There has been much discussion about the rising cost of house rentals in Portugal, with prices often seen as incompatible with family incomes. However, this reality is mainly confined to certain areas of the country, particularly in large urban centres and their outskirts. In fact, there are municipalities where rental prices can be as low as 300 euros per month. In this article, discover the 10 most affordable municipalities to rent a house in Portugal.
According to data from the National Statistics Institute (INE) published at the end of March 2025, only 42 municipalities had rental prices above the national average of 7.97 euros/m2 in 2024. This means that the majority of the 212 municipalities with available data – out of a total of 308 – have rental prices lower than the national average.
To find the municipalities with the lowest rental prices, one must travel inland, particularly to the districts of Bragança, Vila Real, Viseu, and Portalegre.
The cheapest municipalities to rent a house in Portugal
The 10 cheapest municipalities to rent a house are all located inland. The least expensive of them all in 2024 was Vila Flor, in the Bragança district, where rental prices were just 2.5 euros per square metre. This means that renting a 100-square-metre house here had an average cost of 250 euros per month.
In addition to Vila Flor, there are six other municipalities with rental prices below 300 euros for 100-square-metre homes: Vila Nova de Foz Côa, in Guarda; Mirandela, in Bragança; Sátão, in Viseu; Miranda do Douro, in Bragança; Campo Maior, in Portalegre; and Gouveia, in Guarda.
Just above the 300-euro mark for monthly rent are the municipalities of Moimenta da Beira, Macedo de Cavaleiros, and Valpaços, according to data from the National Statistics Institute (INE), based on the number of new rental contracts signed in 2024 in each municipality.
The most expensive municipalities to rent a house in Portugal
On the opposite end of the spectrum are the municipalities with the highest rental prices in the country, with Lisbon leading the way at 15.93 euros per square metre. In the Portuguese capital, a 100-square-metre home had an average rental cost of 1,593 euros last year.
The second most expensive municipality to rent a house in 2024 is Cascais (15.31 euros), followed by Oeiras (13.8 euros/m²) and Porto (12.58 euros/m²). Renting a 100-square-metre home in these municipalities cost an average of over 1,250 euros per month.
Most of the municipalities in the top 10 list of the most expensive for renting a house are located in Greater Lisbon, with the exceptions being Porto, Funchal, and Matosinhos.
"The territorial pattern of rental prices per square metre for new rental contracts by municipality highlights, with values above the national average, all municipalities in Greater Lisbon and the Setúbal Peninsula, the Algarve (11 out of 14 with available data), and the Porto Metropolitan Area (6 out of 17)," noted the INE in the same report.
The 25 cheapest municipalities to rent a home in Portugal in 2025
A quick look at the rental map of Portugal reveals clear differences in prices across the country in the second quarter of 2025. The cost of renting a home ranges from a high of €22.2 per square metre (€/m²) in Lisbon to a low of €6.8/m² in Castelo Branco. Using data from idealista, Portugal’s leading property marketplace, we reveal the 25 cheapest places to rent a home in the country.
Lisbon long-term rentals: a guide to finding your ideal home in Portugal’s capital
Lisbon has become one of Europe’s most sought-after cities for long-term living. With its rich history, vibrant culture, and stunning coastline, Portugal’s capital offers a high quality of life that attracts expats, digital nomads, and retirees alike. If you’re considering a long-term rental in Lisbon, this guide will help you navigate the market and find your perfect home.
Portugal ranks 8th for highest tourist accommodation prices in the EU
Portugal has risen from 10th to 8th place among EU countries with the highest overnight prices in 2024. It ranks 13th out of 43 countries.
Rent payment protection insurance: 6 tips for choosing the best option in Portugal
The best way for landlords to protect their rental income is by taking out a good rent payment default insurance. However, before doing so, it is important to understand which essential aspects the insurance should have to be effective. In this article, we explain how landlords can choose the right rent payment protection insurance, which will help mitigate risks in renting out the property to tenants.
Rental prices in Portugal continue to slow their growth
Rental prices paid by tenants in Portugal have been on a decelerating trend since the beginning of 2025. After experiencing the sharpest slowdown in recent years in January, February saw another decline in the pace of rent increases.
Renting a house in Portugal: supply soars by 59% at the end of 2024
The Portuguese rental market experienced a slowdown in mid-2024, likely due to both a lack of available properties and new incentives for home purchases, such as lower interest rates or the IMT exemption for young buyers. This reduced activity in the rental market, alongside higher profitability for properties purchased to let and the arrival of new real estate developments on the market, may help explain why the supply of rental properties in Portugal increased by 59% at the end of 2024 compare
The 10 cheapest places to rent in Portugal in 2024
House rents in Portugal continue to rise, at a time when supply is not keeping up with the dynamic demand. However, looking at the national landscape, there are very different realities. Most municipalities actually have house rents below the national average, which stood at €7.60 per square metre (€/m²) in the last year ending in June. And there are even 10 municipalities with house rents below €3/m², making them the cheapest in the country.