What does "good" really mean?
A "good" rental return is not a single universal number. It depends on price, net rent, financing, and risk. In Morocco, you should separate gross yield, net yield, and cash-on-cash ROI to define true performance.
This article provides data-backed 2025-2026 benchmarks and shows how to adapt them to your profile. For a fast estimate, use the ROI calculator and compare your result to the ranges below.
Three levels of return to compare
Gross yield is annual rent divided by purchase price. It is useful for screening, but it ignores expenses and taxes. Net yield subtracts recurring costs (HOA, maintenance, local taxes, insurance).
Cash-on-cash ROI measures return on your own cash. It includes acquisition costs and financing. It is the most relevant metric when you use a mortgage.
Our rental ROI calculator gives you all three levels from one simulation, making comparisons much easier.
National benchmark in 2026
Global Property Guide estimates Morocco's average gross yield around 7.31% in Q1-2026. This is a helpful benchmark, but it hides major differences across cities and property types.
As a rule of thumb, a gross yield below 6% usually requires a strong justification, such as a premium location or a long-term capital strategy.
Use our calculator to convert gross yield into net and cash-on-cash results that reflect your actual deal.
City differences: Casablanca, Rabat, Marrakesh, Tangier
Global Property Guide data show clear gaps. Casablanca offers gross yields around 7.8% to 9.0% by apartment size, with a city average near 8.3%. Rabat is lower with an average around 6.9%. Marrakesh and Tangier often show higher ranges depending on property type.
These differences are mostly driven by the rent-to-price ratio. In Casablanca, prices are higher but demand is structural. In Tangier, prices can be lower relative to rent, supporting higher yields.
The key is to compare like-for-like assets and run the cash-on-cash result in the ROI calculator.
What threshold should a residential deal target?
In practice, a gross yield around 7% to 9% is considered solid for urban residential property in Morocco. After expenses and vacancy, this often becomes a 4% to 6% net yield.
If you use a mortgage, cash-on-cash can be lower, especially with a high down payment. Still, positive cash flow is usually the strongest indicator of resilience.
Set a minimum target in the ROI calculator and filter out deals that fail to meet it.
Acquisition costs: the big hidden drag
Morocco acquisition costs typically add around 6.7% to 7% to the purchase price. This cash outlay reduces cash-on-cash ROI immediately.
A gross yield of 8% can drop to 5% net, then lower on a cash-on-cash basis once fees are included. Ignoring these costs is the most common ROI mistake.
Our calculator includes acquisition costs by default to prevent this overestimation.
Financing and lending rates
Bank Al-Maghrib's lending rate survey shows mortgage rates around 5.19% in Q4-2025. That means monthly payments can consume a large share of net rent if the down payment is small.
Higher rates compress cash-on-cash ROI. That is why you should test multiple scenarios: higher down payment, longer term, or more conservative rent.
The ROI calculator helps you stress test these scenarios and see if the deal remains viable.
Return vs operational risk
Higher returns often come with more management. Short-term rentals can lift income, but they introduce occupancy risk, cleaning costs, and active management.
Long-term rentals are more stable but sometimes less profitable. A "good" yield must always be balanced against time, effort, and income stability.
If you are unsure, model both paths in the calculator and compare cash-on-cash.
How to set your target using the calculator
Start with purchase price and acquisition fees. Add conservative rent, realistic expenses, and a market-rate mortgage.
The result shows net yield and cash-on-cash ROI. Compare it with the benchmarks above to decide if the deal is competitive.
If the result is weak, renegotiate price, adjust the rent assumption, or change area. The ROI calculator is designed for these quick iterations.
Sources (2025-2026)
Use our Morocco rental profitability calculator
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