Investment Property in Frankfurt: Figures, Districts and an Honest Calculation

Kevin Celentano · 2026-10-13

You are considering buying an apartment in Frankfurt to let. The city has a reputation few others can match: a banking centre, an airport, a trade fair hub and few vacant homes. Apartments here usually find tenants quickly.

But reputation alone is not enough to make your decision. What matters is how much an apartment costs, what rent you are allowed to charge and what is left at the end of the month. This is precisely where Frankfurt becomes difficult, because purchase prices are high relative to rents.

We have compiled the official figures, each with its source and reference date. And we work through the numbers for an apartment, before and after tax.

01Frankfurt in figures

The key data for property investors in one table. Note that there are two ways of counting the population: the city uses its population register, while the state statistical office uses the 2022 Census. The official figure is therefore around 20.000 lower.

02Population & demand

Frankfurt has grown considerably over the past ten years. Between mid-2016 and mid-2025, around 49.000 people were added to the population register, an increase of 6,7 %. In 2025 alone, the population increased by 4.494.

The city expects further growth. Its 2023 projection anticipates 827.506 residents in 2035 and 843.179 in 2045. Nevertheless, it is worth looking at the present. The forecast expected 789.296 residents by the end of 2025; the actual figure was 781.337. By mid-2026, the population had even fallen by 4.502 to 776.835. So growth is occurring, but more slowly than projected and not in every six-month period.

For landlords of small apartments, household composition matters more than population size. In Frankfurt, 53,4 % of households consist of one person, the highest figure among Hesse's major cities (2025 Microcensus). Across the state, the figure is 42,0 %. People living alone generally look for one or two rooms.

The 2022 Census shows how tight the market is. Of the dwellings in residential buildings, 3,1 % were vacant. Just under a third of these were occupied again within three months, while some were vacant because of building work. Just over three quarters of dwellings are rented, and only 19,5 % are owner-occupied. Frankfurt is a city of tenants.

03Economy & labour market

Frankfurt is a place of work for the entire region. On 31.03.2026, the Federal Employment Agency recorded 648.416 employees subject to social security contributions. According to the 2025 commuter statistics, around 424.700 people commute into the city each day and around 112.800 commute out. The net inflow exceeds 311.000.

The city is home to the European Central Bank, the Deutsche Bundesbank and many banks. Its largest single workplace is the airport. According to its operator, Fraport, over 80.000 people work there across around 500 companies. Other sectors include trade fairs, logistics, IT and higher education. Goethe University had 40.684 students enrolled in the winter semester 2025/26, and Frankfurt University of Applied Sciences around 15.000.

However, the latest figures also show a weakening trend. The unemployment rate was 7,1 % in September 2026, compared with 6,9 % a year earlier. Employment fell by 0,5 % year on year, the first decline since March 2025. For landlords, this does not mean demand is collapsing. It does mean that Frankfurt is not immune to the economic cycle, particularly in banking and aviation.

04Rents, purchase prices and rental yields

The local comparable rent according to the Frankfurt Rent Index 2026 averages 12,28 €/m². This is 6,8 % higher than in the 2024 rent index. The rent index has qualified status, was formally recognised on 25.06.2026 and is valid until 31.05.2028. For the first time, it distinguishes ten location categories rather than basic, good and very good locations.

Property portals show higher figures. Depending on the provider, asking rents in 2026 are around 15 to 19 €/m². These are landlords' expectations in listings, not rents actually paid. Because of the rent brake (Mietpreisbremse), they often cannot be charged for an existing apartment.

For purchase prices, the property valuation committee is the best source, as it analyses actual notarised contracts. In the first half of 2026, apartments sold for an average of 5.670 €/m², barely above the same period a year earlier (5.630 €/m²) and well below the record year of 2021 (6.570 €/m²). In central districts, the average was 6.440 €/m², compared with 4.460 €/m² elsewhere in the city. New-build apartments cost 8.200 €/m², 7 % more than a year earlier. The number of sales fell by 15 % to 1.354.

These figures can be used to calculate the purchase price multiplier. It shows how many years of net rent excluding service charges equal the purchase price. The gross rental yield is its reciprocal expressed as a percentage, before acquisition costs, building service charges and tax.

With a purchase price multiplier of around 35, you need 35 years of rent just to cover the purchase price. In many smaller cities, the multiplier is 20 to 25. You can enter your own figures in our rental yield calculator.

05Districts at a glance

Frankfurt has 46 districts, with substantial differences between them. The property valuation committee's figures show this even at a broad level: a gap of around 2.000 €/m² between central districts and the rest of the city. We did not have reliable district-level prices and rents from official sources. The table therefore describes character and tenant profiles without figures.

An apartment outside the central districts can offer a better gross rental yield because rents fall less sharply than prices. At 4.460 €/m² and rent of 12,00 €/m², it would be around 3,2 %. However, examine the condition, building service charges and owners' association particularly carefully there.

06Rules for landlords in Frankfurt

Frankfurt is classified as a municipality with a tight housing market. This means stricter rules than in many other cities. There is a particular point to note about the legal position in autumn 2026.

Rent brake (Mietpreisbremse): When a property is re-let, the rent may be no more than 10 % above the local comparable rent. Exceptions apply, among other cases, to apartments first used and let after 01.10.2014 and following comprehensive modernisation.

Rent increase cap (Kappungsgrenze): Under existing tenancy agreements, rent may rise by no more than 15 % over three years, and never above the comparable rent in the rent index. Without the ordinance, the limit would be 20 %.

Conversion and social preservation: Hesse's requirement for permission to convert rental apartments into individually owned apartments under § 250 BauGB expired on 31.12.2025. In social preservation areas (Milieuschutzgebiete), however, conversion still requires permission under § 172 BauGB. Modernisation work may also require permission in these areas.

Holiday lets: Frankfurt's Holiday Let Ordinance has applied since March 2023. Every letting as a holiday apartment requires permission, and breaches can cost up to 25.000 €. Short-term letting is therefore not a straightforward alternative in Frankfurt.

Property transfer tax and acquisition costs: In Hesse, property transfer tax is 6,0 %. Notary and land registry fees add around 1,5 to 1,8 % of the purchase price; see the guide to notary fees for more details. On a purchase price of 340.000 €, these costs total around 25.600 € excluding estate agent fees. The Hessengeld scheme applies only to owner-occupied homes, not investment properties. The acquisition costs calculator calculates your own costs.

07Worked example: a rented apartment in Frankfurt

Take Lena. She is single, earns a good salary and has taxable income of 90.000 € a year. She buys a rented two-room apartment of 60 m², built in 1995, at the property valuation committee's average price. At 13,00 €/m², the rent is slightly above the rent-index average. The name is fictional, and the figures are an illustrative calculation, not a forecast.

The bank finances the purchase price at 3,8 % interest and 1,5 % principal repayment. Lena pays the acquisition costs of around 25.600 € from her own funds. The interest rate is an assumption; your offer may differ.

In the first year, Lena therefore contributes around 800 € a month, or around 450 € after the tax saving. A large share of this is principal repayment. She is building wealth through this, provided the apartment retains its value. Excluding principal repayment, a shortfall of around 15 € a month remains in the first year.

Why is cash flow so negative? The interest rate of 3,8 % exceeds the gross rental yield of 2,75 %. Every euro borrowed costs more than the apartment generates in rent. At average prices, this is the norm in Frankfurt. The guide to tax on rental income explains how to declare rental income and losses in your tax return.

The tax saving depends on income. At a lower tax rate, it is smaller and the monthly cash contribution rises. That contribution only falls if interest rates decline or rent increases over the years. With a 15 % rent increase cap and the rent index as the upper limit, this can only happen gradually in Frankfurt.

For comparison: a new-build apartment in Frankfurt

What changes if Lena buys a newly built apartment instead of an existing one? According to the property valuation committee, new-build apartments cost an average of 8.200 €/m² in the first half of 2026. For 45 m², that is 369.000 €. There is no official new-build rent figure for Frankfurt. We therefore use the average asking rent for new-build apartments from property services provider JLL's Residential Market Overview: 21,55 €/m² in the first half of 2026. This is an analysis of listings, not rent actually paid. Income, interest and principal repayment remain as above.

In the first year, Lena's after-tax contribution therefore falls from around 448 € to around 118 € a month. This is mainly due to declining-balance depreciation, which at 12.894 € is more than twice the straight-line depreciation above but decreases each year, generally lower maintenance costs in the early years, and the higher new-build rent: an apartment first used and let after 01.10.2014 is exempt from the rent brake (§ 556f BGB), although the rent increase cap still applies to later increases. In return, Lena pays around 2.530 € more per m², and the gross rental yield of 3,15 % depends on the asking rent: at the rent-index average of 12,28 €/m², it would be 1,80 %. Buying from a developer also adds the risk of delayed completion.

08Opportunities and risks

Frankfurt has genuine strengths for landlords. But they come at a price, and some risks are greater here than elsewhere.

The case for Frankfurt: Vacancy is low, the proportion of single-person households is high, and each day over 300.000 more people travel into the city for work than leave it. Rent-index rents rose by 6,8 % from 2024 to 2026. Purchase prices are below their 2021 level, although this says nothing about future performance.

The case against: The gross rental yield is below 3 % and therefore below borrowing rates. Rents are restricted by the rent brake and rent increase cap. The economy depends heavily on banks and the airport. Recently, the population has grown more slowly than forecast and even declined slightly by mid-2026. Then there are the usual risks of any letting: vacancy between tenants, maintenance, special levies imposed by the owners' association and higher interest rates when refinancing.

For a general overview of the advantages and disadvantages, see the guide to apartments as investments.

09Other locations

Other cities in Hesse: Hesse overview · Kassel · Wiesbaden

All locations compared: Where is investment property worthwhile? Cities compared in 2026 · Which federal state is suitable? All 16 compared

10Further reading

• Rental yield calculator
• Acquisition costs calculator
• Property transfer tax in Hesse
• Apartments as investments: advantages and disadvantages
• Tax on rental income
• Notary fees when buying a home

11Sources

All sources accessed on 13.10.2026.

• Frankfurt Citizens' Office, Statistics and Elections, Current Statistics 04/2026 (population 31.12.2025, published 16.04.2026) and Current Statistics 13/2025 (population 30.06.2025, development since 2016)
• Rhein Main Verlag, Frankfurt has 776.835 residents at mid-year (25.08.2026, according to the Citizens' Office)
• City of Frankfurt, Urban Monitoring Papers 34: population projection to 2045 (May 2023)
• Hessian State Statistical Office, official population estimate based on the 2022 Census (31.12.2025), and Single-person households are the most common household type in Hesse (2025 Microcensus, 26.05.2026)
• Citizens' Office, Statistics and Elections, Results of the 2022 building and housing census in Frankfurt (11.09.2024)
• Federal Employment Agency, Press release 58/2026: the labour market in Frankfurt am Main (30.09.2026)
• Federal Employment Agency commuter statistics, presented on pendleratlas.de (2025 statistics)
• Fraport, Frankfurt Airport as a workplace
• Goethe University, Facts and figures (winter semester 2025/26); Frankfurt University of Applied Sciences, Facts, figures and data
• Frankfurt Rent Index 2026: hessenschau.de, 02.06.2026 and Frankfurt Tenants' Protection Association (recognised 25.06.2026, valid until 31.05.2028)
• Frankfurt Property Valuation Committee, Property Market Report, first half of 2026, cited by frankfurter.online, 19.08.2026 and Frankfurter Rundschau (18.08.2026)
• Hessian Ministry of Economic Affairs, Tenant protection to expand to 71 municipalities (24.09.2026); Tenant Protection Ordinance; hessenschau.de, rent brake FAQ (24.09.2026)
• DNotI, Conversion ordinance under § 250 BauGB in Hesse; City of Frankfurt, Conversion of rental apartments into individually owned apartments
• Frankfurt Building Control Authority, Holiday Let Ordinance
• JLL, Residential Market Overview H1 2026 (27.07.2026), Frankfurt section: asking rents for new-build apartments, analysis of listings
• §§ 556d ff., 558 BGB; § 556f BGB (new-build exemption); § 7 Abs. 4 and Abs. 5a EStG; § 7b EStG; § 32a EStG (2026 tax schedule); Hesse Property Transfer Tax Act
• All yields and the worked example: own calculation, as at 13.10.2026

Note: This page provides general information and does not constitute investment, tax or legal advice. All figures are given with their source and reference date; the worked example is based on disclosed assumptions and is not a forecast. As at 13.10.2026.