Cap Rate Calculator Calgary
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 and its vacancy is lower — open the Edmonton cap rate 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 5% vacancy rate is the Calgary trade. The cap rate looks generous next to Toronto until you haircut rent for the empty months CMHC is already measuring. Edmonton is not this page — vacancy there was 3.8%.
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 Calgary 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.
- Local intelligence told CMHC that lease-up incentives kept the headline vacancy from rising despite the supply jump. Asking rent on a new building is not sitting rent.
- Registration fees on closing are hundreds to a couple of thousand dollars, not Ontario land transfer tax.
Vacancy in Calgary CMA
Calgary's purpose-built vacancy 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%. Turnover two-bedroom rent fell to $1,836 from $1,927. Condo vacancy was 2.2%.
No provincial rent cap
Alberta does not set an annual percentage cap on private residential rents. Increases still require proper notice. NOI can reprice at turnover, which makes the 5.0% vacancy field the binding constraint rather than a guideline.
Calgary cap rate FAQs
What is a typical cap rate in Calgary?
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 Calgary?
Cap rate is NOI divided by purchase price. In Calgary, 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 Calgary?
Alberta does not set an annual percentage cap on private residential rents. Increases still require proper notice. NOI can reprice at turnover, which makes the 5.0% vacancy field the binding constraint rather than a guideline.
What vacancy rate should I use in Calgary?
Calgary's purpose-built vacancy 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%. Turnover two-bedroom rent fell to $1,836 from $1,927. Condo vacancy was 2.2%.
Does the Calgary cap rate include land transfer tax?
No. Cap rate is unlevered operating income over price. Calgary land transfer tax or registration fees are cash on closing and belong in cash-on-cash, not here.
Other Alberta cities
Cap rate calculators for other cities
Provincial defaults live on the Alberta cap rate calculator.
Sources
- CMHC 2025 Rental Market Report (Calgary CMA vacancy 5.0%, 2-bed rent $1,914)Calgary, 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 Calgary agent who has closed investment purchases in this market.