🏠 Property · Investment & Advanced · Sub-Silo 4 · Tool #4

Net Rental Yield Calculator Singapore 2026
Gross vs Net Yield After Maintenance, Property Tax (NOO), Agent Fees, Vacancy & Repairs

Calculate the true return on your Singapore rental property — the net yield that accounts for all landlord expenses, not just the headline gross rent. Singapore landlords often quote gross yield (annual rent ÷ price) but the real return after vacancy loss, maintenance fees, non-owner-occupied (NOO) property tax, agent commission, insurance, and repairs is typically 1–2% lower. This calculator computes the full net yield using 2026 IRAS NOO property tax rates, plus the cash-on-cash return on your actual capital invested (down payment + transaction costs) if you are using mortgage leverage.

✓ Gross vs Net Yield ✓ NOO Property Tax (2026) ✓ Vacancy & Agent Costs ✓ Cash-on-Cash Return ✓ SG Benchmark Comparison
SG Avg Net2%–3% p.a.
Gross Avg3.5%–4.5%
NOO Tax10%–20% on AV
VacancyTypically 5%–10%
Agent1 Month’s Rent
📊 Rental Yield Inputs
S$
S$
S$
S$
month’s rent

1 month for a 1-year lease; 0.5 month for 2-year lease (shared)

%
% of property price

Annual allowance for repairs, maintenance capex, and refurbishment. Typical: 0.5%–1% for condo; 1%–2% for older properties. This tool auto-computes IRAS NOO property tax from your rent.

S$
% p.a.
S$

Your total out-of-pocket (down payment + ABSD + BSD + legal + renovation). Cash-on-cash return = annual cash flow ÷ this amount.

📊 Yield Result
📊

Enter your property price, monthly rent, and expenses to see gross yield, net yield, IRAS NOO property tax, and cash-on-cash return.

Annual Rent Allocation

Net Rental Yield Singapore 2026 — Why Gross Yield Is Misleading & All Landlord Costs Included

Gross yield (annual rent ÷ price × 100) is the number most agents use to sell investment properties — but it tells only half the story. A 5% gross yield condo may actually deliver only 2.5%–3% net after all landlord expenses. The biggest hidden costs in Singapore: (1) non-owner-occupied property tax (10%–20% of Annual Value); (2) maintenance and sinking fund fees (S$300–S$700/month for most condos); (3) vacancy (typically 5–10%, equal to 0.6–1.2 months of lost rent per year); (4) agent commission (1 month’s rent per annual tenancy). This calculator deducts all of these using 2026 IRAS NOO tax rates to show your real net return.

IRAS Non-Owner-Occupied Residential Property Tax 2026

Annual Value (AV) BandTax RateExample
First S$8,00010%S$800
Next S$22,000 (S$8K–S$30K)12%S$2,640
Next S$22,000 (S$30K–S$52K) 14%S$3,080
Next S$40,000 (S$52K–S$92K)16%S$6,400
Above S$92,00020%Progressive

Annual Value (AV) = estimated annual rent a property could fetch on the open market (assessed by IRAS, roughly equal to 12× monthly market rent). The NOO property tax bill on a S$4,500/mo condo (AV S$54,000) is approximately S$7,080/year — reducing net yield by about 0.59% on a S$1.2M property.

Typical Net Yield After All Expenses (Singapore 2026)

Property TypeGross YieldEst. Net YieldKey Cost Driver
Mass-market condo3.5%–4.5%2.0%–3.0%Maintenance + tax
Luxury condo (CCR)2.5%–3.5%1.5%–2.5%Very high tax on AV
HDB resale (rented)4.0%–5.0%3.0%–4.0%Lower maintenance
Shoebox (<500 sqft)4.5%–5.5%3.0%–4.0%High rent density

How This Rental Yield Calculator Works — Gross, Net & Cash-on-Cash

Step 1 — Enter Price and Monthly Rent

Enter your property price and the monthly rental income. The gross yield is calculated immediately. The Annual Value (AV) for property tax is estimated as 12× monthly rent — the same approach IRAS uses as a starting point (though the official AV may differ slightly).

Step 2 — Enter All Landlord Expenses

Enter monthly maintenance/S&CC, insurance, agent commission months, expected vacancy rate, and repair budget. The NOO property tax is computed automatically from the AV using 2026 IRAS progressive rates — no separate entry needed.

Step 3 — Add Leverage for Cash-on-Cash

Optionally enter your mortgage details and total cash invested. The cash-on-cash return shows the annual cash flow (net income minus mortgage interest) as a percentage of your actual capital deployed — the most relevant metric for leveraged property investors.

3 Real Singapore Yield Examples — Mass Market Condo, CCR Luxury & HDB

S$1.2M Condo, S$4,500/mo Rent

Gross yield4.50%
NOO property tax-S$7,080/yr
Maintenance (S$500/mo)-S$6,000/yr
Vacancy (5%) + agent-S$7,200/yr
Net incomeS$27,720/yr
Net yield2.31%

S$3.5M CCR, S$9,000/mo Rent

Gross yield3.09%
NOO tax (AV S$108K)-S$18,700/yr
Maintenance (S$1,000/mo)-S$12,000/yr
Vacancy + agent + repairs-S$15,300/yr
Net incomeS$62,000/yr
Net yield1.77%

S$500K HDB, S$2,800/mo Rent

Gross yield6.72%
NOO tax (AV S$33,600)-S$3,992/yr
Maintenance (S$100/mo)-S$1,200/yr
Vacancy + agent + repairs-S$6,700/yr
Net incomeS$21,708/yr
Net yield4.34%

3 Expert Yield Tips — Tax-Efficient Renting, Vacancy vs Premium Rent & REITs vs Direct

1

Owner-Occupied vs NOO Tax Saves Up to S$10,000+ Annually

If you occupy part of your property (e.g., rent out rooms while living in the same condo), you pay owner-occupied property tax instead of NOO rates. The difference is dramatic: a property with AV S$60,000 pays OO tax of approximately S$1,380 vs NOO tax of S$8,120 — a S$6,740 annual saving. This tax saving effectively increases your net yield by 0.56% on a S$1.2M property. If you have a spare room or are considering a live-in landlord strategy (rent rooms, occupy main bedroom), the OO tax benefit can substantially improve your actual return vs this calculator’s output (which assumes full NOO status).

2

Vacancy Rate Is the Most Volatile Cost — Minimise with Tenancy Renewal

A 5% vacancy rate seems small but equals 18 days of lost rent per year. If your flat sits empty for 2 months between tenants (16.7% vacancy), you lose S$9,000 on a S$4,500/month rental — obliterating your net yield. Strategies to minimise vacancy: (1) offer modest rent reductions (S$200–S$300/mo) to retain good tenants for a second term — retention is cheaper than vacancy; (2) start marketing 2 months before tenancy expiry; (3) use a proactive agent on monthly retainer rather than commission-per-let. The math: lowering rent by S$200/mo to retain a tenant saves S$9,000 vacancy loss = net saving S$6,600 per year.

3

Compare Your Net Yield Against S-REITs Before Leveraging Further

Singapore REITs (S-REITs) typically distribute 5%–7% annually, are highly liquid, require no management, have no NOO tax, and pay no stamp duty. If your net rental yield after all costs is 2.5% and REITs yield 6%, the direct property investment only makes sense if: (1) you benefit significantly from capital appreciation; (2) leverage amplifies your cash-on-cash return above the REIT yield; (3) you have specific tax or estate planning reasons. Use cash-on-cash return (leveraged) — not net yield — as your comparison metric against REITs. A S$400K cash invested at 2.5% net yield earns S$10,000/yr vs the same S$400K in REITs at 6% = S$24,000/yr (3× more, with full liquidity).

16 FAQs — Net Rental Yield Singapore 2026, NOO Property Tax, Vacancy Rate & Landlord Costs

What is the difference between gross and net rental yield?+
Gross yield = annual rent ÷ property price × 100. It ignores all expenses. Net yield = (annual rent − all expenses) ÷ property price × 100. In Singapore, the gap between gross and net yield is typically 1.5%–2.5%, mainly due to NOO property tax (significant), maintenance fees, vacancy, and agent commissions. A 4.5% gross yield condo may have only 2.5% net yield — always calculate net yield before making investment decisions.
How is the Annual Value (AV) determined for property tax?+
The Annual Value (AV) is IRAS’s estimate of the property’s potential annual rent at market rates. IRAS determines AV by looking at actual rental transactions for similar properties in the area. For a property you are renting out, the AV is typically close to your actual annual rent. This calculator uses 12× monthly rent as the AV estimate. IRAS reviews AV regularly — if your rent increases, IRAS may raise the AV, increasing your property tax bill. Check your actual AV at my.iras.gov.sg. The actual AV may differ slightly from this estimate.
What are the NOO property tax rates for 2026?+
Non-owner-occupied residential property tax rates for 2026: first S$8,000 AV at 10% (S$800); next S$22,000 (S$8K–S$30K) at 12%; next S$22,000 (S$30K–S$52K) at 14%; next S$40,000 (S$52K–S$92K) at 16%; above S$92,000 at 20%. The rates are progressive — only the portion of AV above each threshold is taxed at the higher rate. The tax bill on a condo with AV S$54,000 is approximately S$7,080/year.
What is cash-on-cash return and why does it matter?+
Cash-on-cash return = annual cash flow ÷ total cash invested. It measures the return on your actual capital deployed, which is relevant when using leverage. Example: S$1.2M condo, 25% cash (S$300K) + S$900K mortgage at 3.5%. Net rent S$27,720; mortgage interest S$31,500; cash flow = -S$3,780 (negative). Cash-on-cash = -1.26%. This reveals leverage is destroying returns at this rent level. To make the investment cash-flow positive, you would need higher rent, lower mortgage, or lower price. Net yield alone (before mortgage) can be misleading — cash-on-cash shows the actual return on your money.
What is a good net rental yield in Singapore?+
Singapore’s property market is known for low yields and high capital appreciation. Benchmark net yields: (1) mass-market condo (OCR): 2.5%–3.5% net — decent; (2) CCR luxury condo: 1.5%–2.5% net — low, capital appreciation dependent; (3) HDB (if rented after MOP): 3.5%–4.5% net — strong; (4) shoebox units: 3.0%–4.0% net. Compared to S-REITs (5%–7%), direct property net yields are lower — the investment thesis for direct property in Singapore relies heavily on long-term capital appreciation rather than income yield.
Is rental income taxable in Singapore?+
Yes. Rental income is taxable in Singapore if you are a tax resident with total chargeable income above the S$20,000 taxable threshold. Rental income = rent received minus allowable deductions (mortgage interest on rental property, property tax, maintenance fees, agent fees, repairs, insurance). The net rental income is added to your other income (salary, etc.) and taxed at progressive rates (0%–24%). Key deduction: mortgage interest is deductible against rental income (unlike personal mortgage for own occupation). Keep all receipts for deductible expenses.
Is mortgage interest deductible against rental income?+
Yes — this is a significant tax advantage for Singapore landlords. The mortgage interest (not principal) paid on the rental property loan is deductible against rental income. Example: rent S$54,000/year, mortgage interest S$31,500. Taxable rental income = S$54,000 − S$31,500 (interest) − S$7,080 (property tax) − S$6,000 (maintenance) − S$4,500 (agent + misc) = S$4,920. At marginal rate 11.5%, tax = S$566. The deductibility of mortgage interest significantly reduces the effective tax burden on rental income. Keep your mortgage interest statements from the bank.
What maintenance fees should I expect for a Singapore condo?+
Monthly maintenance fees (MCST fees) vary widely: small condos (fewer facilities): S$150–S$300/month; mid-tier condos (pool, gym): S$300–S$600/month; luxury condos (full facilities, concierge): S$600–S$1,500/month; GCB / bungalow: minimal MCST but higher direct maintenance costs. For HDB flats, monthly Service and Conservancy Charges (SCC) are S$50–S$95 depending on flat type. These fees reduce net yield significantly — a S$500/month maintenance fee on a S$1.2M condo reduces net yield by 0.5%. Always check the actual MCST fees before purchasing an investment property.
What vacancy rate should I use?+
Conservative assumptions: 5% vacancy (18 days/year) for well-located, well-maintained properties with proactive management. 8%–10% for average market conditions (1 month vacancy between tenants). 15%+ for oversupplied markets or poorly located properties. Singapore’s private residential vacancy rate was approximately 6%–8% in 2025. Shoebox units and less popular locations can have higher vacancy. Always stress-test your yield calculation with a 10% vacancy rate to see the downside scenario.
How much does a tenancy agent cost?+
Agent commission structure for residential rentals in Singapore: (1) 1-year lease: 1 month’s rent (typically split 50/50 between landlord and tenant agents, so landlord pays 0.5–1 month); (2) 2-year lease: 1 month’s rent total (landlord pays 0.5 month); some landlords negotiate 0% if tenant’s agent handles everything. However, a professional agent who secures a good tenant quickly and vets them thoroughly can prevent a much more expensive bad tenancy. Factor in 1 month’s rent per annual tenancy as a conservative estimate.
Should I invest in property or REITs for rental yield?+
The comparison: Direct property: net yield 2%–3.5% (after all costs), but capital appreciation potential, leverage ability, tangible asset, CPF usability. S-REITs: distribution yield 5%–7%, high liquidity, no management effort, no property tax, diversified across many properties, can invest S$1,000–S$10,000 at a time. For pure income maximisation, REITs typically win on yield. Direct property makes sense when: (1) you believe strongly in SG property capital appreciation; (2) leverage amplifies your cash-on-cash above REIT yield; (3) you have specific estate planning needs; (4) you have access to below-market deals. Use this calculator’s cash-on-cash return for an apples-to-apples comparison with REIT yields on your invested capital.
How is the repair / capex budget calculated?+
The repair/capex budget is an annual provision for ongoing maintenance, repairs, and periodic refurbishment. Common approach: 0.5%–1% of property value per year for a well-maintained condo. Examples: on a S$1.2M property, 1% = S$12,000/year for repairs and refurbishment. Over 10 years, this funds a full renovation (kitchen, bathrooms, painting = S$30,000–S$50,000) plus ongoing repairs (aircon servicing, appliance replacement, plumbing, electrical). Under-provisioning for repairs leads to a deteriorating property that commands lower rent over time.
What is the HDB subletting scheme for rental?+
After MOP (5 years), HDB flat owners can rent out the entire flat with HDB approval. Key rules: (1) minimum rental period 6 months; (2) maximum 6 occupants for 3-room, 9 for 4-room+; (3) non-citizen quota applies (50% of each block limited to non-citizens); (4) you must have alternative accommodation while renting; (5) HDB approval required before renting. The rental must be reported via HDB’s My HDBPage. HDB conducts spot checks. Unauthorised subletting can result in flat compulsory acquisition. HDB flats generally command higher gross and net yields than private condos due to lower purchase prices and lower maintenance fees.
How does ABSD affect rental yield?+
ABSD (20% for SC second property, 30% third+) is a major upfront cost that effectively reduces your yield because it increases your total cost basis. Example: S$1.2M condo + 20% ABSD (S$240,000) = effective cost basis S$1.44M. If gross yield is 4.5% on S$1.2M (S$54,000/yr), on S$1.44M cost basis the yield drops to 3.75%. The ABSD effectively reduces your yield by 0.75%. For SC investors buying a second property, the combination of lower net yield (2.5%) and ABSD cost makes the investment case challenging unless strong capital appreciation is expected. Decoupling (if applicable) can avoid the 20% ABSD, significantly improving the effective yield.
What insurance does a Singapore landlord need?+
Singapore landlords should carry: (1) Fire/home insurance — covers structure and fixtures against fire, flood, and other perils (S$200–S$500/year for a condo); (2) Landlord insurance — covers loss of rent (if flat is uninhabitable due to insured event) and malicious damage by tenants (S$300–S$600/year); (3) Public liability — protects against claims if someone is injured in your property. The HDB Fire Insurance Scheme (FIS) is compulsory for HDB owners and covers the building structure (S$7.50–S$12.50/5yr). For investment condos, a landlord insurance package (all three above bundled) typically costs S$400–S$800/year.
How does rental yield compare across Singapore districts (OCR, RCR, CCR)?+
Singapore’s three market zones have distinct yield profiles: OCR (Outside Central Region) — Jurong, Woodlands, Tampines, Sengkang. Highest gross yields (4.0%–5.0%) due to lower prices and strong rental demand from HDB upgraders. Net yields typically 2.5%–3.5%. RCR (Rest of Central Region) — Bishan, Toa Payoh, Queenstown. Mid-range gross yields (3.5%–4.5%), balanced between price and rent. Net yields 2.0%–3.0%. CCR (Core Central Region) — Orchard, Marina Bay, Sentosa. Lowest gross yields (2.5%–3.5%) due to very high prices. Net yields 1.5%–2.5%. CCR properties have the lowest income yield but historically the strongest capital appreciation. For rental income maximisation, OCR properties offer the best net yields. For total return (yield + capital growth), the optimal zone depends on market timing.
Legal Disclaimer & Editorial Transparency. NOO property tax rates per IRAS 2026: 10% (first S$8K AV), 12% (S$8K–S$30K), 14% (S$30K–S$52K), 16% (S$52K–S$92K), 20% (above S$92K). AV estimated as 12× monthly rent — actual AV determined by IRAS and may differ. Rental income taxable in Singapore; mortgage interest deductible against rental income. Agent commission, maintenance, repairs, and insurance are estimates. Vacancy rate is a planning assumption. Cash-on-cash uses interest-only mortgage cost (not full repayment). ABSD impacts cost basis and effective yield. All figures indicative. Verify with IRAS (iras.gov.sg) and a licensed property agent or financial advisor. Not tax or financial advice. Operated by MAFHH INTERNATIONAL LTD.