meaning long-term renting often delivers more predictable income despite lower headline numbers.
- The Tanzania Revenue Authority requires withholding tax on rental income, with tenants typically responsible for deducting and remitting 10% for resident landlords or 15% for non-residents.
- Security deposits in Dar es Salaam commonly reach up to three months of rent, which helps landlords manage the cash flow gaps created by occasional vacancy periods.
- Neighborhoods like Sinza, Kijitonyama, and Ubungo offer stronger yields than premium areas because property prices remain moderate while rental demand stays consistently high.
- Operating a short-term rental in Dar es Salaam may require registration and licensing as a tourism accommodation facility under Tanzania's Tourism Act framework.
Fact-checked and reviewed by our local expert
Grace Makoye 🇹🇿
Manager of Operations, Zinza Real Estate
Can I legally rent out a property in Dar es Salaam as a foreigner right now?
Can a foreigner own-and-rent a residential property in Dar es Salaam in 2026?
As of early 2026, foreigners can legally hold and rent out residential property in Dar es Salaam, but they cannot own land outright like Tanzanian citizens because all land is vested in the President under the Land Act.
Instead, foreign investors typically access property through derivative rights, long-term subleases, or investment-linked arrangements facilitated by the Tanzania Investment Centre.
The most common restriction is that non-citizens cannot obtain a standard Certificate of Occupancy, so purchases must be structured through developments that offer lease or sublease arrangements compatible with foreign ownership.
If you're not a local, you might want to read our guide to foreign property ownership in Dar es Salaam.
Do I need residency to rent out in Dar es Salaam right now?
You do not need to be a Tanzanian resident to rent out your property in Dar es Salaam, as long as your ownership structure legally permits you to grant tenancy rights.
However, you should expect to need a tax identification number with the Tanzania Revenue Authority because rental income is subject to withholding tax and you will need to be identifiable for filings.
While a local bank account is not strictly required by law, it is strongly recommended because tenants pay in Tanzanian shillings and local accounts make rent collection, management payments, and tax administration much simpler.
Managing a Dar es Salaam rental remotely is entirely feasible through a local property manager who handles viewings, tenant screening, rent collection, and compliance paperwork on your behalf.
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What rental strategy makes the most money in Dar es Salaam in 2026?
Is long-term renting more profitable than short-term in Dar es Salaam in 2026?
As of early 2026, long-term renting in Dar es Salaam is generally the simpler and more reliable strategy, while short-term rentals can generate higher revenue but come with significantly more operational complexity and compliance requirements.
A well-managed long-term rental might generate $6,000 to $9,600 per year (TZS 15 to 24 million, or EUR 5,500 to 8,800) for a mid-range apartment, while a comparable short-term rental could theoretically earn $8,000 to $12,000 annually but loses much of that advantage to higher vacancy, management fees, and utility costs.
Short-term renting tends to outperform financially only in premium locations like Masaki, Oyster Bay, and Msasani where expat and business traveler demand is concentrated and where furnished, serviced units command strong nightly rates.
What's the average gross rental yield in Dar es Salaam in 2026?
As of early 2026, the average gross rental yield for residential buy-to-let properties in Dar es Salaam falls between 8% and 12%, depending on property type and location.
The realistic range spans from about 4% to 8% in high-end expat neighborhoods like Masaki and Oyster Bay, up to 13% to 17% for well-located mid-market apartments in areas like Sinza or Kijitonyama.
Smaller units like one-bedroom apartments and studios typically achieve the highest gross yields in Dar es Salaam because their lower purchase prices attract steady demand from young professionals and small households.
By the way, we have much more granular data about rental yields in our property pack about Dar es Salaam.
What's the realistic net rental yield after costs in Dar es Salaam in 2026?
As of early 2026, net rental yields in Dar es Salaam typically range from 5% to 9% for long-term rentals and 3% to 8% for short-term rentals after accounting for all operating costs.
Most landlords in Dar es Salaam realistically experience net yields between 5% and 7%, with higher figures achievable mainly in mid-market neighborhoods where vacancy stays low and management costs remain modest.
The three cost categories that eat into gross yields most significantly in Dar es Salaam are vacancy losses (especially for units priced above $400 per month), withholding tax obligations to TRA, and infrastructure reliability costs like backup generators and water storage systems.
You might want to check our latest analysis about gross and net rental yields in Dar es Salaam.
What monthly rent can I get in Dar es Salaam in 2026?
As of early 2026, typical monthly rents in Dar es Salaam are around $250 to $300 (TZS 620,000 to 740,000, or EUR 230 to 275) for a studio, $250 to $400 (TZS 620,000 to 990,000, or EUR 230 to 365) for a one-bedroom apartment, and $450 to $800 (TZS 1.1 to 2 million, or EUR 410 to 730) for a two-bedroom apartment.
A decent studio in Dar es Salaam can realistically rent for $200 to $280 per month (TZS 500,000 to 690,000, or EUR 185 to 255) at entry level, depending on location and building condition.
A typical mid-range one-bedroom apartment in Dar es Salaam fetches $300 to $400 per month (TZS 740,000 to 990,000, or EUR 275 to 365), with newer buildings and better locations commanding the higher end.
Two-bedroom apartments in Dar es Salaam's mid-to-high market rent for $500 to $750 per month (TZS 1.2 to 1.85 million, or EUR 455 to 685), with expat-belt locations like Masaki pushing above $1,000.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Dar es Salaam.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Tanzania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Dar es Salaam in 2026?
What's the total "all-in" monthly cost to hold a rental in Dar es Salaam in 2026?
As of early 2026, the total monthly holding cost for a typical Dar es Salaam rental property (excluding any mortgage) runs between $100 and $300 (TZS 250,000 to 740,000, or EUR 90 to 275) for long-term rentals, and $200 to $500 (TZS 500,000 to 1.2 million, or EUR 185 to 455) for short-term rentals.
The realistic range covering most standard rental properties in Dar es Salaam is $120 to $350 per month (TZS 300,000 to 865,000, or EUR 110 to 320), depending on building quality and whether you operate as long-term or short-term.
Property management fees tend to be the largest single cost category in Dar es Salaam, typically running 8% to 12% of collected rent for long-term rentals and 20% to 30% for professionally managed short-term rentals.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Dar es Salaam.
What's the typical vacancy rate in Dar es Salaam in 2026?
As of early 2026, typical vacancy rates in Dar es Salaam range from under 5% for affordable units rented below $200 per month to around 20% for premium units priced above $400 per month.
Landlords in Dar es Salaam should budget for roughly one month of vacancy per year in the mid-market segment, but two to three months per year in the higher-end expat-focused market where tenant turnover is more pronounced.
The main factor driving vacancy differences across Dar es Salaam neighborhoods is the rent level relative to local incomes, with areas like Sinza and Kijitonyama filling quickly while Masaki and Oyster Bay units can sit empty longer waiting for the right tenant.
Tenant turnover in Dar es Salaam tends to peak around December and January when expat contracts often end and families relocate, creating a seasonal vacancy spike in premium neighborhoods.
We have a whole part covering the best rental strategies in our pack about buying a property in Dar es Salaam.
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Where do rentals perform best in Dar es Salaam in 2026?
Which neighborhoods have the highest long-term demand in Dar es Salaam in 2026?
As of early 2026, the top three neighborhoods with the highest overall long-term rental demand in Dar es Salaam are Sinza, Mikocheni, and Mbezi Beach, where mid-range pricing meets strong access to employment centers.
Families in Dar es Salaam gravitate toward Mbezi Beach, Regent Estate, and Kawe because these neighborhoods offer security, parking, reliable utilities, and proximity to international schools.
Students seeking rentals in Dar es Salaam concentrate around Mlimani near the University of Dar es Salaam, Ubungo, and Sinza, where affordable rooms and bedsitters are plentiful.
Expats and international professionals in Dar es Salaam predominantly rent in Masaki, Oyster Bay, and Msasani, accepting higher rents in exchange for security, walkability to embassies, and proximity to upscale amenities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Dar es Salaam.
Which neighborhoods have the best yield in Dar es Salaam in 2026?
As of early 2026, the top three neighborhoods for rental yield in Dar es Salaam are Sinza, Kijitonyama, and Ubungo, where property prices remain moderate while rental demand stays consistently strong.
Gross rental yields in these top-yielding Dar es Salaam neighborhoods typically range from 10% to 15%, compared to just 4% to 8% in premium areas like Masaki and Oyster Bay.
These neighborhoods achieve higher yields primarily because they attract broad tenant pools including young professionals, civil servants, and small families who prioritize affordability over prestige, keeping vacancy low and demand stable.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Dar es Salaam.
Where do tenants pay the highest rents in Dar es Salaam in 2026?
As of early 2026, the top three neighborhoods where tenants pay the highest rents in Dar es Salaam are Masaki, Oyster Bay, and Msasani, with Upanga also commanding premium rates.
A standard two-bedroom apartment in these premium Dar es Salaam neighborhoods typically rents for $800 to $1,500 per month (TZS 2 to 3.7 million, or EUR 730 to 1,370), with luxury units exceeding $2,000.
These neighborhoods command Dar es Salaam's highest rents because they combine waterfront or peninsula locations with established security infrastructure, reliable power and water, and walking distance to embassies and international business offices.
The typical tenant profile in these highest-rent Dar es Salaam neighborhoods includes embassy staff, NGO workers, multinational executives, and their families who have housing allowances and prioritize turnkey convenience over price.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Tanzania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Dar es Salaam in 2026?
What features increase rent the most in Dar es Salaam in 2026?
As of early 2026, the top three property features that increase monthly rent most in Dar es Salaam are reliable backup power (generator or inverter), a dedicated water storage tank with pump, and secure parking within a gated compound.
Reliable power backup alone can add a 10% to 20% rent premium in Dar es Salaam because frequent outages make generator-ready properties significantly more attractive to professional tenants.
One commonly overrated feature in Dar es Salaam is high-end kitchen finishes, as most tenants care far more about power and water reliability than imported countertops or premium appliances.
An affordable upgrade that delivers strong returns for Dar es Salaam landlords is installing a quality water tank and pressure pump system, which costs relatively little but eliminates a daily frustration tenants will pay extra to avoid.
Do furnished rentals rent faster in Dar es Salaam in 2026?
As of early 2026, furnished apartments in Dar es Salaam's expat neighborhoods like Masaki and Oyster Bay typically rent one to three weeks faster than unfurnished units because incoming professionals want move-in ready homes.
Furnished rentals in Dar es Salaam generally command a 15% to 30% rent premium over comparable unfurnished units, though this advantage shrinks in mid-market areas where tenants often bring their own furniture.
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How regulated is long-term renting in Dar es Salaam right now?
Can I freely set rent prices in Dar es Salaam right now?
Landlords in Dar es Salaam have substantial freedom to set initial rent prices at whatever level the market will bear, with no government-mandated rent control or price caps on residential leases.
Rent increases during a tenancy in Dar es Salaam are also generally unregulated, though they are typically negotiated at lease renewal and any large increase risks losing a tenant in a market where vacancy above $400 per month already runs around 20%.
What's the standard lease length in Dar es Salaam right now?
The most common lease length for residential rentals in Dar es Salaam is 12 months, though six-month agreements are also used in more flexible mid-market arrangements.
Landlords in Dar es Salaam can legally require a security deposit of up to three months' rent, which for a typical two-bedroom apartment means $1,500 to $2,400 (TZS 3.7 to 5.9 million, or EUR 1,370 to 2,190) held as security.
Security deposits in Dar es Salaam are typically returned at the end of the tenancy minus any legitimate deductions for unpaid rent, damages, or utility arrears, though formal escrow requirements are not standard practice.
We made this infographic to show you how property prices in Tanzania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Dar es Salaam in 2026?
Is Airbnb legal in Dar es Salaam right now?
Operating Airbnb-style short-term rentals in Dar es Salaam is not explicitly banned, but your property may be classified as a tourism accommodation facility which triggers registration and licensing requirements under Tanzania's Tourism Act.
If your short-term rental falls under the tourism accommodation framework, you need to register with the relevant authorities and obtain a license through the process outlined in the Tourism Accommodation Facility Regulations of 2015.
Tanzania does not currently impose a nationwide cap on the number of nights per year a property can be rented short-term, though specific licensing conditions may apply once you register.
Operating an unlicensed accommodation facility in Dar es Salaam can result in fines, closure orders, or other enforcement actions under the Tourism Act, though enforcement intensity varies.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Dar es Salaam.
What's the average short-term occupancy in Dar es Salaam in 2026?
As of early 2026, the average annual occupancy rate for short-term rentals in Dar es Salaam is approximately 33%, meaning properties are booked roughly one night out of every three on average.
The realistic occupancy range for most short-term rentals in Dar es Salaam spans from about 20% for poorly positioned listings to 50% or higher for professionally managed properties in prime locations like Masaki and Msasani.
Short-term rental occupancy in Dar es Salaam peaks during the dry season months of June through October and around major holidays, when both tourism and business travel increase significantly.
The lowest occupancy months for Dar es Salaam short-term rentals are typically during the heavy rainy season from March through May, when leisure travel drops and some business activity slows.
Finally, please note that you can find much more granular data about this topic in our property pack about Dar es Salaam.
What's the average nightly rate in Dar es Salaam in 2026?
As of early 2026, the average nightly rate for short-term rentals in Dar es Salaam is approximately $68 (TZS 168,000, or EUR 62), though this varies significantly by location and property quality.
The realistic nightly rate range covering most Dar es Salaam short-term rental listings runs from about $35 to $150 per night (TZS 86,000 to 370,000, or EUR 32 to 137), with luxury properties in Masaki and Oyster Bay exceeding $200.
During peak season in Dar es Salaam, nightly rates typically run $20 to $40 higher than off-season (TZS 50,000 to 100,000, or EUR 18 to 37), with the premium most pronounced for waterfront and well-reviewed properties.
Is short-term rental supply saturated in Dar es Salaam in 2026?
As of early 2026, the short-term rental market in Dar es Salaam is competitive but not fully saturated, with around 874 active listings citywide and average occupancy of only 33% suggesting room remains uneven across the market.
The number of active short-term rental listings in Dar es Salaam has been growing gradually as more property owners recognize the revenue potential, though growth is concentrated in established tourist and expat areas.
The most oversaturated neighborhoods for short-term rentals in Dar es Salaam are Masaki, Msasani, and Oyster Bay, where listing density is high and competition for the limited pool of short-term guests is intense.
Neighborhoods in Dar es Salaam that still have room for new short-term rental supply include Mikocheni, Mbezi Beach, and parts of Kawe, where demand exists but fewer professional STR operators have established a presence.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Dar es Salaam, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Tanzania Land Act (Cap. 113) | It's the primary law governing land rights and foreign ownership restrictions in Tanzania. | We used it to explain why foreigners cannot own land outright. We also used it to clarify the legal basis for derivative rights and lease structures. |
| Tanzania Investment Centre (TIC) | TIC is the official investment authority explaining legal channels for foreign investors. | We used it to describe the specific instruments foreigners use to acquire property. We used it to translate legal concepts into practical buying steps. |
| Housing Finance Africa (HFA) | HFA is a respected housing research institution with detailed Dar es Salaam survey data. | We used it for rent levels, vacancy rates by price band, and yield calculations. We used it as the backbone for our budgeting and neighborhood analysis. |
| Bank of Tanzania | It's the central bank's official exchange rate table. | We used it to convert all USD figures to TZS accurately. We used it to keep all currency conversions consistent throughout the article. |
| Tanzania Revenue Authority (TRA) | TRA is the tax authority defining withholding tax rules for rental income. | We used it to explain the tenant withholding mechanism. We used it to clarify tax obligations for foreign landlords. |
| Tanzania Tourism Act | It's the law behind registration and licensing of tourism accommodation facilities. | We used it to explain why short-term rentals may require licensing. We used it to frame compliance requirements for Airbnb-style operations. |
| Tourism Accommodation Facility Regulations (2015) | These are the operational rules for registering and licensing accommodation facilities. | We used it to outline the registration-to-license pathway. We used it to support our STR compliance recommendations. |
| AirROI | It's a specialized STR analytics provider with consistent methodology for occupancy and ADR. | We used it to estimate short-term rental occupancy, nightly rates, and listing counts. We used it as a quantified private-sector check on market conditions. |
| Tanzania National Bureau of Statistics | NBS is the official statistics agency with authoritative population and urban data. | We used it to support demand driver analysis for Dar es Salaam's rental market. We used it to ground neighborhood population insights. |
| World Bank | The World Bank publishes standardized, citable urbanization indicators. | We used it to confirm Tanzania's urbanization trend supporting rental demand. We used it to keep our macro analysis evidence-based. |
| PwC Tax Summaries | PwC provides structured summaries of local tax rules from a trusted professional source. | We used it to cross-check investment income and non-resident taxation treatment. We used it as a triangulation layer alongside Tanzanian legal sources. |
We have made this infographic to give you a quick and clear snapshot of the property market in Tanzania. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Related blog posts
- Is now a good time to invest in property in Dar es Salaam?