Rental Property Cash Flow Calculator Hamilton
A $400,000 two-bedroom at $2,100 a month, 20% down at 4.50%: −$962 a month.
Condo loads a $495 monthly fee. House drops the fee and adds a 5% capital reserve.
Price and rent
Add every unit's rent for a plex.
CMHC October 2025, Hamilton CMA.
Financing
20% is the minimum on a rental you won't live in.
Preloaded at 4.5%: advertised 5-year fixed rates plus a typical rental premium.
Ontario land transfer tax plus about $3,250 in legal, title and inspection.
Operating costs
Hamilton's combined residential rate is about 1.50% — nearly double Toronto's. That is the line that moves NOI here, not the rent.
Hamilton condo fees average about $0.62 per sq ft a month.
0 if you self-manage. 8% is a typical fee.
Roof, windows, furnace. A condo's reserve fund covers the building.
Utilities you pay, accounting, licensing.
Monthly cash flow
−$962
Cash-on-cash
−13.2%
Cap rate
2.43%
Debt coverage
0.46
Break-even rent
$3,153 a month
Your rent is $1,053 short.
Down payment to break even
64% down
About $253,880 of equity before the rent covers every cost.
At renewal
One point higher (5.50%): −$1,145 a month. Two points higher (6.50%): −$1,335 a month.
What cash flow leaves out
Year one pays down $7,131 of principal. Cash flow plus that paydown is −$4,417, or −5.04% on the cash you put in, before appreciation and income tax.
Estimate for planning, not financial advice. Cash flow is before income tax. Rent rules: 2.1% guideline, vacancy decontrol on most post-2018 units.
Hamilton prices rose with the GTA while its purpose-built rents did not, and its property tax rate is nearly double Toronto's. Rented condos average far more than the purpose-built stock in CMHC's survey, so the rent you pick moves this page more than anywhere else.
Much of Hamilton's rental stock is older houses and duplexes. Use house or plex, add the rent from every unit, and keep the capital reserve on.
Cash flow on a typical Hamilton rental condo
Gross rent of $25,200, less $907 of vacancy and $14,588 of operating costs, leaves $9,705 of net operating income, a 2.43% cap rate. The mortgage takes $21,253. What is left is −$11,549 a year: a −13.2% cash-on-cash return on $87,725 invested, with debt coverage of 0.46.
Break-even rent
$3,153
Monthly rent for zero cash flow
Down to break even
64%
Equity needed at today’s rate
As a house or plex
−$572
No condo fee, 5% capital reserve, same price and rent
Year one also pays down $7,131 of principal. Counting that, the total year-one return is −$4,417 before appreciation and tax.
Which Hamilton rent to put in
Most calculators take one rent figure and never say whose it is. There are 3 benchmarks for a Hamiltontwo-bedroom, and they are not interchangeable. Asking rent is what a new tenant pays for a vacant unit. CMHC’s averages include tenants who moved in years ago at lower rents. Buying a condo to lease out, you will usually get close to asking rent; buying a building with tenants in place, you get the rent roll.
| Rent benchmark | Monthly rent | Cash flow / month | Cash-on-cash |
|---|---|---|---|
| Asking rentAverage two-bedroom asking rent, mid-2026: what a new tenant pays. | $2,100 | −$962 | −13.2% |
| CMHC condo rentCMHC October 2025 average for two-bedroom condos rented out by owners. | $2,831 | −$294 | −4.02% |
| CMHC purpose-built rentCMHC October 2025 purpose-built two-bedroom average, mostly sitting tenants. | $1,656 | −$1,368 | −18.7% |
Hamiltoncash flow at today’s rates and at renewal
The preload is 4.50%: advertised 5-year fixed rates of about 4.09% to 4.39% in mid-September 2026 plus a typical rental premium. A longer amortization lowers the payment but not the interest rate; a renewal one or two points higher is the risk a five-year term leaves you with.
| Financing | Payment | Cash flow / month |
|---|---|---|
| 4.50%, 25-year amortization (preloaded) | $1,771 | −$962 |
| 4.50%, 30-year amortization | $1,613 | −$805 |
| Renewal at 5.50% | $1,953 | −$1,145 |
| Renewal at 6.50% | $2,143 | −$1,335 |
| Down payment | Cash down | Cash flow / month | Cash-on-cash |
|---|---|---|---|
| 20% down | $80,000 | −$962 | −13.2% |
| 35% down | $140,000 | −$630 | −5.12% |
| 50% down | $200,000 | −$298 | −1.72% |
Uninsured rental mortgages qualify at the greater of 5.25% or the contract rate plus 2 points. Cash-on-cash includes closing costs in the cash invested.
Cash to close on a Hamilton rental
- Down payment (20%)
- $80,000
- Ontario land transfer tax
- $4,475
- Legal, title insurance, inspection
- $3,250
- Total
- $87,725
First-time buyer rebates do not apply to a property you won’t live in. If the deal runs negative, add a reserve for the shortfall: at −$962 a month, a year of carrying costs is $11,549.
Vacancy and rent rules in Hamilton
Hamilton CMA purpose-built vacancy rose to 3.6% in 2025, the highest since the pandemic. CMHC blamed international-student outflows and more rented condos. West End and Mountain (McMaster, Mohawk) ran hotter. Downtown purpose-built competed with a wave of condo completions.
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. Hamilton's cheaper purpose-built sitting rent does not mean cheaper strata — CMHC's condo two-bedroom average was $2,831.
- The $1,656 rent is CMHC's October 2025 purpose-built two-bedroom average for the Hamilton CMA, up 1.6%. Condo two-bedrooms averaged $2,831.
- Purpose-built supply barely grew in 2025. The empty units came from student demand falling and from condos competing for the same tenants.
- A 1,337-unit construction pipeline in Q3 2025 is future vacancy risk, not this year's rent roll.
Hamilton rental cash flow FAQs
Does a rental property cash flow in Hamilton?
Not on a typical leveraged purchase. A $400,000 two-bedroom condo rented at the $2,100 average asking rent, with 20% down at 4.50% over 25 years, comes to −$962 a month after vacancy, tax, insurance, maintenance and a $495 condo fee. Change the price, rent and fee to the listing you are looking at.
What rent do I need to break even on a Hamilton rental?
About $3,153 a month on the preloaded $400,000 condo at 20% down. That is $1,053 above the average asking rent.
How much down payment makes a Hamilton rental cash flow positive?
About 64% down, or roughly $256,000, before the average asking rent covers the mortgage and every operating cost at 4.50%.
How much cash do I need to buy a rental property in Hamilton?
On a $400,000 purchase: $80,000 for the minimum 20% down, about $4,475 in Ontario land transfer tax, and roughly $3,250 for legal, title insurance and inspection, or about $87,725 in total before any reserve for negative cash flow.
Is there rent control in Hamilton?
Ontario's 2026 rent increase guideline is 2.1% for units that are covered. Units first occupied after 15 November 2018 are exempt. Hamilton's cheaper purpose-built sitting rent does not mean cheaper strata — CMHC's condo two-bedroom average was $2,831.
What vacancy rate should I use for a Hamilton rental?
Hamilton CMA purpose-built vacancy rose to 3.6% in 2025, the highest since the pandemic. CMHC blamed international-student outflows and more rented condos. West End and Mountain (McMaster, Mohawk) ran hotter. Downtown purpose-built competed with a wave of condo completions.
Nearby cities
How the method works
The Canada rental property cash flow calculator explains the formula, the 1% and 50% rules, down payment rules for rentals and how rental income is taxed, and ranks all ten cities on the same deal.
Sources
- CMHC 2025 Rental Market Report (Hamilton CMA vacancy 3.6%, 2-bed rent $1,656)
- Ontario: 2026 rent increase guideline is 2.1%
- Bank of Canada: policy rate held at 2.25% (September 2, 2026)
- Ratehub: advertised 5-year fixed rates
- nesto: Canadian mortgage rates
- bestrates.ca: investment property rates run 0.20% to 0.60% above owner-occupied
- CMHC: Income Property mortgage loan insurance
- OSFI: Clarifying guidance on rental income and mortgage classification (2025)
- Rentals.ca National Rent Report (asking rents)
- CRA: Rental Income guide (T4036)
- Urbanation and CIBC: GTA Condo Investment Report (July 2024)
- CBC News: More than half of GTA condo investors losing money (2023)
Rates checked September 13, 2026. CMHC rents and vacancy are from the October 2025 Rental Market Survey; asking rents are mid-2026 averages compiled from Rentals.ca and CMHC. Condo fees are city averages per square foot on an 800sq ft two-bedroom. This calculator is an estimate for planning, not financial or tax advice. Replace every preload with the listing, the lease and the lender’s quote.