Madeira vacation rental guide

Some links on this page are affiliate links: if you book through them, we may earn a commission at no extra cost to you. How this works

Visitors staying a week or more in Funchal often find a flat makes more sense than a hotel room: a kitchen, a washing machine, space for a family, and the market a walk away. A Madeira vacation rental in Funchal is also the most common way to stay: of the 240 places in the city with a guest score of 7.0 or more, 135 are apartments, 24 holiday homes, 3 villas and 11 aparthotels.

They score well. The median apartment scores 9.0, above the median hotel at 8.6, and 70 apartments score 9.0 or more. On a sample search for two adults, two nights from 10 to 12 October 2026, the median apartment cost about €383, against about €477 for the median hotel. Prices move with the dates.

The best-ranked, weighing each score by the reviews behind it, is King David Suites, by the cathedral, 9.1 from 564 reviews for about €362.

Where the flats are

The common mistake is to book a flat by its photographs and find it at the top of a hill. In Funchal, the address decides the stay.

Many of the well-rated flats are in the old city. The Sé, the centre around the cathedral, has 29 of the rentals above the floor, with a median score of 8.9 and a median price of about €404 for the two October nights. São Martinho, the Lido, also has 32 rentals of all kinds, at a median of 8.8.

Santa Maria, the old town, has 16 rentals with the highest median score, 9.2, for about €391. São Pedro, uphill to the west of the centre, has 16 at a median of 8.0 and the lowest median price, about €297.

In the centre, King David Suites, on Rua da Alfândega, is 200 m from the marina and 2 minutes from the cathedral. The Marketplace by Storytellers, on Rua Fernão de Ornelas, is 300 m from the cathedral, with a kitchenette, 8.5 from 781 reviews for about €305. Tanoeiros Residence, 200 m from the cathedral, has a fully equipped kitchen with a dishwasher, 9.4 from 230 for about €576.

Outside the flat centre, check the gradient: some flats in São Roque, Santa Luzia and São Pedro are up steep streets.

King David Suites is located on Rua da Alfândega, just 200 metres from the Funchal marina.

Apartments or aparthotels

Visitors often assume a flat means no service at all. The aparthotels sit in between.

An apartment is a flat, usually with a key collection and no reception; an aparthotel is a hotel of studios and suites with kitchenettes, a reception and often a pool. Eleven aparthotels clear the floor.

The Suite Hotel Eden Mar, a four-star on the Lido, has a kitchenette in every unit, a lagoon-style pool and a spa, 8.7 from 541 reviews for about €626. The Terrace Mar Suite Hotel, a recently renovated four-star, has a rooftop pool and kitchenettes, 8.6 from 683 for about €275. The ASPA Studios, a three-star in São Pedro, scores 8.8 from 488 for about €296, and the Pestana Casino Studios, by the casino, 8.6 from 975 for about €555.

For the most reviewed flats, Living Funchal iNN, on Rua do Carmo, has 1,029 reviews at 8.8, for about €306, and PIER HOUSE, on Rua dos Murças 200 m from the marina, 912 at 8.5, for about €479.

A flat suits a week with the market: the Mercado dos Lavradores opens Monday to Friday from 07:00 to 19:00 and Saturday from 07:00 to 14:00, on the municipality's market page.

Pools and parking

People often book a flat in the old town and then look for somewhere to park. Check the parking first.

A holiday rental Madeira visitors take for a family often needs a pool and a car space, and not every flat has them. Among the apartments, holiday homes and villas above the floor, 54 list an outdoor pool or a private pool, and 76 list free parking.

In the old town, Apartments Madeira Barreirinha has a rooftop pool, sea views, a kitchenette, a washing machine and free on-site parking, 9.4 from 299 reviews for about €422. On the Lido, several flats in the apartment blocks of São Martinho share a pool, and the Apartamentos Quinta Mãe dos Homens, above the old town, have an outdoor pool and views over the bay, 8.5 from 728 for about €299.

Without a car, pick a flat near the city buses: a trip costs €2.05 on board and €1.45 on a GIRO card on the 2026 tariff, and the centre and the Lido are the best served.

With a car, ask the host where to park before you book, and whether the space is on site or on the street.

Villas and holiday homes

The mistake is to look for a villa in the centre. The houses are on the hills around it.

A private holiday villa in Madeira's capital is rare: the October search found three villas and 24 holiday homes above the floor, with a median score of 8.9 and a median price of about €482 for the two nights.

Casa do Loureiro, a villa of three bedrooms and two bathrooms with sea views, a terrace, a garden, a full kitchen and free parking, scores 10.0 from 37 reviews for about €945. Villa Monte, in Monte, with two bedrooms, a sun terrace, a garden and sea views, 12 minutes from the Monte Palace garden, scores 9.7 from 9 for about €417.

Among the holiday homes, Brooklyn&Fennel House, a ground-floor house of two bedrooms and two bathrooms with a garden and a patio in São Roque, scores 9.8 from 88 reviews for about €273, and Vila Francisco 9.4 from 83 for about €536.

The houses on the hills have views and quiet, and the streets up to them are steep: a car, or a taxi each evening, is part of the plan.

Before you book

Visitors often compare the nightly price and forget what comes on top. Check the extras and the rules.

For a villa rental in Madeira, the price of the house is only part of the cost. Funchal charges a tourist tax of €2 per guest per night, for at most 7 consecutive nights, on visitors over 12 who do not live in Madeira, collected by the host.

Check the check-in: many flats have no reception, so agree a time for the keys, or a key box, before you travel, especially after a late flight. Ask whether a cleaning fee or a deposit is charged on top.

The dearest villa in the October sample, Villa Quebra Costas in São Pedro, with two bedrooms, three bathrooms and a year-round outdoor pool, cost about €1,799 for the two nights, from 8 reviews at 7.5; a house with few reviews is a larger risk than a hotel with many.

For a family, a flat with two bedrooms and a kitchen often costs less than two hotel rooms, and the market and the shops are a walk away in the centre.

Common questions

Are apartments in Funchal cheaper than hotels?

On a sample October weekend, the median apartment cost about €383 for two nights for two, against about €477 for the median hotel.

Where are the best apartments in Funchal?

In the centre around the cathedral and in the old town, where the median scores are 8.9 and 9.2 and everything is a walk away.

Do Funchal holiday rentals have parking?

Some do: 76 of the 173 well-rated rentals list free parking; ask the host before you book.