Investing in Vancouver rentals: the numbers
Vancouver has the lowest vacancy and the highest prices of any large Canadian market. Cap rates are thin and most investors here knowingly accept low or negative cash flow in exchange for appreciation. Whether that bet works depends on the real numbers. Here they are.
Vancouver at a glance
| Average 2-bedroom rent | $2,100/mo (CMHC Rental Market Report, October 2025) |
|---|---|
| Average 1-bedroom rent | $1,850/mo (CMHC Rental Market Report, October 2025) |
| Rent growth, year over year | 2.8% (CMHC Rental Market Report, October 2025) |
| Rental vacancy rate | 1.3% (CMHC Rental Market Survey, October 2024) |
| Typical multi-family cap-rate band | 3.0 to 5.0% (CBRE / Colliers Canada cap-rate surveys, 2024-2025) |
| City residential mill rate | 2.56 per $1,000 of assessed value, 2024 (municipal tax bylaws, 2024) |
| Rent control | 3.0% 2025 cap for existing tenants |
Figures from CMHC, CBRE and Colliers Canada surveys and municipal tax bylaws. Cited with each row above. Rents are existing-tenant averages; new leases on turnover usually run higher.
A Vancouver fourplex, run in full
Take a small four-unit building in Vancouver. Using the CMHC Rental Market Report, October 2025 average two-bedroom rent of $2,100 a month across the four units, gross rent comes to about $8,400 a month, or $100,800 a year. At a purchase price near $1,512,000, the math looks like this.
Property tax at Vancouver's residential mill rate of 2.56 per $1,000 runs about $3,871 a year. Add roughly $28,200 for insurance, maintenance, management, and a vacancy reserve, and total operating expenses land near $32,071. That leaves a net operating income around $68,729 a year. That works out to a cap rate near 4.5%, in line with the 3.0 to 5.0% band that CBRE and Colliers Canada cap-rate surveys (2024 to 2025) report for Vancouver multi-family.
Now add the mortgage. With 20% down on a 30-year amortisation at current rates, the debt service is the line that decides whether this deal cash-flows. If it qualifies for CMHC MLI Select, a 1.10 DSCR threshold and a 40-year amortisation path change the math in your favour. That is the kind of difference a US-built tool misses, because it does not carry the CMHC paths at all. The numbers only hold if the rents, the unit count, and the mill rate are real, not what the listing claims.
What is specific to Vancouver
- Vancouver's residential mill rate is the lowest of the cities here, but the highest prices in the country mean the dollar tax bill is still significant.
- BC charges a property transfer tax that climbs on higher-value homes. Factor it fully into closing costs on an expensive purchase.
- Vacancy is the tightest in the country, which supports rents, but thin cap rates mean cash flow is rarely positive without a large down payment.
Run a real Vancouver listing through BrickROI.
Paste the realtor.ca URL and the Canadian property data fills in the price, taxes, and rent comps. You get cap rate, DSCR, cash-on-cash, the CMHC and MLI Select paths, and a lender-ready PDF in two minutes.
Try a dealWant to run the numbers yourself first? Start the cash-on-cash calculator with this example's figures.
Vancouver investor questions
Is Vancouver a good place to invest in rentals?
It depends on the specific deal. Vancouver has an average two-bedroom rent of $2,100 a month and a rental vacancy rate of 1.3% per the CMHC Rental Market Survey, October 2024. Run the actual numbers on the building before you decide.
What is the average cap rate in Vancouver?
CBRE and Colliers Canada cap-rate surveys (2024 to 2025) put Vancouver multi-family in roughly a 3.0 to 5.0% band. Verify against the actual rents and the city mill rate, because a specific building can land outside that range.
What is the average rent in Vancouver?
Per the CMHC Rental Market Report, October 2025, the average two-bedroom rent in Vancouver is $2,100 a month and the average one-bedroom is $1,850. Rents grew about 2.8% year over year. New leases on turnover typically run higher than these existing-tenant averages.
Does rent control apply in Vancouver?
British Columbia caps annual rent increases for existing tenants. The 2025 limit is 3.0%. The cap applies once per 12 months with three months notice.