Median Income and Evolution (2026)
Rents in the district of Faro (Algarve): +7.9% year-on-year (T2, 2024→2025, INE). Monchique had the 3rd-largest increase in the country (+28.9%). Explicit geographic level and methodology — Aluseg Income Index.
Aluseg Income Index · Data: INE, Q1 2026 · Updated July 2026
Annual increase in the district of Faro (T2, 2024→2025)
Monchique — 3rd-largest municipal increase in the country (€516 → €665)
District's position in the 2025 national ranking of increases
Legal rent-update limit in 2026
The indicator is the median income of new contracts (not the average) — see methodology. Geographic level: district.
| Indicator | Value | Period |
|---|---|---|
| Annual change in median income (T2, district of Faro) | +7,9% | 2025 vs. 2024 |
| National average for the same period | +7,4% | 2025 vs. 2024 |
| Legal update coefficient | 2,24% | 2026 |
| Largest increase in the district (Monchique) | +28,9% | 2025 vs. 2024 |
| Median T2 rent in Monchique | 665 € | Year 2025 |
Insufficient data to publish a reliable estimate of the median monthly income in the municipality of Faro for this period.
The +7.9% increase in 2025 places the district of Faro in 12th place among the 20 districts and regions, slightly above the national average (+7.4%) — in a year in which 180 of the 206 municipalities analyzed rose above the legal limit of 2.24%.
The strongest signal comes from inland Algarve: Monchique recorded the third-largest municipal increase in the country in 2025 — +28.9%, from €516 to €665 for a T2 — an example of the national pattern of pressure shifting from established centers to smaller municipalities.
Medians by typology are available at the national level (Portugal). This edition of the Index does not publish medians by typology at municipality level.
| Typology | Median 2024 | Median 2025 | Change |
|---|---|---|---|
| T0 | 408 € | 439 € | +7,5% |
| T1 | 623 € | 670 € | +7,5% |
| T2 | 683 € | 734 € | +7,4% |
| T3 | 824 € | 885 € | +7,3% |
| T4+ | 846 € | 909 € | +7,4% |
With no municipal median published for Faro in this edition, the national medians by typology serve as a general reference — values on the Algarve coast are typically above these medians, but the Index does not yet publish municipality-level detail.
Among the Algarve municipalities, the only one featured in this edition’s national tables is Monchique, with the 3rd-largest increase in the country in 2025:
| Municipality | T2 Rent (2024) | T2 Rent (2025) | Change |
|---|---|---|---|
| Monchique | 516 € | 665 € | +28,9% |
With no municipal median for Faro, the comparison is made at the level of 2025 district-level changes and reference urban municipalities:
Full municipality-level figures in the Aluseg Income Index.
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The Aluseg Income Index aggregates median housing rents by municipality, district and typology, based on 42,037 records. Primary source: INE — Statistics Portugal (housing rents, 2024 and 2025; quarterly series up to Q1 2026). The values on this page refer to the T2 typology, the most representative of the rental market, and relate to new contracts — they do not reflect the rents of contracts already in force, whose annual update is capped at the legal coefficient (2.24% in 2026).
The indicator is the median (the middle value: half of contracts fall below it, half above), which is more robust than the average in markets with extreme values. The year-on-year change compares with the same quarter of the previous year; the quarter-on-quarter change, with the immediately preceding quarter. The values on this page refer to the district of Faro; regional aggregates always indicate the geographic level (municipality or district).
Update frequency: every new quarter of the INE series. Current edition: data up to Q1 2026 (July 2026 edition). Full methodology and national series in the Aluseg Income Index.
Aluseg Income Index data on rents in Faro and the Algarve are free to use for editorial purposes, with attribution and a link.
How to cite: «Source: Aluseg Income Index (INE), Q1 2026.» — with a link to aluseg.com.
Last updated: July 2026 (data up to Q1 2026). Breakdowns by district, municipality or typology available on request: hello@aluseg.com. Full national tables in the Aluseg Income Index.
For practical context on renting out and marketing a property, see the rental market guide for the district of Lisbon.
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