Authored by the expert who managed and guided the team behind the Israel Property Pack
Everything you need to know before buying real estate is included in our Israel Property Pack
If you're looking to rent or invest in rental property in Israel, understanding current rent levels is essential.
This article breaks down typical rents in Israel by apartment size, neighborhood, and tenant type, all updated for January 2026.
We constantly update this blog post so you always have access to the freshest data available.
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 Israel.
Insights
- Rents in Israel climbed around 6% year-over-year in 2025, driven by persistent demand in Tel Aviv and Jerusalem where supply remains tight.
- A studio in Israel averages about ₪3,350 per month nationwide, but in Tel Aviv's hottest neighborhoods, you can easily pay double that amount.
- The rent gap between Tel Aviv District and the northern or southern periphery can exceed 40%, making location the single biggest rent driver in Israel.
- New tenants in Israel often face steeper rent increases than renewing tenants, sometimes 10% or more above what existing tenants pay for similar apartments.
- Young professionals cluster in neighborhoods like Florentin and the Old North in Tel Aviv, where monthly rents for a 1-bedroom typically range from ₪4,500 to ₪7,000.
- Family-friendly areas like Ramat Aviv, Modi'in, and Arnona in Jerusalem offer more space but still command premium rents due to strong schools and parks.
- Vacancy rates in Israel's rental market hover between 2% and 4% nationwide, dropping to just 1% to 2% in Tel Aviv's most sought-after neighborhoods.
- Properties near universities like Tel Aviv University or Hebrew University in Jerusalem rent within 7 to 14 days on average, much faster than the national norm.
- Arnona, the municipal property tax in Israel, is typically paid by the tenant, not the landlord, which is a unique aspect of Israeli lease agreements.
- Landlords in Israel can choose between a tax exemption (up to about ₪5,650 per month), a flat 10% tax on gross rent, or regular income tax with deductions.
What are typical rents in Israel as of 2026?
What's the average monthly rent for a studio in Israel as of 2026?
As of early 2026, the average monthly rent for a studio apartment in Israel is approximately ₪3,350 (around $930 USD or €860 EUR), based on the lower end of the official 1-2 room category published by Israel's Central Bureau of Statistics.
That said, realistic studio rents in Israel range from about ₪2,200 ($610 USD, €560 EUR) in peripheral cities like Be'er Sheva to ₪6,500 ($1,800 USD, €1,670 EUR) or more in central Tel Aviv neighborhoods.
The main factors that cause studio rents to vary in Israel are location (Tel Aviv versus the periphery), building age, proximity to transit or universities, and whether the unit is furnished.
What's the average monthly rent for a 1-bedroom in Israel as of 2026?
As of early 2026, the average monthly rent for a 1-bedroom apartment in Israel is approximately ₪3,900 (around $1,080 USD or €1,000 EUR), reflecting a 2-room unit in Israel's counting system where the living room counts as one room.
Realistic 1-bedroom rents in Israel range from about ₪2,800 ($780 USD, €720 EUR) in more affordable cities to ₪7,500 ($2,080 USD, €1,920 EUR) or higher in prime Tel Aviv locations.
In Israel, the cheapest 1-bedroom rents are found in peripheral areas like Dimona, Arad, or parts of the Galilee, while the highest rents are in neighborhoods like Neve Tzedek, Rothschild Boulevard, and the Old North in Tel Aviv, as well as Rehavia and the German Colony in Jerusalem.
What's the average monthly rent for a 2-bedroom in Israel as of 2026?
As of early 2026, the average monthly rent for a 2-bedroom apartment in Israel is approximately ₪4,550 (around $1,260 USD or €1,170 EUR), based on the CBS 2.5-3 room category which corresponds to a true 2-bedroom in Israeli terms.
Realistic 2-bedroom rents in Israel range from about ₪3,200 ($890 USD, €820 EUR) in less expensive areas to ₪10,000 ($2,780 USD, €2,560 EUR) or more in high-demand Tel Aviv and Jerusalem neighborhoods.
The cheapest 2-bedroom rents in Israel are typically found in development towns and peripheral cities like Netivot, Ofakim, and parts of the Upper Galilee, while the most expensive are in Tel Aviv's Park Tzameret, Ramat Aviv Gimel, Herzliya Pituach, and Jerusalem's Talbiya and Rehavia.
By the way, you will find much more detailed rent ranges in our property pack covering the real estate market in Israel.
What's the average rent per square meter in Israel as of 2026?
As of early 2026, the average rent per square meter in Israel is approximately ₪75 (around $21 USD or €19 EUR) per month, though this varies significantly by location and property type.
Realistic rent per square meter in Israel ranges from about ₪50 ($14 USD, €13 EUR) in peripheral areas to ₪110 ($31 USD, €28 EUR) or more in central Tel Aviv, reflecting the extreme geographic price variation across the country.
Compared to other major Israeli cities, Tel Aviv commands the highest rent per square meter, often 30% to 50% above Jerusalem and nearly double what you would pay in Haifa or Be'er Sheva.
In Israel, properties that push rent per square meter above average typically feature modern construction, a mamad (reinforced safe room), elevator access, dedicated parking, and proximity to transit or the beach in coastal areas.
How much have rents changed year-over-year in Israel in 2026?
As of early 2026, rents in Israel have increased approximately 6% year-over-year nationwide, based on CBS data showing the national average rent rising from ₪4,586 in 2024 to ₪4,879 in 2025.
The main factors driving rent changes in Israel this year include persistent housing supply shortages in central areas, strong demand from households priced out of buying, and elevated interest rates that have kept more people in the rental market longer.
This year's rent increase in Israel is consistent with the previous year's trend, as the housing market continues to show structural supply-demand imbalances that have kept rent growth elevated compared to overall inflation.
What's the outlook for rent growth in Israel in 2026?
As of early 2026, rent growth in Israel is projected to continue at a moderate pace of about 3% to 6% over the coming year, as demand remains strong but inflation expectations have eased.
The key economic and demographic factors likely to influence rent growth in Israel include Bank of Israel interest rate decisions, ongoing immigration (particularly from Western countries), and the slow pace of new housing construction in high-demand areas.
In Israel, neighborhoods expected to see the strongest rent growth in 2026 include up-and-coming areas near new light rail stations in Tel Aviv, redeveloping neighborhoods in South Tel Aviv, and transit-connected suburbs like Petah Tikva and Rishon LeZion.
Risks that could cause rent growth in Israel to differ from projections include a potential economic slowdown, changes in security conditions, or unexpected government housing supply initiatives that could cool demand.
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 Israel as of 2026?
Which neighborhoods have the highest rents in Israel as of 2026?
As of early 2026, the top three neighborhoods with the highest average rents in Israel are Neve Tzedek in Tel Aviv (averaging ₪12,000+ or $3,330 USD, €3,080 EUR for a 2-bedroom), Herzliya Pituach (₪15,000+ or $4,170 USD, €3,850 EUR), and Rehavia in Jerusalem (₪9,000+ or $2,500 USD, €2,310 EUR).
These premium neighborhoods command high rents in Israel because they offer a combination of prestige, security, proximity to beaches or cultural amenities, excellent infrastructure, and limited available inventory.
The tenant profile in these high-rent Israel neighborhoods typically includes senior executives, diplomats, wealthy expats, and established families who prioritize location, security, and lifestyle over cost.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Israel.
Where do young professionals prefer to rent in Israel right now?
The top three neighborhoods where young professionals prefer to rent in Israel are Florentin in South Tel Aviv, the Old North (HaTzafon HaYashan) in Tel Aviv, and central Ramat Gan near the Diamond Exchange area.
Young professionals in these Israel neighborhoods typically pay between ₪4,500 and ₪7,500 per month ($1,250 to $2,080 USD, €1,150 to €1,920 EUR) for a 1-bedroom apartment, depending on the specific street and building quality.
These neighborhoods attract young professionals in Israel because they offer walkable nightlife, cafes, coworking spaces, short commutes to the tech corridor, and a vibrant social scene that matches their lifestyle.
By the way, you will find a detailed tenant analysis in our property pack covering the real estate market in Israel.
Where do families prefer to rent in Israel right now?
The top three neighborhoods where families prefer to rent in Israel are Ramat Aviv in North Tel Aviv, Arnona in Jerusalem, and the city of Modi'in-Maccabim-Re'ut in the center of the country.
Families renting 2-3 bedroom apartments in these Israel neighborhoods typically pay between ₪6,000 and ₪12,000 per month ($1,670 to $3,330 USD, €1,540 to €3,080 EUR), with Modi'in generally more affordable than Tel Aviv or Jerusalem.
These neighborhoods attract families in Israel because they offer larger apartments, green spaces, playgrounds, lower density, safer streets for children, and a family-oriented community atmosphere.
Top-rated schools near these family-friendly Israel neighborhoods include schools in the Ramat Aviv school district, Jerusalem's Arnona and Baka area schools, and Modi'in's well-regarded public school system which is known for high academic standards.
Which areas near transit or universities rent faster in Israel in 2026?
As of early 2026, the top three areas near transit or universities that rent fastest in Israel are the Ramat Aviv area near Tel Aviv University, Givat Ram near Hebrew University in Jerusalem, and Neve Sha'anan near the Technion in Haifa.
Properties in these high-demand Israel areas typically stay listed for only 7 to 14 days, compared to 30 days or more in less transit-connected locations, because student and commuter demand absorbs inventory quickly.
The typical rent premium for properties within walking distance of transit or universities in Israel is about ₪500 to ₪1,000 per month ($140 to $280 USD, €130 to €260 EUR) above comparable units further from these amenities.
Which neighborhoods are most popular with expats in Israel right now?
The top three neighborhoods most popular with expats in Israel are the Old North and Neve Tzedek in Tel Aviv, Rehavia and the German Colony in Jerusalem, and Herzliya Pituach on the coast.
Expats renting in these Israel neighborhoods typically pay between ₪8,000 and ₪18,000 per month ($2,220 to $5,000 USD, €2,050 to €4,620 EUR) for a 2-bedroom apartment, with furnished units commanding the highest premiums.
These neighborhoods attract expats in Israel because they offer English-friendly services, proximity to international schools and embassies, walkable urban or beach lifestyle, and established expat communities for networking.
The nationalities most represented in these Israel expat neighborhoods include Americans, French, British, and South Africans, many of whom are either long-term residents or on corporate assignments with multinational companies.
And if you are also an expat, you may want to read our exhaustive guide for expats in Israel.
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Who rents, and what do tenants want in Israel right now?
What tenant profiles dominate rentals in Israel?
The top three tenant profiles that dominate the rental market in Israel are young professionals working in tech and services (concentrated in Gush Dan), students near major universities, and families who have been priced out of the purchase market.
In Israel's rental market, young professionals represent roughly 35% to 40% of demand, students account for about 20% to 25%, and families make up approximately 25% to 30%, with expats and others filling the remainder.
Young professionals in Israel typically seek modern 1-2 bedroom apartments near work centers, students look for affordable studios or shared apartments near campuses, and families search for 3-4 bedroom units with outdoor space in quieter neighborhoods.
If you want to optimize your cashflow, you can read our complete guide on how to buy and rent out in Israel.
Do tenants prefer furnished or unfurnished in Israel?
In Israel's rental market, approximately 70% to 75% of tenants prefer unfurnished apartments for long-term leases, while about 25% to 30% seek furnished units, particularly in expat-heavy areas and for shorter-term stays.
The typical rent premium for furnished apartments in Israel compared to unfurnished is about ₪1,000 to ₪2,500 per month ($280 to $690 USD, €260 to €640 EUR), depending on the quality of furnishings and the neighborhood.
In Israel, furnished rentals are most preferred by expats on corporate assignments, students, new immigrants (olim) who have not yet shipped belongings, and anyone seeking a short-term rental of less than one year.
Which amenities increase rent the most in Israel?
The top five amenities that increase rent the most in Israel are dedicated parking, an elevator (especially in buildings above three floors), a mamad (reinforced safe room), high-quality air conditioning, and a private balcony or rooftop terrace.
In Israel, dedicated parking can add ₪500 to ₪1,500 per month ($140 to $420 USD, €130 to €385 EUR), an elevator adds ₪300 to ₪800 ($85 to $220 USD, €75 to €205 EUR), a mamad adds ₪400 to ₪1,000 ($110 to $280 USD, €100 to €260 EUR), modern A/C adds ₪200 to ₪500 ($55 to $140 USD, €50 to €130 EUR), and a balcony adds ₪300 to ₪700 ($85 to $195 USD, €75 to €180 EUR).
In our property pack covering the real estate market in Israel, we cover what are the best investments a landlord can make.
What renovations get the best ROI for rentals in Israel?
The top five renovations that get the best ROI for rental properties in Israel are kitchen modernization, bathroom upgrades, A/C system replacement, adding built-in storage or wardrobes, and refreshing flooring and paint.
In Israel, a kitchen refresh typically costs ₪15,000 to ₪40,000 ($4,170 to $11,110 USD, €3,850 to €10,260 EUR) and can increase rent by ₪400 to ₪1,000 per month, while a bathroom upgrade costs ₪10,000 to ₪25,000 ($2,780 to $6,940 USD, €2,560 to €6,410 EUR) and adds ₪300 to ₪700 monthly.
Renovations that tend to have poor ROI for landlords in Israel include luxury finishes that exceed neighborhood standards, swimming pool installations in buildings without existing pools, and structural changes that require lengthy permit processes.
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 Israel as of 2026?
What's the vacancy rate for rentals in Israel as of 2026?
As of early 2026, the estimated vacancy rate for rental properties in Israel is approximately 2% to 4% nationwide, reflecting a tight market where demand consistently outpaces available supply.
Across different neighborhoods in Israel, vacancy rates range from as low as 1% to 2% in prime Tel Aviv and central Jerusalem locations to 5% to 8% in peripheral development towns with less demand.
The current vacancy rate in Israel is below the historical average of around 4% to 6%, indicating that the rental market remains exceptionally tight, particularly in the country's economic centers.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Israel.
How many days do rentals stay listed in Israel as of 2026?
As of early 2026, the average number of days rentals stay listed in Israel is approximately 14 to 21 days nationwide, though this varies dramatically by location and property type.
In Israel's hottest markets like central Tel Aviv and prime Jerusalem, well-priced rentals are often leased within 7 to 14 days, while properties in peripheral cities like Be'er Sheva or Haifa suburbs may take 30 to 60 days to find a tenant.
Compared to one year ago, days-on-market in Israel has remained relatively stable, with slight compression in the most desirable neighborhoods as demand continues to exceed supply in those areas.
Which months have peak tenant demand in Israel?
The peak months for tenant demand in Israel are August through October and January through March, when academic years begin, job transitions occur, and post-holiday relocations are common.
The specific factors driving seasonal demand patterns in Israel include university semester schedules, the timing of military service releases, corporate hiring cycles, and the cultural pattern of avoiding moves during major Jewish holidays.
The months with the lowest tenant demand in Israel are typically April through June and November through December, when holidays like Passover, Sukkot, and Hanukkah slow relocation activity.
Buying real estate in Israel can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will my monthly costs be in Israel as of 2026?
What property taxes should landlords expect in Israel as of 2026?
As of early 2026, landlords in Israel should expect to pay arnona (municipal property tax) of approximately ₪500 to ₪1,200 per month ($140 to $330 USD, €130 to €310 EUR) if they are responsible for it, though in most standard leases the tenant pays arnona directly.
The realistic range of annual arnona in Israel varies from about ₪4,000 ($1,110 USD, €1,030 EUR) for a small apartment in a peripheral city to ₪18,000 ($5,000 USD, €4,620 EUR) or more for a large property in an expensive Tel Aviv municipality.
Arnona in Israel is calculated based on the property's size, location, age, and the specific municipal rate set by each local authority, which means rates can vary significantly even between neighboring cities.
Please note that, in our property pack covering the real estate market in Israel, we cover what exemptions or deductions may be available to reduce property taxes for landlords.
What maintenance budget per year is realistic in Israel right now?
A realistic annual maintenance budget for a typical rental property in Israel is approximately ₪8,000 to ₪12,000 ($2,220 to $3,330 USD, €2,050 to €3,080 EUR), which covers routine repairs, minor fixes, and occasional appliance replacement.
The realistic range of annual maintenance costs in Israel spans from about ₪5,000 ($1,390 USD, €1,280 EUR) for a newer building with minimal issues to ₪20,000 ($5,560 USD, €5,130 EUR) or more for an older walkup apartment requiring frequent repairs.
Landlords in Israel typically set aside about 5% to 10% of annual rental income for maintenance, with those owning older properties in walkup buildings budgeting toward the higher end of that range.
What utilities do landlords often pay in Israel right now?
In Israel, landlords most commonly pay building insurance (if applicable) and sometimes contribute to the va'ad bayit (building committee fee), while tenants typically handle electricity, water, gas, arnona, and internet directly.
When landlords in Israel do cover the va'ad bayit, the typical monthly cost is about ₪100 to ₪250 ($28 to $70 USD, €26 to €64 EUR), with an average around ₪150 per month for standard buildings and higher for buildings with elevators, gardens, or security.
The common practice in Israel is for leases to clearly specify that tenants pay all usage-based utilities, with landlords only covering structural building costs and any building committee fees not passed through to the tenant.
How is rental income taxed in Israel as of 2026?
As of early 2026, rental income in Israel can be taxed under three main routes: a full exemption for rents up to approximately ₪5,650 per month (roughly $1,570 USD, €1,450 EUR), a flat 10% tax on gross rental income with no deductions, or regular marginal income tax rates with allowable expense deductions.
The main deductions landlords can claim against rental income in Israel when choosing the regular tax route include depreciation on the building (excluding land), mortgage interest, maintenance and repair costs, property management fees, and insurance expenses.
A common tax mistake landlords in Israel make is failing to properly track the exemption ceiling, which is adjusted periodically, and inadvertently exceeding it without switching to a taxable reporting method, which can trigger penalties.
We cover these mistakes, among others, in our list of risks and pitfalls people face when buying property in Israel.
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 Israel, 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 (CBS) Rent Tables | This is Israel's official rent dataset, collected and published by the national statistics agency. | We use it as the backbone for typical rents by apartment size and for city and district comparisons. We also use its methodology notes to explain what average rent means in practice. |
| CBS CPI Media Release | It's an official CPI publication that explains how rents feed into national inflation statistics. | We use it to cross-check rental growth rates and to separate renewal increases from new-tenant jumps. We use it to keep our 2026 outlook consistent with measured inflation dynamics. |
| CBS Main Price Indices Hub | It's the CBS's official portal for the latest index releases and historical data access. | We use it to validate that we're referencing the right CBS index family and publication cadence. We use it as a verifiable entry point for readers who want to check the series themselves. |
| Bank of Israel Housing Market Chapter | This is the central bank's structured analysis of Israel's housing market and macro drivers. | We use it to ground the reasons behind demand and supply pressure, including rates, construction, and financing. We also use it to support the forward-looking narrative for rent growth in 2026. |
| Bank of Israel Annual Report | It's the official index of BoI annual reports and supporting materials. | We use it to help readers verify where the housing chapter sits in the wider BoI publication. We use it as a stable citation anchor for BoI commentary. |
| Knesset Research Center Taxation Report | This is a parliamentary research document that summarizes rules and thresholds with policy context. | We use it to cross-check the rental income tax exemption ceiling and the structure of tax options. We use it to keep our tax basics section aligned with how policymakers describe the system. |
| Gov.il Rental Income Reporting Page | This is an official government service page that states the reporting trigger clearly. | We use it to cite the latest clearly stated exemption ceiling figure available in official text. We then estimate the January 2026 practical threshold from that baseline and explain the assumption. |
| Kol Zchut Rights Portal | It's a long-running public-interest portal that summarizes Israeli legal and benefit rules in plain language. | We use it to explain the three common landlord taxation routes in simple terms. We use it as a cross-check against government and parliamentary descriptions so we don't oversimplify. |
| Reuters BoI Macro Forecasts Coverage | Reuters is a major wire service that reports central bank statements and forecasts with discipline. | We use it to anchor a realistic 2026 macro backdrop for our rent growth outlook. We use it only where it clearly attributes expectations to the Bank of Israel. |
| Nefesh B'Nefesh Arnona Guide | It's a widely used nonprofit resource for practical Israeli household administration. | We use it to explain, in plain language, that arnona is usually paid by the occupant unless negotiated otherwise. We use it to keep the monthly costs section realistic for how leases are commonly structured. |
| Globes Va'ad Bayit Fee Survey | It's a major Israeli business newspaper and this item cites a named survey with numeric results. | We use it to give a grounded typical building committee fee number instead of guessing. We use it as a sanity check against what brokers commonly quote for older versus newer buildings. |
| PwC Worldwide Tax Summaries Israel | PwC is a major professional services firm and this is a standardized reference used globally. | We use it to corroborate the existence and basic logic of the 10% gross-tax option for residential rent. We use it as a cross-check so our tax summary matches how professionals describe it. |
| Globes CBS Rent Reporting | It's a national business outlet, and it explicitly points back to CBS figures. | We use it only to translate CBS table outputs into an easy narrative for readers. We do not use it as the underlying dataset when CBS numbers are available directly. |
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