Cap Rate Calculator Vancouver
A $750,000 purchase at $2,363 a month is a 2.94% cap after 3.7% vacancy.
Use in-place rent unless the unit is vacant and you can legally reprice it.
CMHC October 2025 Vancouver CMA. Condo vacancy stayed well below purpose-built. Last verified October 1, 2025.
Vancouver's residential rate is among the lowest in Canada. A thin cap rate here is a price problem, not a tax problem.
Leave at 0 if you self-manage. 8% is a typical third-party fee.
Cap rate
2.94%
Gross yield
3.78%
Expense ratio
19.2%
Cap rate is $22,052 of NOI on a $750,000 price. It does not include mortgage payments, land transfer tax, or closing costs. 2.3% limit in 2026, vacancy decontrol.
Vancouver pairs Canada's highest prices with its lowest property tax rate. Cap rate is crushed by the denominator. Property transfer tax on the way in is the cash cost this number never shows, and the empty-homes tax sits outside it too.
A $750,000 purchase rented at $2,363 a month, with 3.7% vacancy, produces $22,052 of NOI — a 2.94% cap rate. Vacancy last verified October 1, 2025.
How the Vancouver cap rate is built
Gross rent $28,356, minus $1,049 of vacancy, minus $5,254 of operating costs, leaves $22,052 of NOI. Divide by $750,000.
- The $2,363 rent is CMHC's October 2025 purpose-built two-bedroom average for the Vancouver CMA, up 2.2%.
- Condo vacancy (1.5%) is still well below purpose-built (3.7%). A rented strata unit is a tighter market than this preload.
- The empty-homes tax and speculation and vacancy tax are a separate annual drag on vacant or under-used dwellings. They are not in cap rate.
Vacancy in Vancouver CMA
Vancouver's purpose-built vacancy rate rose to 3.7% in 2025, the highest since 1988. Rented condos were 1.5% vacant with a $2,900 two-bedroom average. Turnover two-bedroom rent fell to $2,696 from $2,883 in 2024.
2.3% limit in 2026, vacancy decontrol
B.C. landlords may raise rent once every 12 months, with three full months' notice, by no more than the yearly limit. That limit is 2.3% for 2026 and 2.2% for 2027. Vacancy decontrol still applies. The cap rate on an occupied unit is a sitting-rent number.
Vancouver cap rate FAQs
What is a typical cap rate in Vancouver?
On a $750,000 Vancouver CMA two-bedroom rented at $2,363 a month, with 3.7% vacancy, the cap rate is 2.94%. That is $22,052 of NOI. Change the rent to the amount on the actual rent roll.
How is cap rate calculated in Vancouver?
Cap rate is NOI divided by purchase price. In Vancouver, NOI starts with the Vancouver CMA two-bedroom sitting rent, minus 3.7% vacancy, property tax, insurance, and maintenance. The mortgage and land transfer tax are not in the number.
Is there rent control in Vancouver?
B.C. landlords may raise rent once every 12 months, with three full months' notice, by no more than the yearly limit. That limit is 2.3% for 2026 and 2.2% for 2027. Vacancy decontrol still applies. The cap rate on an occupied unit is a sitting-rent number.
What vacancy rate should I use in Vancouver?
Vancouver's purpose-built vacancy rate rose to 3.7% in 2025, the highest since 1988. Rented condos were 1.5% vacant with a $2,900 two-bedroom average. Turnover two-bedroom rent fell to $2,696 from $2,883 in 2024.
Does the Vancouver cap rate include land transfer tax?
No. Cap rate is unlevered operating income over price. Vancouver land transfer tax or registration fees are cash on closing and belong in cash-on-cash, not here.
Cap rate calculators for other cities
Provincial defaults live on the British Columbia cap rate calculator.
Sources
- CMHC 2025 Rental Market Report (Vancouver CMA vacancy 3.7%, 2-bed rent $2,363)Vancouver, last verified October 1, 2025
- B.C. Residential Tenancy Branch: 2026 rent increase limit is 2.3%Vancouver, 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 Vancouver agent who has closed investment purchases in this market.