Cap Rate Calculator Prince Edward Island
A $320,000 purchase at $1,350 a month is a 3.28% cap after 3.1% vacancy.
Use in-place rent unless the unit is vacant and you can legally reprice it.
CMHC October 2025 Charlottetown (vacancy control). Condo vacancy stayed well below purpose-built. Last verified October 1, 2025.
Starter assumption of 1.0% of value. Replace with the provincial and municipal amounts on the tax bill.
Leave at 0 if you self-manage. 8% is a typical third-party fee.
Cap rate
3.28%
Gross yield
5.06%
Expense ratio
33.2%
Cap rate is $10,488 of NOI on a $320,000 price. It does not include mortgage payments, land transfer tax, or closing costs. Vacancy control, annual increase capped at 3%.
Everywhere else in this calculator, turnover is how you close the gap between sitting rent and market rent. On the Island, that gap often stays.
A $320,000 purchase rented at $1,350 a month, with 3.1% vacancy, produces $10,488 of NOI — a 3.28% cap rate. Vacancy last verified October 1, 2025.
How the Prince Edward Island cap rate is built
Gross rent $16,200, minus $502 of vacancy, minus $5,210 of operating costs, leaves $10,488 of NOI. Divide by $320,000.
- The $1,350 rent is a starter assumption. The lawful rent on the unit is the input that matters, not a neighbour's asking rent.
- Confirm the current year's allowable increase with the Island Regulatory and Appeals Commission before you underwrite growth.
Vacancy in Charlottetown (vacancy control)
Vacancy preload is the national 3.1% purpose-built average. On a vacancy-controlled unit the bigger risk is not empty months — it is buying a below-market rent roll you cannot reprice.
Vacancy control, annual increase capped at 3%
P.E.I. is the province where you generally cannot reset rent to market just because the tenant left. The Residential Tenancy Act lets the Rental Office set an allowable annual increase that cannot exceed 3%. A further increase needs an application and is itself capped. A cap rate that uses asking rent on a vacant unit, rather than the lawful rent attached to that unit, is the wrong number.
Prince Edward Island cap rate FAQs
What is a typical cap rate in Prince Edward Island?
On a $320,000 Charlottetown (vacancy control) two-bedroom rented at $1,350 a month, with 3.1% vacancy, the cap rate is 3.28%. That is $10,488 of NOI. Change the rent to the amount on the actual rent roll.
How is cap rate calculated in Prince Edward Island?
Cap rate is NOI divided by purchase price. In Prince Edward Island, NOI starts with the Charlottetown (vacancy control) 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 Prince Edward Island?
P.E.I. is the province where you generally cannot reset rent to market just because the tenant left. The Residential Tenancy Act lets the Rental Office set an allowable annual increase that cannot exceed 3%. A further increase needs an application and is itself capped. A cap rate that uses asking rent on a vacant unit, rather than the lawful rent attached to that unit, is the wrong number.
What vacancy rate should I use in Prince Edward Island?
Vacancy preload is the national 3.1% purpose-built average. On a vacancy-controlled unit the bigger risk is not empty months — it is buying a below-market rent roll you cannot reprice.
Does the Prince Edward Island 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: Rent Control and the Affordability of Rental Housing in Canada — P.E.I. vacancy controlPrince Edward Island, last verified October 1, 2025
- P.E.I. Residential Tenancy Act: allowable annual increase cannot exceed 3%Prince Edward Island, last verified October 1, 2025
- CMHC 2025 Rental Market Report (Canada purpose-built vacancy 3.1%)Prince Edward Island, 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 PE agent who has closed investment purchases in this market.