Cap rates by city / Edmonton
Edmonton cap rates in 2026
Apartment buildings in Edmonton traded at cap rates of 4.5% to 5.75% in CBRE's second-quarter 2026 survey, 10th lowest of the 13 Canadian cities CBRE surveys. Here is what sits behind that number, what CMHC says about vacancy and rents, and what a building is worth at the local yield.
Apartment cap rate
4.5% to 5.75%
CBRE, Q2 2026, Class A to B
Vacancy rate
3.8%
CMHC, October 2025
Average two-bedroom rent
$1,603
CMHC purpose-built, October 2025
Rent growth, 2025
3.5%
CMHC, two-bedroom, year over year
Run a Edmonton building through the calculator
Preloaded with a six-unit building at Edmonton's CMHC average two-bedroom rent, the city's vacancy rate, and generic expense assumptions ($1,800 tax and $600 insurance per unit, 8% maintenance, 5% management, $900 utilities per unit). The price is set so the building lands at the middle of the local range. Replace every number with your own.
Property & income
What you would actually pay, not the assessment
All units combined
Operating expenses (annual)
Of gross rent; 5–10% is typical
0 if self-managed
Condo fees, snow, lawn care
Your market
What similar properties trade at in this market
Cap rate
5.13%
$76,226 NOI on $1,487,000
Cap rate deliberately ignores financing: it is NOI divided by price, so you can compare properties regardless of how each buyer pays. The implied value inverts it: the price at which this NOI would hit your target cap rate. Useful as a negotiating anchor.
What the same building is worth across the range
The six-unit example above produces $76,226 of net operating income a year. Value is NOI divided by cap rate, so a half-point move in the market's cap rate changes the price by more than most renovations would:
| Cap rate | Building value |
|---|---|
| 4.5%low end | $1,693,914 |
| 5.13%middle | $1,487,339 |
| 5.75%high end | $1,325,672 |
Per unit: $282,319 at the low end to $220,945 at the high end.
Why Edmonton trades where it does
Edmonton's range of 4.5% to 5.75% runs a quarter point past Calgary's at the top, and it gets there differently: lower rents, lower prices and a longer history of flat values. Government and health-care employment give it a steadier tenant base than Calgary's energy-linked economy, and the gap between Edmonton and Calgary rents ($1,603 versus $1,914 for a two-bedroom) is the widest it has been in a decade, which some buyers read as catch-up room.
Vacancy, rents and the 2026 outlook
Vacancy was 3.8% in October 2025 with two-bedroom rents up 3.5%, a healthier balance than Calgary's 5% vacancy and flat rents. Edmonton completed less new supply relative to its stock. With no rent control, income growth tracks the market; for 2026 that likely means low single digits with turnover doing the work.
Rent rules in Alberta
Alberta has no rent control. A landlord can raise rent once every 12 months by any amount with three months' written notice on a periodic tenancy. That rule sets how fast in-place income can grow, which is why two buildings with identical rent rolls can trade at different cap rates depending on how far below market their tenants sit.
Cap rate against your mortgage rate
At a 5.13% cap rate, a mortgage costing more than 5.13% makes leverage work against you: every borrowed dollar earns less than it costs until rents grow. In Edmonton that is roughly a wash at 2026 mortgage rates, so cash flow depends on the down payment and how far below market the rents sit. Put the same building through our rental property calculator to see the cash flow with the Canadian semi-annual mortgage formula.
Frequently asked questions
What is a typical cap rate in Edmonton?+
4.5% to 5.75% for apartment buildings in CBRE's Q2 2026 survey. Small multi-units and older walk-ups often trade at 6% or higher, and Edmonton is one of the few large cities where a single-family rental can approach a 5% cap rate.
Edmonton or Calgary for a rental property?+
Edmonton offers higher yield and less supply risk in 2026: 3.8% vacancy and rents still growing versus Calgary's 5% vacancy and flat rents. Calgary has the stronger long-run population and price growth record. Cash-flow investors lean Edmonton; appreciation investors lean Calgary.
How Edmonton compares
| City | Cap rate | Vacancy |
|---|---|---|
| Vancouver | 3.5% to 4.75% | 3.7% |
| Toronto | 3.85% to 5.15% | 3% |
| Montreal | 4.25% to 4.75% | 2.9% |
| Victoria | 4.25% to 5% | 3.3% |
| Winnipeg | 4.5% to 5.25% | 2.8% |
| London | 4% to 6% | 4% |
| Calgary | 4.5% to 5.5% | 5% |
| Halifax | 4.5% to 5.5% | 2.7% |
| Quebec City | 4.25% to 6% | 2.4% |
| Edmonton | 4.5% to 5.75% | 3.8% |
| Ottawa | 4.5% to 5.8% | 3% |
| Kitchener-Waterloo | 4.5% to 6% | 4.1% |
| Saskatoon | 5.25% to 6.75% | 3.3% |
Sources: CBRE Canadian Cap Rates & Investment Insights, Q2 2026 (cap rate summary, high-rise and low-rise Class A to B); CMHC Rental Market Report, October 2025 survey. Survey ranges describe stabilized, professionally managed buildings; individual sales print outside them. Measure your own deal with the cap rate calculator.