Cap Rate Calculator Ottawa
A $450,000 purchase at $1,926 a month is a 3.19% cap after 3% vacancy.
Use in-place rent unless the unit is vacant and you can legally reprice it.
CMHC October 2025 Ottawa CMA. Condo vacancy stayed well below purpose-built. Last verified October 1, 2025.
Ottawa's combined residential rate is about 1.23% — materially higher than Toronto's. Paste the tax bill if the building is in a rural ward with a different rate.
Leave at 0 if you self-manage. 8% is a typical third-party fee.
Cap rate
3.19%
Gross yield
5.14%
Expense ratio
36.0%
Cap rate is $14,341 of NOI on a $450,000 price. It does not include mortgage payments, land transfer tax, or closing costs. 2.1% guideline, vacancy decontrol on most post-2018 units.
Ottawa matches Toronto's 3.0% vacancy and almost matches the two-bedroom rent. The mill rate does not. A 1.23% tax line on a $450,000 building is a bigger NOI haircut than Toronto's 0.77% on a more expensive one, and that is before you compare land transfer tax.
A $450,000 purchase rented at $1,926 a month, with 3% vacancy, produces $14,341 of NOI — a 3.19% cap rate. Vacancy last verified October 1, 2025.
How the Ottawa cap rate is built
Gross rent $23,112, minus $693 of vacancy, minus $8,078 of operating costs, leaves $14,341 of NOI. Divide by $450,000.
- The $1,926 rent is CMHC's October 2025 purpose-built two-bedroom average for the Ottawa CMA, up 3.4%. Condo two-bedrooms averaged $2,503.
- Turnover two-bedrooms were more than five times the average rent increase. A cap rate on asking rent is not a cap rate on the rent roll.
- Gatineau is the Quebec side of the CMA. It is not this calculator — Quebec's TAL rules apply there.
Vacancy in Ottawa CMA
Ottawa's purpose-built vacancy was 3.0% in 2025 — the same headline as Toronto, a different market. Units built after 2015 ran at 6.7%. Sandy Hill, Lowertown, Downtown, and Gloucester North/Orléans had more empty units than the CMA average. Rental condos were 0.6% vacant.
2.1% guideline, vacancy decontrol on most post-2018 units
Ontario's 2026 rent increase guideline is 2.1% for units that are covered. Units first occupied after 15 November 2018 are exempt. CMHC noted that about two thirds of Ottawa's 3.4% sitting-rent growth in 2025 came from units that turned over; vacant two-bedrooms were 17% more expensive than occupied ones.
Ottawa cap rate FAQs
What is a typical cap rate in Ottawa?
On a $450,000 Ottawa CMA two-bedroom rented at $1,926 a month, with 3% vacancy, the cap rate is 3.19%. That is $14,341 of NOI. Change the rent to the amount on the actual rent roll.
How is cap rate calculated in Ottawa?
Cap rate is NOI divided by purchase price. In Ottawa, NOI starts with the Ottawa CMA two-bedroom sitting rent, minus 3% vacancy, property tax, insurance, and maintenance. The mortgage and land transfer tax are not in the number.
Is there rent control in Ottawa?
Ontario's 2026 rent increase guideline is 2.1% for units that are covered. Units first occupied after 15 November 2018 are exempt. CMHC noted that about two thirds of Ottawa's 3.4% sitting-rent growth in 2025 came from units that turned over; vacant two-bedrooms were 17% more expensive than occupied ones.
What vacancy rate should I use in Ottawa?
Ottawa's purpose-built vacancy was 3.0% in 2025 — the same headline as Toronto, a different market. Units built after 2015 ran at 6.7%. Sandy Hill, Lowertown, Downtown, and Gloucester North/Orléans had more empty units than the CMA average. Rental condos were 0.6% vacant.
Does the Ottawa cap rate include land transfer tax?
No. Cap rate is unlevered operating income over price. Ottawa land transfer tax or registration fees are cash on closing and belong in cash-on-cash, not here.
Other Ontario cities
Sources
- CMHC 2025 Rental Market Report (Ottawa CMA vacancy 3.0%, 2-bed rent $1,926)Ottawa, last verified October 1, 2025
- Ontario: 2026 rent increase guideline is 2.1%Ottawa, 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 Ottawa agent who has closed investment purchases in this market.