Real estate investments · Edmonton
What’s the cap rate?
A property’s return before any mortgage: a year’s net operating income against the price, so you can compare deals on a level field.
Cap rate
Running costs
Per monthVacancy starts at 3.8%, the Edmonton-area rental vacancy in CMHC’s October 2025 Rental Market Survey (purpose-built apartments). Property tax starts at Edmonton’s 2026 residential rate, 1.036% of assessed value (City of Edmonton), on the price — type your own if you know it. Insurance, maintenance and management start as round illustrations, not quotes — replace them with real figures for the property.
What price gives what cap rate
With this income, the price that would give each cap rate.
| Cap rate | Price | vs. this price |
|---|
Where the rent goes
A year of rent, split.
- Expenses
- Vacancy
- Net operating income
New builds near this price
New builds from our builder partners near this price, with your down payment, amortization and rate.
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Data is deemed reliable but is not guaranteed accurate by the REALTORS® Association of Edmonton.
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Questions people ask
What is a cap rate?
The capitalization rate is a year’s net operating income — rent after vacancy, less the costs of running the property — divided by the purchase price. It ignores the mortgage, so it compares properties on a level field.
Does the cap rate include the mortgage?
No. To see what happens after the mortgage — monthly cash flow and cash-on-cash return — use the rental property calculator, which takes the same income and costs and adds the financing.
What is “positive” or “negative” leverage?
If a property’s cap rate is higher than the mortgage rate, borrowing adds to your return; if it is lower, each borrowed dollar costs more than the property earns on it. This page compares your cap rate with the published 5-year fixed rate.
What property tax does it start with?
Edmonton’s 2026 residential rate, 1.036% of assessed value (City of Edmonton), on the purchase price, per month. Type the real figure from the property’s tax notice when you have it.
Your guide
Fadi Georgi, REALTOR®
Comparing two or three properties? Send us the addresses — we’ll pull comparable rents and the real tax and condo figures so the cap rates compare like with like.
About these numbers. Estimates only. The cap rate is unleveraged and leaves out mortgage financing, capital expenditures and income taxes. Property tax starts at Edmonton’s 2026 residential rate, 1.036% of assessed value (City of Edmonton). The comparison rate is the lowest advertised 5-yr fixed among major Canadian lenders, via Ratehub (verified October 16, 2026). Confirm every figure for a specific property. Not a mortgage approval or a rate offer — confirm with a licensed mortgage professional. 7th Avenue Realty (MaxWell Polaris), Edmonton.