Real estate investment France 2026: 5 secondary towns delivering 6-8% rental yields

Investing in Paris or Lyon? The days are numbered for finding decent yields (3-4% gross). France's secondary towns offer a better alternative: 6-8% rental yields, reasonable entry prices, and strong appreciation potential. Discover the 5 towns that will transform your property investment portfolio in 2026.

Why secondary towns are booming in 2026?

Major cities have become too expensive. A studio apartment in Paris requires €500,000 and barely yields 3% gross. In the provinces, you get the same yields for €150,000-€200,000. But it's not just low prices that make secondary towns attractive: it's also demographics.

By 2026, trends are accelerating: flexible remote work, quality schools, good quality of life, reasonable cost of living. Families are leaving major cities. Students are arriving in masses. Expatriate workers are seeking attractive but affordable towns.

Result: explosive rental demand, stable or declining supply, and purchase prices that haven't caught up yet. It's the perfect recipe for an investor: buy low, rent high, watch your wealth grow.

The 5 best secondary towns in France for investing in 2026

1. Albi (Tarn) - The brilliant student everyone overlooks

Albi is possibly the best opportunity of 2026. The town doesn't make real estate headlines, but it has all the ingredients for success: a dynamic university (4,500 full-time students), a prestigious engineering school (ISAE-Supaéro with campus expansion), a solid local economy, and a beautifully renovated medieval city center.

Price per m²: €1,850 to €2,150

Typical budget: Renovated 1-bed = €140,000-€165,000 | 2-bed = €180,000-€220,000

Gross rental yield: 7.2 to 8.5%

Property types: Furnished studios/1-beds for students (€450-€550/month), unfurnished 1-beds (€550-€700/month), small rental buildings (4-6 units).

Key projects 2026: Renovation of 150 small units (former workers' homes), improved university transport, new student residence (500 beds), business incubator development.

Demographics: Growing population (+2.3% per year), 60% of students stay after graduation (rare retention rate).

Case study - Yannick, investor: "I bought 2 studios in Albi at the end of 2023 for €135,000 each. They rent for €500/month furnished. Yield: 4.4% before expenses. But by late 2025, I rented one to a French-language school for expats for €650/month (9 months/year). The other to students. Actual yield: 6.8%. And studios now resell for at least €155,000. I have €40,000 in appreciation plus 3 years of profitability."

2. Valence (Drôme) - The strategic crossroads between Lyon and Avignon

Valence benefits from perfect geographic positioning: between Lyon (100km, 1h15 by TGV), Avignon (100km), Marseille (200km). It's the ideal convergence point for remote workers wanting to live in the provinces but access major cities easily. The TGV station plus bus hub make it a hub for students and workers.

Price per m²: €2,000 to €2,450

Typical budget: Renovated 1-bed = €155,000-€195,000 | 2-bed = €220,000-€300,000

Gross rental yield: 6.8 to 7.8%

Property types: Furnished 1-bed/studio (TGV-connected, high short-term demand = €600-€750/month), unfurnished 2-beds for families (€700-€900/month).

Key projects 2026: Renovation of République district (500 homes), new express bus line with agglomeration (10,000 new remote workers), aerospace economic hub (200 jobs), city center improvements.

Population: 62,000 residents, steady growth, strong appeal for 25-40 year-olds seeking flexibility.

Investment specialty: Short-term rentals (Airbnb, weekend rentals). Valence is a destination for couples seeking a Drôme countryside weekend. Yield: up to 9-10% on well-managed short-term rentals.

Case study - Sophie, investor-manager: "I bought a 1-bed in Valence for €175,000 in 2024. I manage it on Airbnb. Occupancy rate: 70%. Gross yield: 8.2%. Net yield after Airbnb management fees (25%): 6.5%. Not bad compared to 2% net in Paris."

3. Chalon-sur-Saône (Burgundy) - The stable town for retirees AND young people

Chalon-sur-Saône is often overlooked by investors, probably because it lacks Dijon's charm or Besançon's size. Yet it benefits from a very stable local economy (river port, sustainable industries), excellent quality of life, and interesting demographics: retirees are arriving (affordable, good schools, entertainment), also attracted by nearby Burgundy (wine, gastronomy).

Price per m²: €1,500 to €1,850

Typical budget: Studio = €95,000-€120,000 | 1-bed = €125,000-€155,000 | Small 6-unit building = €400,000-€550,000

Gross rental yield: 7.0 to 8.2%

Property types to prioritize: Small 4-6 unit buildings (mixed studios/1-beds for retirees and young couples). Stable rentals, very low vacancy (under 3%).

Key projects 2026: Thermal renovation of 200 old units (MaPrimeRénov subsidies), river port improvements (tourism), new economic zone (500 jobs).

Key advantage: Rental income is VERY stable because the tenant mix is diverse: retirees (30%), young couples (40%), stable workers (30%). Very low vacancy, consistent rent increases (+3% per year).

Taxation: Very low property tax rate (0.85%), reducing rental costs by 15-20% compared to other towns.

Case study - Patrick, 10-year investor: "I bought a small 5-unit building in Chalon in 2015 for €320,000. The 5 studios/1-beds rent for about €550 average. Gross yield: 7.2%. I've never had more than a week's vacancy in 10 years. By 2026, the property is worth €450,000. Appreciation plus rentals = the best decision I ever made."

4. Nevers (Nièvre) - For serious yield hunters (9%+)

Nevers is the least glamorous town on this list, but that's precisely why it offers the most aggressive yields. With some of France's lowest per-m² prices and stable rental demand (administrators, universities, social workers), it's the playground for investors seeking maximum gross yield.

Price per m²: €1,200 to €1,550

Typical budget: Studio = €70,000-€90,000 | 1-bed = €100,000-€130,000 | Small 4-unit building = €250,000-€320,000

Gross rental yield: 8.5 to 9.8%

Warning: High yield = buyers need to do their homework. You must be capable of managing tenants, repairs, and vacancies. Cheap properties require more work. It's the classic finance/effort trade-off.

Property types to prioritize: Small studios/1-beds needing renovation (€50,000-€70,000, rented out €650-€750/month). The model: buy cheap, light renovation (€5,000), rent high, 9% yield.

Key projects 2026: City center revitalization (regional subsidies), safety improvements, new senior residence (2,000 beds, creating collateral demand for home care and services).

Population: 58,000 residents, aging but stable population. No major employment loss.

Case study - Gregory, yield hunter: "I bought 4 tiny studios in Nevers between 2022 and 2025. Average budget per studio: €85,000. Rents: €700/month average. Yield: 8.2% gross. I rented them all to Pôle Emploi for training programs (100% guaranteed, direct payment). Zero stress. The appreciation? Properties up 8% per year. Not bad for a 'simple' investment."

5. Amiens (Northern France) - The student town that's bouncing back

Amiens suffered in the 2010-2020 period (deindustrialization). But since 2022, the town is recovering: massive student influx (university expanding campuses 2x), city center renovation, improved TER to Paris, startup tech development (200+ companies).

Price per m²: €2,150 to €2,600

Typical budget: Furnished studio = €90,000-€120,000 | 1-2 bed = €150,000-€200,000

Gross rental yield: 6.5 to 7.8%

Property types to prioritize: Furnished studios (students), small 4-6 unit buildings (families).

Key projects 2026: Cathedral renovation (UNESCO heritage), St-Leu district transformation (artists, creatives), new 2,000-bed student residence, biotechnology hub (500 jobs).

Dynamic: Amiens isn't a sure bet like Albi or Valence, but it's an accelerating growth project. If you're betting on appreciation plus yield, it's interesting.

Case study - Melanie, young investor: "I bought 3 studios in Amiens in 2024 for €105,000 each. Furnished rents: €550/month. Yield: 6.3%. But the town is moving so fast that in 1 year, my properties went to €120,000. Appreciation plus rents = 7.5% annualized real yield. I'm holding for 5 years, then selling."

Comparison table: the 5 towns at a glance

Gross vs net yield: what you need to know

The displayed figures (7%, 8%, 9%) are gross yields. You must deduct:

Average costs per town:

Property tax (0.5-1.5% of property value per year) + homeowner insurance (€2-3 per m²/year) + maintenance/repairs (5% of rent per year) + property management fees if outsourced (7-10% of rents).

Example: 1-bed in Albi bought for €150,000, rented for €700/month (5.6% gross). Costs: property tax €1,500, insurance €300, maintenance €420. Total: €2,220/year. Net yield: (€8,400 - €2,220) / €150,000 = 4.1% net.

Net yield (4-5%) is closer to reality. It's still excellent compared to 1-2% net in Paris. And that's before counting property appreciation.

Investment strategies by profile

For the passive investor (unfurnished rental)

Priority: Chalon-sur-Saône or Albi. Stable populations, consistent rents, low vacancy. Leave the property alone for 10 years, collect rent.

For the active investor (building management)

Priority: Nevers. Look for small 4-6 unit buildings, renovate, rent, sell in 5-7 years. Combined appreciation plus yield = excellent.

For the tech-savvy investor (Airbnb/short-term)

Priority: Valence. Tourist destination, weekend clients, 9-10% yield possible. Tech/startup demand in Amiens too.

For the patient investor (long-term appreciation)

Priority: Amiens. Buy now, sell in 2030+ when the town has doubled in size.

5 tips for smart investing in 2026

Tip #1: Don't look for one property, look for blocks

Buying 1 studio = complex to manage. Buying 3-4 studios = economies of scale. You better amortize management costs, rental vacancies (1 of 4 vacant = 75% occupancy), and resale negotiation.

Tip #2: Verify local employment stability

Before buying, check municipal and INSEE websites. Look for: new jobs, business creation, growing demographics, public investment. Albi and Amiens gain jobs yearly. Nevers stable but stagnant.

Tip #3: Tax regime LMNP (furnished) vs unfurnished

Furnished rental has different tax treatment. Under micro-BIC, you declare 50% of rents; the other half is deductible as expenses. Apparent 8% yield = real fiscal yield ~5%. Consult an accountant; it's deductible.

Tip #4: MaPrimeRénov subsidies = bonus yield

By 2026, thermal renovation subsidies remain substantial. If you buy an old small building, renovate = subsidy covering 40-50% of costs. 40% less cost = 2-3% yield bonus.

Tip #5: Social rental loans = guaranteed government yield

Some towns offer super-low-rate loans (0.5-1.5%) if you commit to renting under PLS ceilings. Lower yield (5-6%) but guaranteed, no vacancy, risk-free.

The 3 mistakes to absolutely avoid

Mistake #1: Buying too cheap just for yield

A €50,000 property yielding €5,000/year (10%!) can be a trap. Why so cheap? Dangerous location? Deteriorated building? Before buying, visit 3 times. Talk to tenants. Check local taxes over 10 years (cheap properties often see fast increases).

Mistake #2: Forgetting about rental vacancies

Even in Albi or Chalon, 3-5% vacancy can happen (student turnover, sudden departure, non-payment). Budget 5% vacancy in your real yield calculation.

Mistake #3: Investing with a too-short mortgage

With a 15-year versus 25-year loan, you finish faster but monthly payments crush your rental yield. Better strategy: longer loan (25 years) + decent yield (7%) = true formula.

2026, the year to take action

Paris and Lyon will never give you 6-8% yields again. It's over. Secondary towns offer this opportunity now, but not for long. By 2027-2028, when investors massively discover these towns, prices will rise and yields will fall.

Albi, Valence, Chalon-sur-Saône, Nevers and Amiens represent a unique sweet spot in 2026: reasonable entry prices, high yields, solid rental demand, and appreciation potential. This is the ideal window.

Your 2026 strategy: choose your investor profile, select the right town, do your site visits, buy before September. Watch your yields accumulate over 5-10 years. Sell when prices have climbed 30-40%.

Ready to build your provincial real estate portfolio? Start by educating yourself on local realities (taxes, management, borrowing). Then launch your purchases. Properties will always be there. The yields won't be.