Cap Rate Calculator Newfoundland and Labrador
A $260,000 purchase at $1,250 a month is a 3.94% cap after 3.1% vacancy.
Use in-place rent unless the unit is vacant and you can legally reprice it.
CMHC October 2025 St. John's. Condo vacancy stayed well below purpose-built. Last verified October 1, 2025.
Starter assumption of 0.9% of value. St. John's mill rate is set annually — use the tax bill.
Leave at 0 if you self-manage. 8% is a typical third-party fee.
Cap rate
3.94%
Gross yield
5.77%
Expense ratio
29.5%
Cap rate is $10,245 of NOI on a $260,000 price. It does not include mortgage payments, land transfer tax, or closing costs. No standard annual percentage cap.
No rent cap and a cheaper entry price than Halifax. The cap rate only holds if the rent you typed is the rent you can collect.
A $260,000 purchase rented at $1,250 a month, with 3.1% vacancy, produces $10,245 of NOI — a 3.94% cap rate. Vacancy last verified October 1, 2025.
How the Newfoundland and Labrador cap rate is built
Gross rent $15,000, minus $465 of vacancy, minus $4,290 of operating costs, leaves $10,245 of NOI. Divide by $260,000.
- The $1,250 rent is a starter assumption for a two-bedroom, not a CMHC CMA average printed in the 2025 major-centres report.
- Closing costs include provincial land transfer tax. That cash is not in the cap rate.
Vacancy in St. John's
Vacancy and rent preloads are starter assumptions (national 3.1% vacancy). Put in trailing empty months and the actual rent roll for St. John's or Corner Brook.
No standard annual percentage cap
Newfoundland and Labrador does not set a standard annual percentage cap on most private residential rents. Timing and notice rules still apply. NOI can follow the market at turnover, so the vacancy and rent fields should be the building's, not a national average.
Newfoundland and Labrador cap rate FAQs
What is a typical cap rate in Newfoundland and Labrador?
On a $260,000 St. John's two-bedroom rented at $1,250 a month, with 3.1% vacancy, the cap rate is 3.94%. That is $10,245 of NOI. Change the rent to the amount on the actual rent roll.
How is cap rate calculated in Newfoundland and Labrador?
Cap rate is NOI divided by purchase price. In Newfoundland and Labrador, NOI starts with the St. John's two-bedroom sitting rent, minus 3.1% vacancy, property tax, insurance, and maintenance. The mortgage and land transfer tax are not in the number.
Is there rent control in Newfoundland and Labrador?
Newfoundland and Labrador does not set a standard annual percentage cap on most private residential rents. Timing and notice rules still apply. NOI can follow the market at turnover, so the vacancy and rent fields should be the building's, not a national average.
What vacancy rate should I use in Newfoundland and Labrador?
Vacancy and rent preloads are starter assumptions (national 3.1% vacancy). Put in trailing empty months and the actual rent roll for St. John's or Corner Brook.
Does the Newfoundland and Labrador cap rate include land transfer tax?
No. Cap rate ignores closing costs, including any provincial land transfer tax. Run those separately on the closing-costs calculator.
Cap rate calculators for other provinces
Sources
- CMHC 2025 Rental Market Report (Canada purpose-built vacancy 3.1%)Newfoundland and Labrador, 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 NL agent who has closed investment purchases in this market.