Rental yield is the annual rental income of a property expressed as a percentage of its capital value. For investors and buy-to-let analysts, it is the headline return metric — though it tells only half the story because it excludes financing costs, taxes, and vacancy.
Gross yield = (annual rental income ÷ property value) × 100%. For a €350,000 home renting at €1,800/month, gross yield = (1,800 × 12) ÷ 350,000 = 6.17%.
iHouse's county-level 'gross yield' figure uses the 12-month median rent (annualised) divided by the 12-month median sale price for the same county. Both come from the same time window so the ratio is consistent.
Net yield deducts running costs from the rental income before dividing by property value. Common Irish deductions include: management agent fees, property tax (LPT), a maintenance reserve, insurance, a vacancy allowance, and income tax on rental profit (rate depends on the investor's bracket, after expenses).
Net yield is meaningfully lower than gross. The exact gap depends on the investor's costs, tax bracket, financing structure and the property itself — work it out for your own situation rather than relying on a rule-of-thumb percentage.
Across the iHouse index, gross yields in Dublin's affluent suburbs are generally lower than in rural counties, often by several percentage points. The exact spread shifts with rents and sale prices and can be looked up per-county on iHouse.
This is not a free arbitrage — high-yield areas typically have softer capital appreciation, longer vacancy periods, higher tenant turnover, and weaker local lettings markets. Sophisticated investors weigh total return (yield + capital growth − costs) rather than yield alone.
Gross. iHouse computes annualised median rent ÷ median sale price for the same county and 12-month window. Net yield depends on individual investor circumstances (financing, tax bracket, management arrangement) so iHouse does not publish a county net-yield figure.
Context-dependent. Yields generally run lower in major urban areas and higher in rural counties. A common benchmark for an unleveraged investor is comparing yield to current Irish government bond rates plus a property-risk premium — use the prevailing bond rate at the time you're evaluating.
Yields vary by property type (apartments yield more than detached), bedroom count (1–2 beds yield more), Small Area (city-centre yields higher than suburbs), and condition. County median is a reference point, not a forecast for any specific home.