Comparing the profitability of a rental investment based on the type of rental, the tax regime, and the location results in significant differences in net yield. The parameters have changed since the beginning of 2025, with the end of the Pinel scheme, the reintegration of LMNP depreciation into the capital gains calculation, and the implementation of new energy constraints. Measuring these variables before investing in rental real estate helps avoid mistakes that can accumulate over several years of ownership.
Gross and net rental yield: differences between unfurnished and furnished rentals
The choice between unfurnished and furnished rental is not just about the rent amount. It affects taxation, tenant turnover, and maintenance costs. The table below summarizes the structural differences based on the tax rules in effect in 2026.
| Criterion | Unfurnished rental | Furnished rental (LMNP) |
|---|---|---|
| Average rent | Standard base | About 20% higher than unfurnished rental |
| Current tax regime | Property income (micro or real) | BIC (micro or real) |
| Depreciation of the property | No | Yes (under the real regime) |
| Reintegration upon resale | Not applicable | Depreciation reintegrated into capital gains since February 15, 2025 |
| Lease duration | Minimum 3 years | 1 year (9 months for a student) |
| Vacancy rate | Lower (long lease) | Higher (frequent turnover) |
Furnished rentals show a higher gross yield due to higher rents and the deduction of depreciation under the real regime. However, LMNP depreciation is now reintegrated into capital gains upon sale, which reduces the net advantage over the total holding period.
An investor planning to resell in the medium term (less than ten years) must factor this tax cost into their simulation. For those who are looking at a long-term wealth-building strategy, furnished rental remains more favorable in terms of annual cash flow. Resources like https://community-immo.fr/ allow investors to compare these scenarios.
Housing Recovery Scheme (Jeanbrun Law): conditions and limits
Law No. 2026-103 of February 19, 2026, created the “Housing Recovery” scheme, which succeeds the Pinel. This depreciation mechanism targets new collective housing and certain heavily renovated old housing.
- Eligibility period: from February 21, 2026, to December 31, 2028. Any acquisition outside this window is excluded from the scheme.
- Individual houses are not eligible, which directs investment towards condominiums.
- The scheme is based on depreciation, not a direct tax reduction. The tax impact therefore depends on the chosen declaration regime and the amount of rental income.
Compared to the Pinel (which offered a tax reduction of 12, 18, or 21% depending on the commitment duration), the mechanism is different. The benefit is reflected in the taxable base, not in the tax owed. For a lightly taxed investor, the gain may be marginal.
EPC and rental ban: the property risk to anticipate
Since January 1, 2025, properties rated G on the EPC can no longer be rented in situations provided for by regulation. The schedule plans for the exclusion of properties rated F in 2028, and then E in 2034.
This schedule transforms the energy performance diagnosis into a priority purchasing criterion. A property rated F purchased today without energy renovation work will lose its rental capacity in less than two years.
Renovation costs and profitability after work
Renovating a property rated F or G to a D or C class represents a significant budget item (insulation, joinery, heating system). These works are deductible from property income under the real regime for unfurnished rentals, or depreciable under LMNP in the real regime.
The EPC must be analyzed before purchase, not after. Acquiring an energy-intensive property while counting on future renovation without having estimated the costs or checked technical feasibility (condominium, architectural constraints) exposes one to a negative net yield for several years.
Rental tension and purchase prices: data that guide city choice
The contraction of the rental supply in recent years fuels tension in major metropolitan areas but does not automatically guarantee a good yield.
A tight market means a low vacancy rate, which secures income. Conversely, high purchase prices in these same areas compress gross yield. The trade-off is between cash flow security and profitability level.
Rent control: a parameter to integrate
In cities where rent control applies, the maximum rent is capped by prefectural order. This constraint represents a legal risk for landlords who set a rent above the ceiling: in case of dispute, the tenant can obtain a refund of the overpayment.
A profitable rental investment relies on a compliant and sustainable rent, not on an inflated rent that exposes one to litigation. Integrating the increased reference rent into the yield simulation avoids unpleasant surprises.
The rental real estate market in 2026 rewards investors who cross-reference tax data, energy constraints, and the reality of the local market. The disappearance of the Pinel, the reintegration of LMNP depreciation, and the EPC schedule modify the profitability parameters on which previous strategies relied. Each acquisition deserves an updated simulation, line by line.
