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Investment Property Calculator

Analyze rental property returns in Edmonton. Cap rate, cash flow, and ROI with live market data.

Live Market Data

BoC rates as of May 14, 2025 · CMHC rents from October 2025 · 2025 mill rates

Policy Rate

2.25%

Vacancy Rate

3.9%

Property Tax Rate*

1.01%

*Property tax rate = 2025 residential mill rate (10.1391 per $1,000 assessed value) from City of Edmonton Open Data. Effective rate: assessed value × 1.014%.

Property & Financing

Owner-Occupied (live in one unit)

Qualify for residential financing: as low as 5% down with CMHC insurance

Investment financing: 20% minimum down payment, no CMHC insurance available.

$84,000 (20.0%) · Total cash needed: $87,420

Current prime: 4.45%

Rental Income

CMHC avg rents, Edmonton CMA (October 2025)

$1,603 × 1 unit × 12 months$19,236/yr gross

Operating Expenses

All defaults sourced from live data where possible. Adjust for your specific property.

$355/mo

2025 mill rate: 10.1391/1000

Industry avg ~$165/mo SFH

3.9%$63/mo
5%$80/mo
0% (self-managed)$0/mo

$0 if tenants pay. Common in 4-plex: $400–600 total

3.0%For 5-year projection
Total Monthly Operating Expenses$600

Monthly Cash Flow

-$919

-$11,030/year after all expenses & mortgage

Investment Metrics

Cap Rate

NOI / Purchase Price

2.69%
Cash-on-Cash Return

Annual CF / Cash Invested

-12.62%
DSCR

NOI / Debt Service

0.51x
Gross Rent Multiplier21.8x
Break-Even Occupancy153%
Annual NOI$11,286

Deal Summary

Purchase Price$420,000
Down Payment$84,000 (20.0%)
Mortgage Amount$336,000
Closing Costs*
$

*Alberta has no land transfer tax. Estimate includes legal, title transfer, inspection, appraisal.

Total Cash Needed$87,420
Monthly Mortgage$1,859.67
Stress Test Rate6.50%
Qualifying Payment$2,250.61

Monthly Breakdown

Gross Rent+$1,603
Vacancy (3.9%)$63
Property Tax$355
Insurance$165
Maintenance (5%)$80
= NOI$940
Mortgage$1,859.67
= Cash Flow-$919

5-Year Projection

Assuming 3.0% annual appreciation and constant rents. Adjust the slider above to model scenarios.

YearProperty ValueLoan BalanceEquityCash FlowPrincipal PaidAppreciationTotal Return
1$432,600$328,512$104,088-$11,030$7,488$12,600$9,057
2$445,578$320,684$124,894-$11,030$7,828$12,978$9,776
3$458,945$312,499$146,446-$11,030$8,185$13,367$10,521
4$472,714$303,942$168,771-$11,030$8,557$13,768$11,295
5$486,895$294,996$191,899-$11,030$8,946$14,181$12,097
Total-$55,150$41,004$66,894$52,747

5-year total return on $87,420 invested: $52,747 (60.3% total · 9.9% annualized)

Why Investors Choose Edmonton

Edmonton Cap Rates

5–8%

typical residential range

Toronto Cap Rates

2–4%

much higher entry price

Vancouver Cap Rates

2–3%

appreciation-driven market

Lower entry, higher yield. Edmonton's average detached home is $590,162 — roughly one-third of Greater Toronto and one-quarter of Greater Vancouver. Combined with strong rents, this creates significantly better cash flow from day one.

No land transfer tax. Alberta has no provincial land transfer tax, saving investors thousands on each purchase compared to Ontario or BC.

The 4-plex advantage. Owner-occupied properties with up to 4 units qualify for residential financing — as low as 5% down with CMHC insurance. This dramatically reduces the cash needed to enter the market while capturing rental income from multiple units.

Understanding the Metrics

Cap Rate — Net Operating Income ÷ Purchase Price. Measures the property's return independent of financing. Higher = better yield. Edmonton typically 5–8% for residential.

Cash-on-Cash Return — Annual cash flow ÷ total cash invested (down payment + closing costs). Measures return on your money. Leverage amplifies this vs. cap rate.

DSCR — Debt Service Coverage Ratio. NOI ÷ annual mortgage payments. Lenders typically want ≥ 1.2x. Below 1.0 means the property can't cover its debt from operations alone.

GRM — Gross Rent Multiplier. Purchase price ÷ annual gross rent. Lower = quicker payback. A rough screening tool — doesn't account for expenses.

Important Notes

This is an estimate. Actual returns depend on the specific property, tenant quality, management efficiency, and market conditions. Always verify numbers with your lender and accountant before purchasing.

Tax implications not included. Rental income is taxable, but expenses and mortgage interest are deductible. Depreciation (CCA) can shelter income further. Consult a tax professional for your specific situation.

Owner-occupied financing: Properties with up to 4 units qualify for residential rates if you live in one unit. Above 4 units requires commercial financing with different terms.

Data Sources

  • Average sale prices: CREA/REALTORS® Association of Edmonton MLS® data (February 2026)
  • Average rents & vacancy: Source: Canada Mortgage and Housing Corporation (CMHC), Rental Market Survey, October 2025. Reproduced and distributed on an as-is basis with the permission of CMHC.
  • Interest rates: Bank of Canada Valet API (as of May 14, 2025)
  • Property tax: City of Edmonton Open Data Portal — Residential tax rates (dataset pwis-wc4c), 2025 rates
  • Mortgage calculations: Canadian semi-annual compounding per Bank Act. CMHC insurance premiums per published schedule.

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