Cap rates by city / Ottawa
Ottawa cap rates in 2026
Apartment buildings in Ottawa traded at cap rates of 4.5% to 5.8% in CBRE's second-quarter 2026 survey, 11th 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 5.8%
CBRE, Q2 2026, Class A to B
Vacancy rate
3%
CMHC, October 2025
Average two-bedroom rent
$1,926
CMHC purpose-built, October 2025
Rent growth, 2025
3.4%
CMHC, two-bedroom, year over year
Run a Ottawa building through the calculator
Preloaded with a six-unit building at Ottawa'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
5.15%
$96,684 NOI on $1,877,000
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 $96,684 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 | $2,148,544 |
| 5.15%middle | $1,877,369 |
| 5.8%high end | $1,666,974 |
Per unit: $358,091 at the low end to $277,829 at the high end.
Why Ottawa trades where it does
Ottawa is the steadiest large market in the country. Federal employment sets a floor under demand, the tech sector in Kanata adds a second engine, and prices never ran up the way Toronto's did, so cap rates sit a half point or more above Toronto at 4.5% to 5.8%. The wide range reflects the difference between new downtown product and 1960s suburban walk-ups.
Vacancy, rents and the 2026 outlook
Vacancy was 3% in October 2025 with two-bedroom rents up 3.4% to $1,926. Federal public service hiring freezes and return-to-office rules are the demand variables to watch in 2026. Post-2018 buildings exempt from the guideline can push rents to market; older rent-controlled stock is limited to 2.1% on renewals.
Rent rules in Ontario
Ontario's 2026 guideline is 2.1% for sitting tenants, with 90 days' written notice. Units first occupied after November 15, 2018 are exempt from the guideline. 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 5.15% cap rate, a mortgage costing more than 5.15% makes leverage work against you: every borrowed dollar earns less than it costs until rents grow. In Ottawa 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 the average cap rate in Ottawa?+
4.5% to 5.8% for apartment buildings in CBRE's Q2 2026 survey. Ottawa condos rented by individual investors typically produce 3.5% to 4.5%, better than Toronto because prices are lower relative to rent.
Is Ottawa a good city for a rental property?+
For stability, yes. Government employment keeps vacancy low through recessions, rents grew 3.4% in 2025, and prices are well below Toronto's for similar rent. The trade-off is slower appreciation and the same 2.1% guideline on pre-2018 buildings.
How Ottawa 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.