Affordable rent · RSAA
Affordable rent in Loulé: RSAA rent ceilings
Under the RSAA, the monthly rent in Loulé cannot exceed €550 for a T0, €704 for a T1, €917 for a T2 or €1,129 for a T3. In return, the rent is exempt from IRS.
- Official source: Diário da República
- Portaria n.º 454/2026/1
- Data of 22 October 2026
Photo: No machine-readable author provided. Valternet assumed (based on copyright claims). · CC BY-SA 3.0 · Wikimedia Commons
Key figures
Monthly ceilings in Loulé
The T2 ceiling ranks 12th highest of 308 municipalities and 2nd of 16 in the Faro district.
- T0, maximum rent per month
- €550
- T1, maximum rent per month
- €704
- T2, maximum rent per month
- €917
- T3, maximum rent per month
- €1,129
Simulator
Work out the ceiling for your property
The ceilings
Rent ceilings by size in Loulé
| Size | Ceiling | +10% parking | +10% class A or A+ | +20% both |
|---|---|---|---|---|
| T0 | €550 | €605 | €605 | €660 |
| T1 | €704 | €774.40 | €774.40 | €844.80 |
| T2 | €917 | €1,008.70 | €1,008.70 | €1,100.40 |
| T3 | €1,129 | €1,241.90 | €1,241.90 | €1,354.80 |
| T4 | €1,235 | €1,358.50 | €1,358.50 | €1,482 |
| T5 | €1,447 | €1,591.70 | €1,591.70 | €1,736.40 |
Cumulative uplifts (art. 2(4)). Above T5, add €100 per bedroom beyond the fifth: a T6 has a ceiling of €1,547.
The ceiling against the Loulé market
The T2 ceiling (€917) is 5% below the market estimate: letting at the ceiling costs the landlord about €48 a month. The quartiles of the T2 estimate run from €660 to €1,325: the ceiling sits between the 1st quartile and the median. With private parking and class A or A+, the T2 ceiling rises to €1,100.40 and covers the estimate.
| Size | RSAA ceiling (€/month) | Market est. (€/month) | Difference | Ceiling (€/m²) | Market (€/m²) |
|---|---|---|---|---|---|
| T1 · 48 m² | 704 | 690 | +2 % | 14.67 | 14.38 |
| T2 · 85 m² | 917 | 965 | −5 % | 10.79 | 11.35 |
| T3 · 115 m² | 1,129 | 1,130 | −0 % | 9.82 | 9.83 |
Aluseg estimate, not an official figure: INE median of €11.95/m² (2025, 1,603 new leases) × INE size ratio for Algarve × reference floor area. See the Loulé rental market.
The ceiling against income in Loulé
A person on the median income in Loulé receives €988 a month after income tax (INE, 2024). The T2 ceiling (€917) takes 93 % of that income, against 98 % for the market rent (€965). For a couple on two median incomes, 46 % against 49 %.
Income per person after income tax, not household income: see how we read this number.
Looking for an affordable-rent home in Loulé?
Ask the landlord whether the lease will be in the RSAA (they file it with the IHRU, art. 6) and check the advert: up to €704 for a T1, €917 for a T2.
IRS saved at the ceiling in Loulé
A T2 in Loulé let at the ceiling earns €11,004 a year. Outside the RSAA, IRS on that gross rent would reach €2,751 (25% rate) or €1,100.40 (10% rate, for rents up to €2,300 a month). Under the RSAA, the tax is €0.
| Size | Rent at the ceiling (€/month) | Rent per year (€) | IRS at 25% (€/year) | IRS at 10% (€/year) | IRS under the RSAA (€/year) |
|---|---|---|---|---|---|
| T0 | 550 | 6,600 | 1,650 | 660 | 0 |
| T1 | 704 | 8,448 | 2,112 | 844.80 | 0 |
| T2 | 917 | 11,004 | 2,751 | 1,100.40 | 0 |
| T3 | 1,129 | 13,548 | 3,387 | 1,354.80 | 0 |
| T4 | 1,235 | 14,820 | 3,705 | 1,482 | 0 |
| T5 | 1,447 | 17,364 | 4,341 | 1,736.40 | 0 |
Gross rent, no deductible expenses. Exemption: art. 6 of annex III. Rates: Landlord IRS in 2026.
Ceilings in the Faro district
Loulé has the 2nd highest T2 ceiling of 16 municipalities in the Faro district. The highest is Albufeira (€923) and the lowest is São Brás de Alportel (€526). The district median is €752.50: Loulé is 22% above the median.
| Municipality | T0 (€/month) | T1 (€/month) | T2 (€/month) | T3 (€/month) | T2 market, est. (€/month) | Difference |
|---|---|---|---|---|---|---|
| Albufeira | 554 | 709 | 923 | 1,136 | 925 | 0 % |
| Loulé | 550 | 704 | 917 | 1,129 | 965 | −5 % |
| Lagos | 547 | 701 | 912 | 1,123 | 1,000 | −9 % |
| Portimão | 530 | 679 | 883 | 1,088 | 920 | −4 % |
| Tavira | 521 | 671 | 868 | 1,069 | 910 | −5 % |
| Vila Real de Santo António | 448 | 671 | 866 | 1,034 | 770 | +12 % |
| Alcoutim | 488 | 625 | 814 | 1,002 | – | – |
| Lagoa | 456 | 584 | 760 | 936 | 760 | 0 % |
| Faro | 447 | 572 | 745 | 917 | 780 | −4 % |
| Silves | 444 | 568 | 739 | 911 | 750 | −1 % |
| Vila do Bispo | 421 | 539 | 701 | 864 | 720 | −3 % |
| Aljezur | 384 | 531 | 671 | 788 | 630 | +7 % |
| Castro Marim | 378 | 531 | 671 | 784 | 695 | −3 % |
| Monchique | 364 | 531 | 671 | 784 | 605 | +11 % |
| Olhão | 394 | 531 | 671 | 810 | 685 | −2 % |
| São Brás de Alportel | 316 | 404 | 526 | 648 | 580 | −9 % |
From the highest T2 ceiling to the lowest. Market: Aluseg estimate from INE data; – = no data.
Rent under the RSAA with everything in order
Lease, Tax Authority and rent receipts in a free account.
FAQ: affordable rent in Loulé
What is the maximum rent for a T2 in Loulé under the RSAA?
€917 a month, the 12th highest ceiling in the country. With private parking or an energy certificate of A or A+ it rises to €1,008.70; with both, to €1,100.40.
Is the T2 ceiling in Loulé above or below the market rent?
It is 5% below the Aluseg estimate for an 85 m² T2, about €965 a month (INE, 2025).
How do I get the IRS exemption?
Report the lease to the Tax Authority and file it with the IHRU by 15 January of the following year. See the RSAA guide.
What if the rent goes over the ceiling?
The exemption is lost from the breach and the tax is settled with compensatory interest (art. 7 of annex III).
Sources and methodology
Source: Portaria n.º 454/2026/1, de 13 de outubro (PDF) and Decree-Law 97/2026, annex III, read on 22 October 2026. Uplifts calculated by us (art. 2(4)). For information only, not legal or tax advice.