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Everyone wants one number. There isn't one — but there is an honest range, and there's data behind it.
The short answer
A well-located, well-managed Bali villa in a prime area (Uluwatu, Bingin, Canggu) realistically earns a gross rental yield of roughly 10–17% and a net yield of roughly 7–13% in 2026, depending on area, bedroom count, build quality, and — more than anything — management. Independent sources put net yields for professionally managed villas in prime areas in the 8–13% band, with poorly managed or oversupplied stock landing well below that. Our own published portfolio data shows what the top of that range looks like in practice: a 1-bed Uluwatu villa we manage returned a 14% net yield, against a market range we benchmark at 6–9% for the same property type. Two villas can sit on the same street, share the same architecture, and earn 30% apart. The asset isn't the building — it's the building plus how it's run.
Quick answer
What actually drives how much a Bali villa earns?
Five levers decide the number, and they compound. Get one wrong and the rest can't fully recover it.
1. Area and submarket. Location sets the rate ceiling. Uluwatu's clifftop pocket and Bingin's walkable village command premium nightly rates; Canggu trades a slightly lower rate for higher, more year-round volume. Within a single region the variance is large — a 2-bed in walkable Bingin can clear materially more than an identical 2-bed three kilometres inland in Pecatu.
2. Bedroom count and configuration. More bedrooms means a higher absolute revenue number but not always a higher yield, because the acquisition cost rises too. Smaller villas (1–2 beds) often post the strongest net yields because they're cheaper to buy and run, while still commanding strong per-night rates in the right submarket.
3. Occupancy. The island-wide average sits around 55–65% on AirDNA-derived data. Top operators run 85%+. That gap is the difference between a villa that pays for itself and one that disappoints. Cabo's portfolio runs 91% occupancy across 20+ villas — against a Bali market average we benchmark at 55–65%.
4. Average daily rate (ADR). What guests actually pay per booked night. Dynamic pricing, professional photography, review velocity, and channel positioning all push ADR. A villa with average photos and static pricing leaves rate on the table every single night.
5. Management. This is the multiplier that sits on top of the other four. Revenue management, multi-channel distribution, a direct-booking channel that avoids OTA commission, and proactive maintenance are what convert a good location into a strong yield. It's also where most of the variance between "average" and "top-decile" villas comes from.
What are realistic gross and net yields by area in 2026?
Here's where the honesty matters. Industry sources quote a wide spread, and the headline numbers in sales decks are usually the optimistic top of the range.
Across independent 2026 sources, gross yields for well-managed prime-area villas cluster around 15–17%, with net yields landing at roughly 8–13% after costs. Broader market data — including average and poorly run stock — pulls the realistic range down: net yields of 3–7% are common for villas that are mispriced, under-marketed, or sitting in oversupplied pockets. One widely cited figure is that the gap between gross and net is typically 40–50% once OTA commissions, management, maintenance, and tax are stripped out.
Treat every number below as an indicative range, not a guarantee. Real outcomes depend on the specific property, the year, and the operator.
Ranges synthesised from independent 2026 market sources and hedged accordingly. Cabo's own per-villa figures are real owner-report data; the wider ranges are market estimates and will vary by property and year.
How much does occupancy actually move the number?
Occupancy is the lever owners underestimate most. The island-wide average sits at 55–65%. If your villa runs at 60% while a comparable villa next door runs at 90%, you're earning roughly a third less revenue from the same asset — before you even account for the ADR uplift that strong operators also capture.
This is the single clearest example of management as a multiplier. Our portfolio runs 91% occupancy across 20+ villas in Uluwatu, Bingin, Pecatu, Ungasan, Canggu, and Pererenan. We benchmark the market we operate in at 55–65%, which means the occupancy gap alone — before ADR — can be 25–35 points. On a villa earning, say, $80K gross at 96% occupancy, dropping to a 65% market-average occupancy at the same rate would erase tens of thousands in annual revenue. Occupancy isn't a vanity metric; it's most of the yield.
What's the difference between gross revenue and what the owner keeps?
This is where most projections quietly mislead. Gross revenue is the headline. Net income — what actually lands in the owner's account — is what matters, and it's a lot lower.
A typical short-term-rental villa loses 40–50% of gross before the owner keeps anything. The stack looks like this: OTA channel commissions (roughly 13–17%), management fee (market range 15–25%; Cabo charges 13% of gross plus a flat admin fee, with maintenance at cost and no lock-in), operating expenses (housekeeping, pool, garden, utilities, maintenance — often 13–20% of net revenue), and Indonesian rental tax. A villa showing a 15–17% gross yield commonly ends up at 8–10% net once all of that is accounted for.
Two things move that math in the owner's favour. First, direct bookings — every booking taken through a management company's own site instead of an OTA saves 15–17% commission, money that flows straight to the bottom line. Second, a lower, transparent fee structure without maintenance markups. Both are management decisions, not market conditions.
How does bedroom count change the earnings picture?
Bigger isn't automatically better on a yield basis. A 3-bed villa earns more in absolute dollars than a 1-bed, but it also costs more to buy, more to clean, and more to maintain — so the percentage return can actually be lower.
In practice, smaller villas in strong submarkets often post the highest net yields because the acquisition cost is contained while the per-night rate stays strong. Our published data shows a 1-bed Uluwatu villa returning a 14% net yield on a $200–250K acquisition, and a 2-bed Bingin villa returning roughly 14–16% net on a $280–330K acquisition. The larger villa earns more total profit; the smaller one is competitive on yield. If you're optimising for return on capital rather than headline revenue, don't assume more bedrooms is the answer — model both.
versus a 55–65% market average. The takeaway for owners: the achievable ceiling is far above the market mean — but only conditional on build quality, submarket, and active management. — Cabo Bali, 2026
Pro tip — Keanu Fischell, Co-Founder, Cabo Bali. Ignore the single "yield" number in any sales deck and ask for the inputs instead: what occupancy, what ADR, what blended OTA commission, what management fee, and what's in the maintenance line. A deck that projects 80% occupancy at a premium ADR with expenses "around 20%" is hiding the 40–50% that gross revenue actually loses. The villas that disappoint owners in year one usually performed fine — they were just sold against a number that was never real.
FAQ
How much can a Bali villa earn per year in 2026?
It depends on area, size, and management, but a well-located, well-managed prime-area villa realistically earns a gross yield of roughly 10–17% and a net yield of roughly 7–13% of its acquisition cost per year. Average or poorly managed villas often land at 3–7% net. There's no single number — there's a range, and management is the biggest swing factor within it.
What is a realistic net yield for a Bali villa?
For professionally managed villas in prime areas (Uluwatu, Bingin, Canggu), independent 2026 sources put net yields at roughly 8–13%. Our own published data shows a 1-bed Uluwatu villa at 14% net and a 2-bed Bingin villa at 14–16% net — the top of the achievable range, conditional on strong management. Average stock sits lower, often 3–7% net.
Why is there such a big range in villa earnings?
Because two villas with the same location and design can earn 25–35% apart based purely on how they're run — pricing strategy, occupancy, channel mix, photography, and maintenance. Location sets the ceiling; management determines how close you get to it. That's why a market average and a top-operator number can look like different planets.
Do bigger villas earn more?
More total revenue, yes — but not always a higher yield. Larger villas cost more to buy and run, so the percentage return can be lower than a smaller villa in the same area. Smaller 1–2 bed villas in strong submarkets often post the best net yields on a return-on-capital basis.
How much of gross revenue does an owner actually keep?
Typically 50–60%. Gross revenue loses roughly 40–50% to OTA commissions (13–17%), management fees, operating costs (13–20% of net), and Indonesian rental tax. A villa showing 15–17% gross yield usually nets out at 8–10% after everything.
Are these earnings guaranteed?
No. All figures here are indicative ranges, not guarantees. Cabo's per-villa numbers are real owner-report data for specific properties; the wider market ranges are estimates from third-party sources that vary by property, submarket, and year. Bali's villa market is also seeing supply growth, which can compress rates over time. Always model a downside scenario before buying.
Where can I see real, specific earnings numbers?
We publish full per-villa breakdowns with the bad months included — see the related reading below for the actual 12-month performance of a 1-bed Uluwatu villa and a 2-bed Bingin villa, plus our quarterly portfolio benchmark report.
Key takeaways
About the author. Keanu Fischell is Co-Founder of, which manages 20+ boutique villas across Uluwatu, Bingin, Pecatu, Ungasan, Canggu, and Pererenan. He writes from the operator's side of Bali villas — real numbers, real owner reports, and lessons from running the portfolio day to day. Cabo Bali charges 13% with no lock-in, runs 91% portfolio occupancy, and holds a 4.85/5 guest rating across 500+ stays.
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