Answer
Private Property Rental Yield Calculator
Before you buy a condo “for rental income,” you need to know the real yield — not the gross number your agent quotes, but the net number after every expense is stripped out.
Answer: Gross rental yield = (Monthly Rent × 12 / Purchase Price) × 100. Typical ranges: CCR 2.5–3%, RCR 3–3.5%, OCR 3.5–4.5%. After deducting MCST, property tax, income tax, agent commission, and vacancy, net yield drops by 1–1.5%. A $1.5M condo renting at $4K/month = 3.2% gross, ~1.8% net.
The Formulas
| Metric | Formula |
|---|---|
| Gross Rental Yield | (Monthly Rent × 12 / Purchase Price) × 100 |
| Net Rental Yield | (Annual Rent − Annual Expenses) / Purchase Price × 100 |
Gross yield gets you in the door. Net yield is the truth.
Typical Yields by District
| Segment | Typical Price Range | Typical Rent | Gross Yield | Est. Net Yield |
|---|---|---|---|---|
| CCR (Core Central) | $2,000,000 – $4,000,000 | $4,000 – $7,000/mo | 2.5 – 3.0% | 1.0 – 1.8% |
| RCR (Rest of Central) | $1,200,000 – $2,000,000 | $3,200 – $4,500/mo | 3.0 – 3.5% | 1.5 – 2.2% |
| OCR (Outside Central) | $900,000 – $1,500,000 | $2,800 – $4,200/mo | 3.5 – 4.5% | 2.0 – 3.0% |
CCR = Orchard, Marina Bay, Bukit Timah. RCR = Queenstown, Toa Payoh, Geylang. OCR = Punggol, Tampines, Jurong, Woodlands.
Every Expense That Eats Your Yield
Most landlords forget half of these when they calculate yield. Don't be that person.
| Expense | Typical Range | Notes |
|---|---|---|
| MCST (maintenance + sinking fund) | $300 – $800/mo | Bigger unit / fancier condo = higher |
| Property tax (non-owner) | 12% – 36% of AV | Progressive rates on Annual Value |
| Income tax on rental | 0 – 24% of net rent | Marginal rate after deductions |
| Agent commission | 1 month's rent per lease | Half-month if 1-yr; 1 month if 2-yr |
| Vacancy | 2 – 4 weeks/year avg | Between tenants; budget 1 month/2 years |
| Repairs & upkeep | $500 – $2,000/year | Aircon servicing, minor fixes, painting |
| Insurance | $200 – $500/year | Fire + contents insurance |
Worked Example: $1.5M Condo at $4,000/Month
Let's walk through the math for a typical RCR condo. This is a realistic scenario — not cherry-picked to look good.
| Item | Annual | Monthly |
|---|---|---|
| Gross rental income | $48,000 | $4,000 |
| MCST fees | −$5,400 | −$450 |
| Property tax (non-owner-occupied) | −$5,160 | −$430 |
| Income tax on net rent (est. 15%) | −$5,616 | −$468 |
| Agent commission (1 mo / 2-yr lease) | −$2,000 | −$167 |
| Vacancy (2 weeks/year avg) | −$1,846 | −$154 |
| Repairs & upkeep | −$1,200 | −$100 |
| Insurance | −$350 | −$29 |
| Net rental income | $26,428 | $2,202 |
| Gross yield | 3.2% | |
| Net yield | 1.8% | |
Property tax based on AV of ~$48,000 at non-owner rates. Income tax at 15% marginal rate on net rental income after allowable deductions. Actual numbers vary.
Property Tax for Rented-Out Condos
When you rent out your condo, IRAS applies non-owner-occupied rates — which are significantly higher than owner-occupied rates.
| Annual Value (AV) | Non-Owner Rate |
|---|---|
| First $30,000 | 12% |
| Next $15,000 | 20% |
| Next $15,000 | 28% |
| Above $60,000 | 36% |
AV is the estimated annual market rent, set by IRAS. If your condo rents at $4,000/mo, AV is roughly $48,000. Tax = ($30,000 × 12%) + ($18,000 × 20%) = $3,600 + $3,600 = $5,160 (after rounding adjustments by IRAS).
Gross Yield Quick Reference
Monthly rent across the top. Purchase price down the side.
| Price | $3,000/mo | $3,500/mo | $4,000/mo | $4,500/mo | $5,000/mo |
|---|---|---|---|---|---|
| $1,000,000 | 3.6% | 4.2% | 4.8% | 5.4% | 6.0% |
| $1,200,000 | 3.0% | 3.5% | 4.0% | 4.5% | 5.0% |
| $1,500,000 | 2.4% | 2.8% | 3.2% | 3.6% | 4.0% |
| $2,000,000 | 1.8% | 2.1% | 2.4% | 2.7% | 3.0% |
| $3,000,000 | 1.2% | 1.4% | 1.6% | 1.8% | 2.0% |
Green = 3%+ gross yield. Net yield will be 1–1.5% lower after expenses.
Does the Rent Cover the Mortgage?
The question every investment buyer asks. At current rates, usually no — not after expenses.
| Price | Monthly Mortgage | Typical Rent | Net Rent (after costs) | Monthly Gap |
|---|---|---|---|---|
| $1,000,000 | $3,753 | $3,200 | $2,240 | −$1,513 |
| $1,500,000 | $5,630 | $4,000 | $2,800 | −$2,830 |
| $2,000,000 | $7,507 | $5,000 | $3,500 | −$4,007 |
Mortgage: 75% LTV, 3.5% interest, 25-year tenure. Net rent estimated at 70% of gross after all costs. The gap is your cash outflow each month.
Run your own rental yield numbers
Check your stamp duty, affordability, and monthly payment to see the full picture before buying for investment.
FAQ
What is the difference between gross and net rental yield?
Gross yield is simply (annual rent / purchase price) x 100. Net yield subtracts all expenses — MCST fees, property tax, income tax on rent, agent commission, vacancy, and repairs — before dividing by purchase price. Gross is useful for quick comparisons. Net is what you actually pocket.
What is a good rental yield for a Singapore condo?
A gross yield of 3.5–4.5% is decent for OCR (mass market). RCR condos typically yield 3–3.5%, and CCR (prime district) condos yield 2.5–3% because prices are high relative to rents. Net yield after all expenses is usually 1–1.5% lower than gross.
How much does MCST reduce my rental yield?
MCST (maintenance and sinking fund) typically costs $300–$800/month for a standard condo unit. On a $1.5M condo renting at $4,000/month, $450/month MCST reduces your gross yield from 3.2% to about 2.8% — a 0.4% drag.
Is rental income taxable in Singapore?
Yes. Net rental income is added to your employment income and taxed at your marginal rate (0–24% for residents). You can deduct property tax, mortgage interest, MCST fees, agent fees, repairs, and insurance. What’s left is taxable.
How is property tax calculated on a rented-out condo?
Rented-out properties use non-owner-occupied rates: 12% on the first $30,000 of Annual Value (AV), then progressive rates up to 36%. AV is roughly the estimated annual market rent. For a condo rented at $4,000/month, AV is around $48,000, giving ~$5,160 in property tax.
Should I buy a condo purely for rental yield?
In Singapore, rental yield alone rarely justifies the purchase — net yields of 1.5–2.5% barely beat fixed deposits. The real wealth builder is capital appreciation. Rental yield covers holding costs while you wait for the property to appreciate. Buy for total return, not yield alone.
Related
- Rental Yield Singapore Condo — quick yield overview by segment
- Condo Maintenance Fee Singapore — what MCST actually costs
- Property Holding Period & SSD — sell too early and SSD eats your profit
- Tenancy Agreement Singapore — what to include in your lease
- Stamp Duty on a $1.5M Condo — factor this into your purchase cost
Last updated Feb 2026. Yields based on market estimates and publicly available transaction data. Property tax rates per IRAS. Actual yields depend on specific property, tenant, and market conditions. This is not financial advice.