# Rental Yield

- Topic: Market & data
- Last updated: 6 Nov 2026
- Fact-checked against official government sources: 6 Nov 2026
- Canonical URL: https://propertymeter.sg/glossary/rental-yield/

## What is rental yield?

Rental yield is a property's yearly rent as a percentage of its price. Gross yield uses the rent alone; net yield first deducts costs such as property tax at non-owner-occupier rates, maintenance fees and repairs. In Singapore, rent is taxable income, and IRAS lets owners deduct 15% of gross rent as deemed expenses, plus mortgage interest.

## Key facts

- **Gross yield:** Annual rent ÷ price × 100
- **Net yield:** (Annual rent − yearly costs) ÷ price × 100
- **Property tax on a rented home:** Non-owner-occupier rates, 12% to 36% of annual value
- **Income tax:** Rental income must be declared in your income tax return
- **Deemed expenses:** 15% of gross rent, plus mortgage interest, can be claimed
- **Private rents, 3Q 2026:** URA rental index up 1.3% on the previous quarter

## How rental yield works

Yield turns a rent into a return you can compare with other investments or with your loan rate.

- **Gross yield** = annual rent ÷ price. Quick to work out, but it flatters the return.
- **Net yield** = (annual rent − yearly costs) ÷ price. Closer to what you keep.

## Costs to deduct for net yield

| Cost | Notes |
| --- | --- |
| [Property tax](https://propertymeter.sg/glossary/property-tax/) | Rented-out homes pay non-owner-occupier rates |
| Maintenance fees | For condos, paid to the MCST |
| Repairs | Restoring the property is a deductible expense for income tax; improvements are not |
| Agent's commission | Deductible for income tax, subject to conditions |
| Vacant months | No rent, but property tax still applies |

## Example

A $1,200,000 condo rents for $4,000 a month. IRAS sets its [annual value](https://propertymeter.sg/glossary/annual-value/) at $48,000. Yearly costs are for illustration.

| Item | Amount |
| --- | --- |
| Annual rent | $48,000 |
| Gross yield | 4.00% |
| Property tax at non-owner-occupier rates | $7,440 |
| Maintenance fees | $4,800 |
| Repairs and other costs | $2,000 |
| Net rent before financing and income tax | $33,760 |
| Net yield | 2.81% |

For income tax, IRAS's simplified method would treat the rent as $48,000 minus 15% deemed expenses ($7,200), minus mortgage interest.

## Common mistakes

- **Comparing gross yield with your loan rate.** Use net yield.
- **Forgetting the property tax jump.** A home you rent out loses owner-occupier rates.
- **Assuming full occupancy.** A month or two between tenants cuts the yield.

## Frequently asked questions

### Which costs should I include in net yield?

At least property tax (at non-owner-occupier rates), maintenance fees, repairs and agent fees. Mortgage interest is a real cost too, but yields are often quoted before financing so different properties can be compared.

### How is rental income taxed?

It is added to your other income and taxed at your income tax rates. IRAS pre-fills deemed expenses of 15% of gross rent, and you can claim mortgage interest on top. You may claim actual expenses instead, but must do so for all your rented homes.

### Where can I find official rent data?

URA publishes private residential rental contracts and median rents by project. HDB publishes rental data for HDB flats.

## Sources

1. [Income from property rented out](https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/what-is-taxable-what-is-not/income-from-property-rented-out) (IRAS)
2. [Property tax rates and sample calculations](https://www.iras.gov.sg/taxes/property-tax/property-owners/property-tax-rates) (IRAS)
3. [Release of 3rd Quarter 2026 real estate statistics (23 October 2026)](https://www.ura.gov.sg/news/media/pr26-73/) (URA)
4. [Private residential rental contracts](https://eservice.ura.gov.sg/property-market-information/pmiResidentialRentalSearch) (URA)

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Source: PropertyMeter (https://propertymeter.sg/glossary/rental-yield/). General information only, not financial, legal or tax advice.