Cap Rate Calculator British Columbia
A $750,000 purchase at $2,363 a month is a 2.94% cap after 3.7% vacancy.
Use in-place rent unless the unit is vacant and you can legally reprice it.
CMHC October 2025 Vancouver CMA. Condo vacancy stayed well below purpose-built. Last verified October 1, 2025.
Vancouver's residential rate is among the lowest in Canada, which is why a thin cap rate here is a price problem, not a tax problem.
Leave at 0 if you self-manage. 8% is a typical third-party fee.
Cap rate
2.94%
Gross yield
3.78%
Expense ratio
19.2%
Cap rate is $22,052 of NOI on a $750,000 price. It does not include mortgage payments, land transfer tax, or closing costs. 2.3% limit in 2026, vacancy decontrol.
Vancouver pairs Canada's highest prices with its lowest property tax rate. Cap rate is crushed by the denominator. Property transfer tax on the way in is the cash cost the cap rate never shows.
A $750,000 purchase rented at $2,363 a month, with 3.7% vacancy, produces $22,052 of NOI — a 2.94% cap rate. Vacancy last verified October 1, 2025.
How the British Columbia cap rate is built
Gross rent $28,356, minus $1,049 of vacancy, minus $5,254 of operating costs, leaves $22,052 of NOI. Divide by $750,000.
- The $2,363 rent is CMHC's October 2025 purpose-built two-bedroom average for the Vancouver CMA.
- Condo vacancy (1.5%) is still well below purpose-built (3.7%). A rented strata unit and a purpose-built apartment are not the same vacancy risk.
- The empty-homes tax and speculation and vacancy tax sit outside this calculator. They are a separate annual drag on vacant or under-used dwellings.
Vacancy in Vancouver CMA
Vancouver's purpose-built vacancy rate rose to 3.7% in 2025, the highest since 1988. CMHC flagged rented condos as the main competitor to new purpose-built stock. Using a US-style 5% vacancy line here overstates the hole in NOI.
2.3% limit in 2026, vacancy decontrol
B.C. landlords may raise rent once every 12 months, with three full months' notice, by no more than the yearly limit. That limit is 2.3% for 2026 and 2.2% for 2027. Vacancy decontrol still applies: a new tenancy can be priced at market. The cap rate on an occupied unit is therefore a sitting-rent number, not a market-rent number.
British Columbia cap rate FAQs
What is a typical cap rate in British Columbia?
On a $750,000 Vancouver CMA two-bedroom rented at $2,363 a month, with 3.7% vacancy, the cap rate is 2.94%. That is $22,052 of NOI. Change the rent to the amount on the actual rent roll.
How is cap rate calculated in British Columbia?
Cap rate is NOI divided by purchase price. In British Columbia, NOI starts with the Vancouver CMA two-bedroom sitting rent, minus 3.7% vacancy, property tax, insurance, and maintenance. The mortgage and land transfer tax are not in the number.
Is there rent control in British Columbia?
B.C. landlords may raise rent once every 12 months, with three full months' notice, by no more than the yearly limit. That limit is 2.3% for 2026 and 2.2% for 2027. Vacancy decontrol still applies: a new tenancy can be priced at market. The cap rate on an occupied unit is therefore a sitting-rent number, not a market-rent number.
What vacancy rate should I use in British Columbia?
Vancouver's purpose-built vacancy rate rose to 3.7% in 2025, the highest since 1988. CMHC flagged rented condos as the main competitor to new purpose-built stock. Using a US-style 5% vacancy line here overstates the hole in NOI.
Does the British Columbia cap rate include land transfer tax?
No. Cap rate is unlevered operating income over price. British Columbia 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 (Vancouver CMA vacancy 3.7%, 2-bed rent $2,363)British Columbia, last verified October 1, 2025
- B.C. Residential Tenancy Branch: 2026 rent increase limit is 2.3%British Columbia, 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 a BC agent who has closed investment purchases in this market.