Authored by the expert who managed and guided the team behind the Israel Property Pack
Yes, the analysis of Jerusalem's property market is included in our pack
This blog post covers the current rental prices in Jerusalem, breaking down what you can expect to pay for studios, 1-bedrooms, and 2-bedrooms across the city's diverse neighborhoods.
We update this article regularly so you always have access to the freshest rental data for Jerusalem in 2026.
Whether you're a tenant searching for an apartment or a landlord setting your asking price, this guide gives you the numbers you need.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Jerusalem.
Insights
- Jerusalem rents rose about 2.5% year-over-year in 2025, which is actually below Israel's overall inflation rate, making it one of the more stable rental markets among major Israeli cities.
- Studios in Jerusalem typically rent for around ₪3,300 per month, but units in central neighborhoods like Nachlaot or City Center can easily reach ₪4,500 or more.
- The gap between the cheapest and most expensive 2-bedroom rentals in Jerusalem can exceed ₪4,000 per month, depending on whether you're in Pisgat Ze'ev or the German Colony.
- Parking is one of the biggest rent boosters in Jerusalem, often adding ₪300 to ₪600 per month to the asking price in dense central neighborhoods where street parking is scarce.
- Peak rental demand in Jerusalem hits between August and October, driven by university intake at Hebrew University and Bezalel Academy, making summer the best time for landlords to list.
- Expat-heavy neighborhoods like Rehavia and Talbiya command a 20% to 35% rent premium over the citywide average, partly because furnished units are more common there.
- Jerusalem's rental vacancy rate sits around 2% to 4%, which is tight enough that well-priced apartments often find tenants within two to three weeks.
- The Bank of Israel's November 2025 rate cut has kept mortgage costs elevated, which means many potential buyers remain renters, supporting steady demand into 2026.
- Rent per square meter in Jerusalem ranges from about ₪70 to ₪95 for typical apartments, but smaller studios can hit ₪110 per square meter because of the size premium.
- Family-friendly neighborhoods like Arnona and Beit HaKerem offer 3-bedroom rentals around ₪6,500 to ₪8,000 per month, which is roughly 30% below comparable units in premium central areas.
What are typical rents in Jerusalem as of 2026?
What's the average monthly rent for a studio in Jerusalem as of 2026?
As of January 2026, the average monthly rent for a studio apartment in Jerusalem is approximately ₪3,300, which works out to around $920 USD or €850 EUR at current exchange rates.
The realistic range for most studios in Jerusalem falls between ₪2,800 and ₪4,500 per month (roughly $780 to $1,250 USD or €720 to €1,150 EUR), depending on location and condition.
The main factors that cause studio rents to vary within Jerusalem are neighborhood prestige (central areas like Nachlaot or City Center cost more), building age, whether the unit has air conditioning, and proximity to public transit or Hebrew University.
What's the average monthly rent for a 1-bedroom in Jerusalem as of 2026?
As of January 2026, the average monthly rent for a 1-bedroom apartment in Jerusalem is approximately ₪4,100, which equals about $1,140 USD or €1,050 EUR.
The realistic range for most 1-bedroom apartments in Jerusalem spans from ₪3,400 to ₪5,500 per month (roughly $945 to $1,530 USD or €870 to €1,410 EUR), covering everything from basic units to renovated apartments in sought-after locations.
Neighborhoods like Pisgat Ze'ev and Ramot tend to have the cheapest 1-bedroom rents in Jerusalem, while areas such as Rehavia, Talbiya, and the German Colony sit at the highest end of the price spectrum.
What's the average monthly rent for a 2-bedroom in Jerusalem as of 2026?
As of January 2026, the average monthly rent for a 2-bedroom apartment in Jerusalem is approximately ₪4,700, which translates to around $1,305 USD or €1,205 EUR.
The realistic range for most 2-bedroom apartments in Jerusalem runs from ₪3,800 to ₪6,500 per month (roughly $1,055 to $1,805 USD or €975 to €1,665 EUR), reflecting the wide variation across the city's neighborhoods.
For 2-bedroom rentals in Jerusalem, outer neighborhoods like Neve Ya'akov and Gilo offer the most affordable options, while premium areas such as Mamilla, German Colony, and Baka command the highest rents.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Jerusalem.
What's the average rent per square meter in Jerusalem as of 2026?
As of January 2026, the average rent per square meter in Jerusalem for typical long-term rentals falls between ₪70 and ₪95 per month, which equals roughly $19 to $26 USD or €18 to €24 EUR per square meter.
The realistic range across Jerusalem neighborhoods spans from about ₪55 per square meter in outer residential areas to ₪130 or more in premium central locations like Mamilla or Talbiya.
Compared to Tel Aviv, where rents per square meter often exceed ₪100 to ₪120, Jerusalem remains more affordable on a per-meter basis, though it sits above most other Israeli cities outside the coastal center.
Property characteristics that push rent per square meter above average in Jerusalem include high floors with views, renovated kitchens and bathrooms, dedicated parking, and location within walking distance of the light rail or major employment centers.
How much have rents changed year-over-year in Jerusalem in 2026?
As of January 2026, Jerusalem rents have increased approximately 2.5% year-over-year based on the most recent full-year comparison (2025 versus 2024) from official statistics.
The main factors driving rent changes in Jerusalem this year include sustained demand from students and government workers, limited new housing supply due to slow construction pipelines, and a macroeconomic environment where inflation is moderating but financing costs remain elevated.
This year's 2.5% rent increase in Jerusalem is consistent with the previous year's trend, suggesting a stable but gradually rising rental market rather than the sharp jumps seen in some other Israeli cities.
What's the outlook for rent growth in Jerusalem in 2026?
As of January 2026, Jerusalem rents are projected to grow between 2% and 4% over the coming year, representing a moderate and sustainable pace.
The key factors likely to influence rent growth in Jerusalem include the Bank of Israel's easing inflation trajectory, continued strong demand from Hebrew University students and government employees, and persistently tight housing supply due to limited construction activity in the city.
Neighborhoods expected to see the strongest rent growth in Jerusalem include areas along the light rail corridor, French Hill near Hebrew University, and emerging young professional zones around Mahane Yehuda and City Center.
Risks that could cause rent growth in Jerusalem to differ from projections include unexpected changes in geopolitical stability, shifts in immigration patterns, or a significant loosening of credit conditions that would push more renters into home ownership.
We have made this infographic to give you a quick and clear snapshot of the property market in Israel. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which neighborhoods rent best in Jerusalem as of 2026?
Which neighborhoods have the highest rents in Jerusalem as of 2026?
As of January 2026, the three neighborhoods with the highest average rents in Jerusalem are Mamilla, Talbiya, and the German Colony, where 2-bedroom apartments typically range from ₪7,500 to ₪12,000 per month (approximately $2,080 to $3,330 USD or €1,920 to €3,080 EUR).
These neighborhoods command premium rents in Jerusalem because they combine walkability to the city center, prestigious addresses, beautifully renovated historic buildings, and strong demand from both locals and international residents.
The tenant profile in these high-rent Jerusalem neighborhoods typically includes diplomats, senior professionals, wealthy retirees, and expats who prioritize central location, safety, and access to English-speaking communities.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Jerusalem.
Where do young professionals prefer to rent in Jerusalem right now?
The three neighborhoods where young professionals most commonly prefer to rent in Jerusalem are Nachlaot, City Center, and the Mahane Yehuda area, all offering a vibrant urban lifestyle within walking distance of cafes, nightlife, and the light rail.
Young professionals in these Jerusalem neighborhoods typically pay between ₪3,800 and ₪5,500 per month (roughly $1,055 to $1,530 USD or €975 to €1,410 EUR) for 1-bedroom or small 2-bedroom apartments.
The specific amenities that attract young professionals to these Jerusalem neighborhoods include walkability to restaurants and bars, quick public transit access to employment hubs, a diverse social scene, and the character of older buildings mixed with renovated units.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Jerusalem.
Where do families prefer to rent in Jerusalem right now?
The three neighborhoods where families most commonly prefer to rent in Jerusalem are Arnona, Beit HaKerem, and Ramat Eshkol, all offering larger apartments, quieter streets, and good access to schools and parks.
Families in these Jerusalem neighborhoods typically pay between ₪5,500 and ₪8,500 per month (roughly $1,530 to $2,360 USD or €1,410 to €2,180 EUR) for 3-bedroom apartments suitable for children.
The specific features that make these neighborhoods attractive to families in Jerusalem include proximity to well-regarded schools, green spaces for children to play, easier parking than central areas, and a strong community feel with synagogues and local shops.
Top-rated schools near these family-friendly Jerusalem neighborhoods include the Hebrew University High School in Beit HaKerem, several religious and secular public schools in Arnona, and the Evelina de Rothschild School accessible from Ramat Eshkol.
Which areas near transit or universities rent faster in Jerusalem in 2026?
As of January 2026, the three areas near transit hubs or universities that rent fastest in Jerusalem are French Hill (near Hebrew University Mount Scopus), Givat Ram (near the university campus), and neighborhoods along the light rail corridor in City Center.
Properties in these high-demand Jerusalem areas typically stay listed for only 7 to 15 days, compared to the citywide average of 15 to 25 days for correctly priced rentals.
The typical rent premium for properties within walking distance of transit or universities in Jerusalem ranges from ₪400 to ₪800 per month (roughly $110 to $220 USD or €100 to €205 EUR) compared to similar units farther from these amenities.
Which neighborhoods are most popular with expats in Jerusalem right now?
The three neighborhoods most popular with expats in Jerusalem are Rehavia, Talbiya, and the German Colony, all known for their central locations, English-speaking communities, and availability of furnished apartments.
Expats in these Jerusalem neighborhoods typically pay between ₪6,000 and ₪10,000 per month (roughly $1,665 to $2,780 USD or €1,540 to €2,565 EUR) for furnished 2-bedroom apartments.
The specific features that make these neighborhoods attractive to expats in Jerusalem include walkability to cultural sites and restaurants, established international communities, proximity to embassies and international organizations, and landlords accustomed to renting to foreigners.
The nationalities most represented in these Jerusalem neighborhoods include Americans (especially in Rehavia), French expats (common in Baka and German Colony), and British and Australian families, many of whom are connected to academic or religious institutions.
And if you are also an expat, you may want to read our exhaustive guide for expats in Jerusalem.
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Who rents, and what do tenants want in Jerusalem right now?
What tenant profiles dominate rentals in Jerusalem?
The three tenant profiles that dominate the rental market in Jerusalem are students and academic renters (drawn by Hebrew University and Bezalel Academy), young professionals working in government or tech, and families seeking more space than they could afford to buy.
Students and academics represent roughly 25% to 30% of Jerusalem's rental demand, young professionals account for about 30% to 35%, and families make up approximately 25% to 30%, with the remainder split among expats and short-term renters.
Students typically seek small 1-2 room apartments or shared housing near campuses, young professionals prefer 2-room units in central walkable areas, and families look for 3-4 room apartments in quieter neighborhoods with good schools.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Jerusalem.
Do tenants prefer furnished or unfurnished in Jerusalem?
In Jerusalem, approximately 70% to 75% of long-term tenants prefer unfurnished apartments, while 25% to 30% actively seek furnished rentals, with the furnished segment concentrated in expat-heavy and student areas.
The typical rent premium for furnished apartments in Jerusalem ranges from ₪800 to ₪1,500 per month (roughly $220 to $415 USD or €205 to €385 EUR) above comparable unfurnished units, depending on furniture quality and neighborhood.
Tenant profiles that tend to prefer furnished rentals in Jerusalem include international expats on temporary assignments, visiting academics and researchers, and students from abroad who cannot easily ship furniture.
Which amenities increase rent the most in Jerusalem?
The five amenities that increase rent the most in Jerusalem are dedicated parking, an elevator (especially in older buildings), a balcony or outdoor space, a protected room or bomb shelter access, and air conditioning with efficient heating.
In Jerusalem, parking typically adds ₪300 to ₪600 per month (roughly $85 to $165 USD or €75 to €155 EUR), an elevator adds ₪200 to ₪400, a balcony adds ₪150 to ₪350, shelter access adds ₪100 to ₪250, and good climate control adds ₪150 to ₪300 to the monthly rent.
In our property pack covering the real estate market in Jerusalem, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Jerusalem?
The five renovations that get the best ROI for rental properties in Jerusalem are kitchen modernization, bathroom updates, adding or improving air conditioning, upgrading flooring and lighting, and improving insulation or window quality.
A kitchen refresh in Jerusalem typically costs ₪15,000 to ₪40,000 ($4,165 to $11,110 USD) and can increase monthly rent by ₪300 to ₪600, while a bathroom update costs ₪10,000 to ₪25,000 and adds ₪200 to ₪400 per month, offering payback periods of 3 to 5 years in most cases.
Renovations that tend to have poor ROI for landlords in Jerusalem include luxury finishes that exceed neighborhood standards, swimming pool additions in buildings without existing pools, and extensive structural changes that do not add bedrooms or functional space.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Israel versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
How strong is rental demand in Jerusalem as of 2026?
What's the vacancy rate for rentals in Jerusalem as of 2026?
As of January 2026, the estimated vacancy rate for rental properties in Jerusalem is approximately 2% to 4%, indicating a tight market where well-priced apartments find tenants relatively quickly.
The realistic range of vacancy rates across different Jerusalem neighborhoods spans from under 2% in high-demand areas like Rehavia and French Hill to around 5% to 6% in some outer neighborhoods like Pisgat Ze'ev or Ramot.
The current vacancy rate in Jerusalem is consistent with the historical average, as the city has structurally constrained supply due to limited land availability and slow planning approvals, which keeps vacancy persistently low.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Jerusalem.
How many days do rentals stay listed in Jerusalem as of 2026?
As of January 2026, the average number of days rentals stay listed in Jerusalem is approximately 15 to 20 days for correctly priced properties in desirable locations.
The realistic range of days on market across different property types and neighborhoods in Jerusalem spans from 7 to 15 days in high-demand areas near universities or the light rail, to 30 days or more for overpriced units or those in less accessible locations.
The current days-on-market figure in Jerusalem is roughly similar to one year ago, reflecting stable and consistent demand that has not dramatically shifted despite broader economic changes.
Which months have peak tenant demand in Jerusalem?
The peak months for tenant demand in Jerusalem are August through October, driven primarily by the academic calendar at Hebrew University and Bezalel Academy, with a smaller secondary peak in January and February.
The specific factors driving seasonal demand patterns in Jerusalem include student intake in the fall semester, government and institutional job rotations that often begin in autumn, and a cultural preference for moving after the Jewish High Holidays in September and October.
The months with the lowest tenant demand in Jerusalem are typically December (during the holiday season) and the early summer months of June and July before the academic rush begins.
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What will my monthly costs be in Jerusalem as of 2026?
What property taxes should landlords expect in Jerusalem as of 2026?
As of January 2026, landlords in Jerusalem should expect to pay approximately ₪6,000 to ₪12,000 per year in Arnona (municipal property tax), which equals roughly $1,665 to $3,330 USD or €1,540 to €3,080 EUR annually.
The realistic low-to-high range of annual Arnona in Jerusalem spans from about ₪4,500 for smaller apartments in outer neighborhoods to ₪18,000 or more for large properties in premium central zones like Rehavia or Talbiya.
Arnona in Jerusalem is calculated based on the property's size in square meters, its location (neighborhood zoning classification), and its designated use, with the Jerusalem Municipality setting rates that vary significantly across different areas of the city.
Please note that, in our property pack covering the real estate market in Jerusalem, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Jerusalem right now?
A realistic annual maintenance budget for a typical rental property in Jerusalem is approximately ₪8,000 to ₪12,000, which equals roughly $2,220 to $3,330 USD or €2,050 to €3,080 EUR per year.
The realistic low-to-high range of annual maintenance costs in Jerusalem spans from about ₪5,000 for newer apartments in good condition to ₪20,000 or more for older buildings with elevators, aging plumbing, or frequent repair needs.
Landlords in Jerusalem typically set aside 8% to 12% of their annual rental income for maintenance, though owners of older properties in established neighborhoods often budget closer to 15% to account for more frequent repairs.
What utilities do landlords often pay in Jerusalem right now?
In most long-term Jerusalem rentals, landlords most commonly pay building maintenance fees (va'ad bayit), which cover shared building expenses like stairwell cleaning, elevator maintenance, and common area lighting.
Building maintenance fees in Jerusalem typically cost ₪150 to ₪400 per month (roughly $40 to $110 USD or €40 to €100 EUR), with higher amounts for buildings with elevators, gardens, or security services.
The common practice in Jerusalem is for tenants to pay electricity, water, gas, internet, and Arnona directly, while landlords cover building fees and sometimes include basic appliance maintenance in the lease terms.
How is rental income taxed in Israel as of 2026?
As of January 2026, rental income in Israel can be taxed under three main tracks: a full exemption up to approximately ₪5,650 per month, a flat 10% tax on gross rent with no expense deductions, or regular income tax rates (10% to 50%) with eligible expense deductions.
The main deductions landlords in Israel can claim under the regular tax track include mortgage interest, depreciation on the property, maintenance and repair costs, insurance, and property management fees.
A common tax mistake specific to Jerusalem landlords is failing to choose the most advantageous tax track for their situation, such as using the 10% flat rate when they have significant deductible expenses that would make the regular track more beneficial.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Jerusalem.
We made this infographic to show you how property prices in Israel compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Jerusalem, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Israel Central Bureau of Statistics Table 4.9 | It's Israel's official statistics office publishing nationwide rent estimates with a consistent methodology. | We treated this as the anchor dataset for Jerusalem rent levels by apartment size. We used the October to December 2025 period as the closest proxy for January 2026 market reality. |
| CBS Main Price Indices Hub | It's the official portal for Israel's Consumer Price Index and related inflation series. | We used it to frame rent changes within broader inflation dynamics. We used it as a cross-check so our 2026 rent-growth outlook isn't disconnected from macro inflation. |
| Bank of Israel Price Indices Page | It's the central bank's statistics explainer and gateway to official price-index series. | We used it to triangulate inflation context alongside CBS. We used it to keep the outlook section consistent with central-bank framing of price dynamics. |
| Bank of Israel Research Forecast January 2025 | It's the Bank of Israel's official macro forecast, which markets and policymakers use as a baseline. | We used it to set a reasonable macro backdrop for 2026 growth and inflation. We used it as one input into rent-growth expectations since rents rarely move far from incomes and inflation. |
| Reuters BOI Policy Guidance September 2025 | Reuters is a top-tier wire service that directly reports central-bank statements with tight fact-checking. | We used it to anchor the early 2026 macro narrative around easing inflation. We used it to support the idea that 2026 rent growth is more likely moderate than explosive. |
| Reuters BOI Rate Cut November 2025 | It reports an official rate decision that directly affects mortgage costs and investor behavior. | We used it to explain why rental demand can stay firm even if home prices soften. We used it as a supporting macro factor for 2026 rent resilience. |
| Knesset Research Center Rental Taxation Summary | It's a parliamentary research unit summarizing the law and proposals in plain terms. | We used it to explain the main rent-tax tracks and the exemption logic clearly. We used it to triangulate the exemption ceiling figure referenced in public policy discussions. |
| Israel Tax Authority Rental Income Guide | It's the official government guidance for how rental income is taxed in Israel. | We used it as the primary reference for landlord taxation on long-term residential rent. We used it to keep the tax section practical and actionable for readers. |
| CBS Official Government Landing Page | It confirms CBS's formal role and independence as Israel's national statistics agency. | We used it to justify why CBS tables are the top authority for rents and housing stats. We used it as a credibility cross-check when mixing CBS with private-sector market color. |
| CBS Jerusalem Day Selected Data 2024 | It's an official CBS city-focused release useful for supply-side context. | We used it to explain why supply in Jerusalem doesn't expand quickly due to planning and construction constraints. We used it as qualitative support for tight market dynamics in 2026. |
| FRED Residential Property Prices Israel | It republishes BIS and official series through a widely used research platform. | We used it only as macro context showing that when buying is expensive, renting demand stays elevated. We used it as a cross-check that the broader housing backdrop supports steady rental demand. |
| Bank of Israel Inflation Expectations Page | It's the central bank's official aggregation of inflation expectations from multiple sources. | We used it to keep our 2026 outlook consistent with how inflation is monitored in Israel. We used it as a triangulation layer so our rent-growth range is defensible. |
| Proprietary Sands of Wealth Database | It's our internal database of Jerusalem rental listings, tenant surveys, and transaction records. | We used it to estimate neighborhood-level rent premiums and tenant preferences. We used it to validate days-on-market and vacancy rate estimates where official data is limited. |
| Jerusalem Municipality Arnona Rate Schedules | It's the official source for property tax rates set by the local government. | We used it to estimate realistic Arnona ranges for different property types. We used it to provide accurate cost planning figures for landlords in Jerusalem. |
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