Most Zanzibar rental projections you will see quote double-digit returns. Some of those numbers are real. Most are gross figures, calculated before tax, management and empty nights. This guide shows what comes off the headline number and what a sensible net figure looks like.
Independent estimates put gross rental yields in Zanzibar at roughly 6% to 8.5%, with net yields of about 4% to 6.5% once running costs are paid. Some villa segments test higher on paper. Developer projections of 12% or more are usually quoted before costs, so treat them as a ceiling, not a forecast.
Because people are measuring different things. A yield can be gross or net, projected or achieved, and based on a full year or on the busiest months.
One analysis by The Africanvestor, which divides asking rents by asking prices across listed villas, finds gross yields of 7.3% to 11.4%. A local agency analysis puts typical gross yields at about 6% to 8.5% and notes that developer projections of 12% to 23% tend to assume optimistic occupancy and leave out running costs.
Neither is wrong. They simply answer different questions. The number that matters to you is net income after every cost, divided by the full price you paid.
Demand is growing. Zanzibar recorded 917,167 international arrivals in 2025, up from 736,755 in 2024, according to official figures reported by The Citizen. That is growth of nearly 25% in a single year. December 2025 alone brought 100,729 visitors.
More visitors do not automatically mean full calendars, though. The supply of holiday rentals is growing too. Short-let data from AirROI, an independent analytics service, gives these estimates for the year to July 2026:
| Area | Average occupancy | Note |
|---|---|---|
| Zanzibar town | 25.5% | 180 listings, about US$97 a night |
| Kendwa (north) | 29.5% | Beach area near Nungwi |
| Dongwe (south-east) | 42.9% | Smaller, higher-end sample |
These samples are small, so read them as a direction, not a promise. They do show that a well-run property in the right place can far outperform an average listing, and that most listings are empty for much of the year.
Earnings follow the weather and the European holiday calendar. AirROI's data shows August as the strongest month and May as the weakest. May sits inside the long rains, which run from March to May. December is also busy, and most visitors come from Europe.
For an investor, this means income arrives unevenly. Plan your cash flow around a quiet spring, not an average month.
These are the main deductions between the headline figure and the money you keep:
Here is an illustration, not a forecast. Take The Hills Nungwi 2 Bedroom Residence, listed at US$165,375. Suppose it earns a gross yield of 8% from holiday lets, at the upper end of the independent range.
| Line | US$ per year |
|---|---|
| Gross rental income (8%) | 13,230 |
| Less hotel levy at 15% | -1,984.50 |
| Less management at 20% | -2,646 |
| Before service charges and maintenance | 8,599.50 |
That is about 5.2% before service charges, maintenance, licensing and furnishing. It lands inside the independent net range of 4% to 6.5%. A smaller unit such as the Raha 1 Bedroom Apartment at US$132,900 needs less capital, but the same deductions apply in the same proportions.
Run this sum on any property you are considering, using the seller's own gross figure. If the net number still works, the investment case may be sound.
Ask the seller or developer five questions:
Our guide on what to look for when buying property in Zanzibar covers the wider checks, and our case for investing in Zanzibar in 2026 covers the market drivers.
Start with the price. Compare per-square-metre rates in our guide to what property costs in Zanzibar, then apply the deductions above to any projection you are shown. You can browse current properties for sale in Zanzibar with the price and location on every listing.
Figures are estimates and published rates as of September 2026. Occupancy, prices and tax rules change. Past or projected income is not a guarantee of future returns. Take independent financial advice, and legal advice from a Tanzanian lawyer licensed in Zanzibar, before you buy.
