Rental yield measures the annual rental income from a property as a percentage of what the property is worth, and is used to compare the income a property produces against its price.
Key takeaways
- Gross rental yield is annual rent divided by the property price or value, expressed as a percentage.
- Net rental yield deducts the annual costs of holding the property before dividing by the price, so it sits below the gross figure.
- MoneySense lists property taxes, fire and mortgage insurance, and conservancy and management service fees among the ongoing costs of owning a property.
- Where a lender counts rental income towards a property loan, MAS requires a minimum haircut of 30% to be applied to it.
- The rental income has to be verified against a stamped tenancy agreement with at least six months of the rental period remaining.
See how this applies to your own figures.
Singapore Rental Yield Calculator →Gross and net rental yield
Gross rental yield takes the rent collected over a year and divides it by the property price or current value. Net rental yield subtracts the annual costs of holding the property from that rent first, which gives a figure closer to what the owner actually keeps. Because the two are calculated differently, a gross yield and a net yield for the same property are not comparable with one another.
Costs that reduce a net yield
- Property tax, charged at the non-owner-occupier rates on a tenanted residential property
- Fire and mortgage insurance premiums
- Conservancy and management service fees
- Repairs, maintenance, agent commission and periods when the property sits vacant
How lenders treat rental income
Rental income is not taken at face value in a loan assessment. MAS requires financial institutions to apply a minimum haircut of 30% to rental income, in the same way as to variable income such as commission and bonuses, when calculating the gross monthly income used in the Total Debt Servicing Ratio. The rental income has to be verified against a tenancy agreement signed by the borrower as landlord and stamped, with a remaining rental period of at least six months.
What a yield figure does not capture
Rental yield describes income only. It says nothing about any change in the value of the property, about financing costs where the property is mortgaged, or about the tax treatment of the rental income. A yield calculated on the original purchase price will also drift away from one calculated on the current market value.
Key rental yield figures
| Item | Figure |
|---|---|
| Gross rental yield | annual rent ÷ property price × 100% |
| Net rental yield | (annual rent − annual costs) ÷ property price × 100% |
| Costs deducted for a net yield | property tax, insurance, maintenance and service fees |
| Minimum haircut applied to rental income in TDSR | 30% |
| Remaining tenancy period required for TDSR rental income | at least 6 months |
Figures as at 2026. Source: MoneySense.
Worked example
A property bought for SGD 1,000,000 and let at SGD 3,500 a month produces SGD 42,000 of annual rent, a gross rental yield of 4.2%. Deducting SGD 8,000 a year of property tax, insurance and maintenance leaves SGD 34,000, a net rental yield of 3.4%. The price, rent and cost figures here are illustrative assumptions, not market averages.
Related terms
All Singapore glossary terms →Related calculator
Calculate the gross and net rental yield on a Singapore property from its price, rent and holding costs.
This page is provided for educational and informational purposes only. It does not constitute financial advice. All figures and worked examples are estimates for illustrative purposes, are subject to change, and do not reflect any individual’s circumstances. Always refer to MoneySense and MAS and seek independent professional advice before making any financial decisions.