Cap Rate Calculator Alberta
A $350,000 purchase at $1,914 a month is a 4.87% cap after 5% vacancy.
Use in-place rent unless the unit is vacant and you can legally reprice it.
CMHC October 2025 Calgary CMA. Condo vacancy stayed well below purpose-built. Last verified October 1, 2025.
Calgary's combined residential rate. Edmonton's is higher — use the Edmonton property tax calculator if the building is there.
Leave at 0 if you self-manage. 8% is a typical third-party fee.
Cap rate
4.87%
Gross yield
6.56%
Expense ratio
21.9%
Cap rate is $17,044 of NOI on a $350,000 price. It does not include mortgage payments, land transfer tax, or closing costs. No provincial rent cap.
No land transfer tax and a higher vacancy rate is the Alberta trade. The cap rate looks generous next to Toronto until you haircut rent for the empty months CMHC is already measuring.
A $350,000 purchase rented at $1,914 a month, with 5% vacancy, produces $17,044 of NOI — a 4.87% cap rate. Vacancy last verified October 1, 2025.
How the Alberta cap rate is built
Gross rent $22,968, minus $1,148 of vacancy, minus $4,776 of operating costs, leaves $17,044 of NOI. Divide by $350,000.
- The $1,914 rent is CMHC's October 2025 purpose-built two-bedroom average for Calgary. Turnover rent actually fell year over year.
- Edmonton's purpose-built vacancy was 3.8%, not 5.0%. Switch the vacancy field if the building is there.
- Registration fees on closing are a few hundred to a couple of thousand dollars, not the five-figure land transfer tax in Ontario or B.C.
Vacancy in Calgary CMA
Calgary's purpose-built vacancy rate was unchanged at 5.0% in 2025, the highest among major CMAs, even as the rental stock grew 11%. The top rent quartile sat at 6.7%. A 5% vacancy line is the CMA average, not a conservative stress test for a new building.
No provincial rent cap
Alberta does not set an annual percentage cap on private residential rents. Increases still require proper notice under the Residential Tenancies Act, but the next lease can follow the market. That is why a Calgary cap rate is more sensitive to the vacancy number than an Ontario one: you can reprice, but only if the unit actually turns over and leases.
Alberta cap rate FAQs
What is a typical cap rate in Alberta?
On a $350,000 Calgary CMA two-bedroom rented at $1,914 a month, with 5% vacancy, the cap rate is 4.87%. That is $17,044 of NOI. Change the rent to the amount on the actual rent roll.
How is cap rate calculated in Alberta?
Cap rate is NOI divided by purchase price. In Alberta, NOI starts with the Calgary CMA two-bedroom sitting rent, minus 5% vacancy, property tax, insurance, and maintenance. The mortgage and land transfer tax are not in the number.
Is there rent control in Alberta?
Alberta does not set an annual percentage cap on private residential rents. Increases still require proper notice under the Residential Tenancies Act, but the next lease can follow the market. That is why a Calgary cap rate is more sensitive to the vacancy number than an Ontario one: you can reprice, but only if the unit actually turns over and leases.
What vacancy rate should I use in Alberta?
Calgary's purpose-built vacancy rate was unchanged at 5.0% in 2025, the highest among major CMAs, even as the rental stock grew 11%. The top rent quartile sat at 6.7%. A 5% vacancy line is the CMA average, not a conservative stress test for a new building.
Does the Alberta cap rate include land transfer tax?
No. Cap rate is unlevered operating income over price. Alberta land transfer tax or registration fees are cash on closing and belong in cash-on-cash, not here.
Cap rate by city
Cap rate calculators for other provinces
Sources
- CMHC 2025 Rental Market Report (Calgary CMA vacancy 5.0%, 2-bed rent $1,914)Alberta, last verified October 1, 2025
This calculator is an estimate for planning. Cap rate turns on the rent you can legally collect, empty months, and the tax bill — none of which a national average replaces. Confirm against the rent roll and the latest assessment notice.
Comparing provinces before you buy?
The national cap rate calculator ranks every province on the same price and on a typical local deal. When you are ready, get matched with an AB agent who has closed investment purchases in this market.