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
As of 6 Nov 2026. Source: IRAS, URA.
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 | 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 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.
Related terms
Sources
Every figure on this page was checked against the official government sources above on 6 Nov 2026. See our editorial policy.
This is general information, not financial, legal or tax advice.