Tanzania Rental Yield Calculator

Buy-to-let in Tanzania — what's a healthy yield?

Rental yield is the most useful single metric for assessing an investment property. Tanzania's market generally offers gross yields of 6–11%, but the net yield (after vacancy, expenses and the 10% withholding tax on rent) is what actually pays your bills.

What's a good yield in Tanzania?

• Premium Dar (Masaki, Oyster Bay): 5–7% gross — capital growth dominates.
• Mid-Dar (Mikocheni, Kinondoni): 7–9% gross — best balance.
• Suburb / outer ring (Kigamboni, Kinondoni Mkwajuni): 9–11% gross — highest yield, lower capital growth.
• Upcountry (Arusha, Mwanza, Dodoma): 6–10% gross.
• Holiday / short-let (Zanzibar): 12–18% gross but high seasonality.

Things that eat into your yield

• Vacancy — budget 1–2 months/year (8–17%).
• Annual land rent — see Land Rent.
• Property maintenance — 1–2% of property value annually.
• Property management — 8–10% of rent if hands-off.
• Withholding tax 10% on rent paid by commercial tenants.
• Capital improvements — flooring, plumbing, fence — happen periodically.

Tax position for landlords

Rental income is taxable. Resident individuals pay a final 10% withholding if the tenant is corporate. Companies that own rental property add it to corporate income. Keep all repair receipts — they reduce your taxable income.

Pair with Mortgage Calculator if leveraged, Property Transfer Cost at acquisition, and Withholding Tax for tenant-deduction details.