Cap Rate Calculator Nova Scotia
A $380,000 purchase at $1,826 a month is a 3.88% cap after 2.7% vacancy.
Use in-place rent unless the unit is vacant and you can legally reprice it.
CMHC October 2025 Halifax CMA. Condo vacancy stayed well below purpose-built. Last verified October 1, 2025.
Starter assumption of 1.1% of value. HRM rates vary by area — use the tax bill.
Leave at 0 if you self-manage. 8% is a typical third-party fee.
Cap rate
3.88%
Gross yield
5.77%
Expense ratio
30.8%
Cap rate is $14,745 of NOI on a $380,000 price. It does not include mortgage payments, land transfer tax, or closing costs. 5% cap on existing tenancies through 2027.
Halifax looks like a mid-5% cap-rate market on CMHC sitting rent. The 5% cap is why that sitting rent lags what a vacant unit would fetch — and why turnover is the whole underwriting question.
A $380,000 purchase rented at $1,826 a month, with 2.7% vacancy, produces $14,745 of NOI — a 3.88% cap rate. Vacancy last verified October 1, 2025.
How the Nova Scotia cap rate is built
Gross rent $21,912, minus $592 of vacancy, minus $6,576 of operating costs, leaves $14,745 of NOI. Divide by $380,000.
- The $1,826 rent is CMHC's October 2025 purpose-built two-bedroom average for Halifax.
- New stock had high vacancy. An older Peninsula walk-up and a 2024 completion are not the same lease-up risk.
Vacancy in Halifax CMA
Halifax purpose-built vacancy was 2.7% in 2025. Same-sample two-bedroom rents still rose 6.7% because landlords used the cap and because turnover rents sit far above sitting rents. A 2.7% vacancy line and a sitting-rent roll is the conservative pair.
5% cap on existing tenancies through 2027
Nova Scotia's interim rent cap is 5% a year from 1 January 2026 through 31 December 2027, with four months' notice on a year-to-year or month-to-month lease. The cap applies to existing tenancies; a new tenant on a vacant unit can be charged market rent. CMHC recorded a 23% jump on two-bedroom turnover units in 2025 versus 4% for sitting tenants.
Nova Scotia cap rate FAQs
What is a typical cap rate in Nova Scotia?
On a $380,000 Halifax CMA two-bedroom rented at $1,826 a month, with 2.7% vacancy, the cap rate is 3.88%. That is $14,745 of NOI. Change the rent to the amount on the actual rent roll.
How is cap rate calculated in Nova Scotia?
Cap rate is NOI divided by purchase price. In Nova Scotia, NOI starts with the Halifax CMA two-bedroom sitting rent, minus 2.7% vacancy, property tax, insurance, and maintenance. The mortgage and land transfer tax are not in the number.
Is there rent control in Nova Scotia?
Nova Scotia's interim rent cap is 5% a year from 1 January 2026 through 31 December 2027, with four months' notice on a year-to-year or month-to-month lease. The cap applies to existing tenancies; a new tenant on a vacant unit can be charged market rent. CMHC recorded a 23% jump on two-bedroom turnover units in 2025 versus 4% for sitting tenants.
What vacancy rate should I use in Nova Scotia?
Halifax purpose-built vacancy was 2.7% in 2025. Same-sample two-bedroom rents still rose 6.7% because landlords used the cap and because turnover rents sit far above sitting rents. A 2.7% vacancy line and a sitting-rent roll is the conservative pair.
Does the Nova Scotia 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 (Halifax CMA vacancy 2.7%, 2-bed rent $1,826)Nova Scotia, last verified October 1, 2025
- Nova Scotia: interim rent cap remains in place until 31 December 2027Nova Scotia, 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 NS agent who has closed investment purchases in this market.