Cap Rate Calculator Edmonton
A $280,000 purchase at $1,603 a month is a 4.76% cap after 3.8% vacancy.
Use in-place rent unless the unit is vacant and you can legally reprice it.
CMHC October 2025 Edmonton CMA. Condo vacancy stayed well below purpose-built. Last verified October 1, 2025.
Edmonton's combined residential rate is about 1.04% — higher than Calgary's 0.66%. The cheaper rent does not make the tax line smaller.
Leave at 0 if you self-manage. 8% is a typical third-party fee.
Cap rate
4.76%
Gross yield
6.87%
Expense ratio
27.9%
Cap rate is $13,341 of NOI on a $280,000 price. It does not include mortgage payments, land transfer tax, or closing costs. No provincial rent cap.
Edmonton is not Calgary with a different skyline. Vacancy is 3.8% not 5.0%, sitting rent is $1,603 not $1,914, and the mill rate is higher. A provincial Alberta preload that uses Calgary's numbers overstates rent and vacancy on an Edmonton address.
A $280,000 purchase rented at $1,603 a month, with 3.8% vacancy, produces $13,341 of NOI — a 4.76% cap rate. Vacancy last verified October 1, 2025.
How the Edmonton cap rate is built
Gross rent $19,236, minus $731 of vacancy, minus $5,164 of operating costs, leaves $13,341 of NOI. Divide by $280,000.
- The $1,603 rent is CMHC's October 2025 purpose-built two-bedroom average for the Edmonton CMA, up 3.5%. Condo two-bedrooms averaged $1,655.
- Newer two-bedrooms (completed mid-2022 to mid-2025) leased slower because they priced above the stock average.
- Turnover rose to 28.8%. Downtown, West Jasper Place, Southwest, and East Central saw most of that movement.
Vacancy in Edmonton CMA
Edmonton's purpose-built vacancy rose to 3.8% in 2025. Completions stayed well above history while youth unemployment slowed demand. West Jasper Place, Mill Woods, and Castle Downs took the largest increases, especially in newer two-bedrooms. Northeast, Fort Saskatchewan, and Strathcona County stayed tighter. Rented condos were 1.7% vacant.
No provincial rent cap
Alberta does not set an annual percentage cap on private residential rents. Proper notice still applies. Edmonton's sitting two-bedroom rent rose 3.5% in 2025; turnover rent only ticked to $1,600. The gap between asking and in-place is thinner here than in Toronto.
Edmonton cap rate FAQs
What is a typical cap rate in Edmonton?
On a $280,000 Edmonton CMA two-bedroom rented at $1,603 a month, with 3.8% vacancy, the cap rate is 4.76%. That is $13,341 of NOI. Change the rent to the amount on the actual rent roll.
How is cap rate calculated in Edmonton?
Cap rate is NOI divided by purchase price. In Edmonton, NOI starts with the Edmonton CMA two-bedroom sitting rent, minus 3.8% vacancy, property tax, insurance, and maintenance. The mortgage and land transfer tax are not in the number.
Is there rent control in Edmonton?
Alberta does not set an annual percentage cap on private residential rents. Proper notice still applies. Edmonton's sitting two-bedroom rent rose 3.5% in 2025; turnover rent only ticked to $1,600. The gap between asking and in-place is thinner here than in Toronto.
What vacancy rate should I use in Edmonton?
Edmonton's purpose-built vacancy rose to 3.8% in 2025. Completions stayed well above history while youth unemployment slowed demand. West Jasper Place, Mill Woods, and Castle Downs took the largest increases, especially in newer two-bedrooms. Northeast, Fort Saskatchewan, and Strathcona County stayed tighter. Rented condos were 1.7% vacant.
Does the Edmonton cap rate include land transfer tax?
No. Cap rate is unlevered operating income over price. Edmonton 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 (Edmonton CMA vacancy 3.8%, 2-bed rent $1,603)Edmonton, 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 Edmonton agent who has closed investment purchases in this market.