A T2 apartment purchased at a good price in a student city can generate mediocre rental returns if the rent is capped, if the energy performance certificate (DPE) requires work, or if the chosen tax regime is not the right one. Investors often focus solely on the purchase price and gross rent, while the actual profitability depends on three or four less visible parameters.
Rental Financing in 2026: More Selective Access Conditions
According to the ACPR, the share of rental investment in new mortgage loans represented 12% of housing credit production in 2025, which is three points lower than a year earlier. Banks are filtering rental applications more rigorously: the personal contribution and debt ratio weigh more than the expected return.
In practice, it is observed that institutions often require a contribution higher than what was requested a few years ago. A self-financed rental project at 110% (price + notary fees + work) struggles to pass current credit committees.
To prepare a solid application, one can document the investment on Immo Relax to compare financing scenarios before approaching banks. The goal: to present a financing plan that already incorporates vacancy and actual charges, not just the theoretical gross rent.
Rent Control and Tight Zones: An Often Underestimated Parameter in Profitability Calculation
Paris, Lyon, Villeurbanne, Bordeaux, Montpellier: these cities apply a cap on rent levels. Meanwhile, the regulation of rent increases in tight zones remains in effect until July 31, 2027. Projected profitability based on free rent increases is therefore overestimated in these areas.
The classic trap: one buys a property calculating the return based on market rent, without checking if it exceeds the increased reference rent. Upon lease renewal or in case of inspection, the tenant can request alignment. The loss can represent several points of annual return.
How to Check Before Buying
- Consult the local rent observatory of the targeted city to know the median reference rent per square meter, by neighborhood and type of housing
- Compare this increased reference rent with the rent you plan to charge, taking into account the area and number of rooms
- Check if the municipality is on the list of territories that have deliberated to apply rent control (the list changes every year)
This work takes an hour, but it prevents discovering after signing that the net return falls below the break-even point.
Jeanbrun Device and Trade-off Between Unfurnished and Furnished Rentals
Law No. 2026-103 of February 19, 2026, through its Article 47, modifies the fiscal balance between unfurnished and furnished rentals. This device, called “Jeanbrun,” changes the game for investors who systematically favored furnished rentals for their BIC regime and depreciation benefits.
The trade-off between unfurnished and furnished can no longer be based solely on past tax advantages. One must now simulate both regimes with the new rules before choosing the rental mode. Feedback varies on this point depending on asset situations, but the “all furnished” reflex is no longer automatically winning.
Thermal Sieves: A Factor in the Scarcity of Supply
The gradual exit of F and G classified housing from the rental market reduces the available supply. For an investor, this creates two opposing situations:
- Buying a property already renovated (DPE D or better) in an area where supply is dwindling, which secures occupancy rates and rent stability
- Buying a thermal sieve at a discounted price, renovating it, and then re-renting it with a compliant DPE, incorporating the cost of renovations into the net profitability calculation
- Doing nothing and ending up with a property banned from rental, which nullifies any rental return
The second option can be profitable, provided that the insulation work and the expected energy class gain have been precisely estimated. A property renovated from F to D in a tight area increases in rental and asset value.
Net Profitability After Tax: The Only Indicator That Matters
Gross profitability (annual rent divided by purchase price) gives a rough estimate, nothing more. Only net profitability after tax reflects what the investment actually yields.
Between gross and net, we subtract condominium fees, property tax, non-occupant owner insurance, property management fees (if delegated), estimated vacancy, and routine maintenance costs. Then we apply taxation according to the chosen regime (micro-property, actual, micro-BIC, actual BIC).
A gross return that seems attractive can end up halved once these items are included. This is why comparing two properties based solely on their gross return leads to poor decisions.
Property Management: Delegate or Manage Yourself
Property management typically represents a percentage of the rent received. This cost reduces net return, but it must be weighed against the time spent (tenant search, inventory, chasing unpaid rents, managing claims). For a single property in one’s own city, one can manage it oneself. For multiple properties or remotely, delegation secures rental income at the cost of a reduced return.
The profitability calculation of a rental project is not limited to a formula. It is necessary to cross-reference financing, the applicable taxation after the Jeanbrun law, local rent control, and the energy status of the property. A well-constructed spreadsheet with these four variables provides a more reliable picture than any promised return displayed in an advertisement.
