To calculate HDB rental yield, divide your annual rental income by the flat's resale price, then multiply by 100. Gross yield gives a quick snapshot; net yield subtracts property tax, conservancy charges, maintenance, vacancy, and agent fees. For a S$650,000 four-room flat renting at S$3,000 per month (as of 2026-06), gross yield sits near 5.5% — net yield closer to 4.0%.
HDB flats are Singapore's most accessible property investment, but many owners discover only after buying that the yield arithmetic is trickier than it looks. Resale prices have risen sharply since 2020, compressing the income-to-price ratio. Before you list your flat on the rental market, you need a clear-eyed figure: not just what rent you can charge, but what return actually lands in your pocket after every statutory cost is stripped out. This guide walks through the calculation from first principles, covers the HDB-specific eligibility rules that gate your ability to rent at all, and equips you with the numbers to decide whether renting out your flat makes financial sense for your situation.
Why HDB rental yields are structurally modest
Rental yield is a ratio. When the denominator (resale price) rises faster than the numerator (monthly rent), yield falls. Between 2020 and 2026 the HDB resale price index climbed roughly 40%, while median rents for a four-room flat in mature estates moved from around S$2,200 to S$3,000 per month — a gain of about 36%. The two curves moved in near-lockstep, keeping gross yields in the 4.5% – 6.0% range across most towns (as of 2026-06). That might sound reasonable until you apply costs: Singapore's non-owner-occupier property tax, which is charged at progressive rates on annual value, takes a meaningful slice; HDB conservancy and S&CC fees add another fixed charge; and a standard 12-month tenancy with a 1-month agent commission shaves roughly one month's rent off year one. Net yields on expensive mature-estate flats regularly compress to 3.5% – 4.5%, below what a risk-adjusted equity portfolio might return.
None of this means renting is wrong. It means the decision deserves a full cost model, not back-of-envelope arithmetic. Use the HDB Rental Yield Calculator to run your own numbers, and cross-reference market rents by town using the Rental Yield Map before you set your asking price.
Who can rent out an HDB flat, and when
HDB imposes eligibility gates that have no equivalent in the private market. You must satisfy the 5-year Minimum Occupation Period (MOP) before renting out the entire flat. You may rent out individual bedrooms before MOP expiry, subject to HDB approval and a cap on the number of occupants. Full-flat rental after MOP requires HDB's written approval and is subject to a quota system at the block and neighbourhood level. Overseas owners who intend to rent must also comply with any conditions attached to their purchase. For the definitive and up-to-date rules, consult the HDB Renting Out Your Flat page directly — the eligibility criteria can change at policy review cycles.
Failing to obtain HDB approval before renting out a flat is a breach of the tenancy conditions and can result in compulsory sale of the flat. No yield calculation is meaningful if you have not first confirmed you are eligible.
Calculate gross and net rental yield for HDB flats using real median rent data by town and flat type. Compare yields across towns, factor in HDB-specific costs, and find the most rentable HDB locations in Singapore.
What This Calculator Does
Calculate gross and net rental yield for HDB flats using real median rent data by town and flat type. Compare yields across towns, factor in HDB-specific costs, and find the most rentable HDB locations in Singapore.
You can find this calculator in the Calculators tab on ShiokNest. It updates results instantly as you adjust inputs โ no waiting, no page reloads.
Why This Matters
What You Will Discover
After running this calculator with your personal numbers, you will know:
Key Inputs Explained
Here are the inputs you will configure, along with their default values. Each default is calibrated to a realistic Singapore condo scenario so you can explore results immediately.
| Field | Description | Default Value |
|---|---|---|
| Purchase Price | The total property price before additional costs. | $1,500,000 |
| Monthly Rent | Expected monthly rental income or rent you would pay. | $3,800 |
Step-by-Step Guide
- ๐ Navigate to Calculators โ Click the "Calculators" tab in the ShiokNest navigation bar. All 47 calculators are grouped by purpose for easy access.
- ๐ Select the calculator โ Choose "How to Calculate HDB Rental Yield" from the calculator list. You will see default values already loaded so you can explore immediately.
- โ๏ธ Enter your values โ Replace the defaults with your own numbers. The key fields are:
- Purchase Price โ The total property price before additional costs.
- Monthly Rent โ Expected monthly rental income or rent you would pay.
- ๐ Review the results โ The calculator updates instantly as you change any input. Key results are displayed in KPI cards and charts that update as you adjust inputs.
- ๐ Run what-if scenarios โ This is where the real power lies. Change one variable at a time to see its impact. For example, try increasing the interest rate by 1% or extending your holding period by 5 years. Note how the results shift.
- ๐พ Compare and decide โ Run 2-3 different scenarios and note the results. This gives you a range of outcomes to base your decision on, rather than relying on a single projection.
Worked Example
Real-World Scenarios to Try
Here are some realistic scenarios you can plug into the calculator right now. Each one reflects a common situation Singapore property buyers face.
| Scenario | Settings to Try | What You Will Learn |
|---|---|---|
| Mature estate 4-room | Queenstown, 4-room, $600K purchase | Yield in a high-demand mature estate location |
| Non-mature 5-room | Punggol, 5-room, $550K purchase | Whether larger units in newer towns deliver competitive yields |
| Post-MOP investment | Tampines, 3-room, $380K purchase | Net yield after property tax, maintenance, and vacancy |
Expert Tips and Common Pitfalls
๐ก Pro Tips
- Use realistic assumptions โ Singapore condo appreciation has historically averaged 2-4% per year. Avoid overly optimistic projections. When in doubt, use 3% as a baseline.
โ ๏ธ Common Pitfalls
๐ค What-If Scenarios to Explore
Get the most value from this calculator by testing these scenarios:
- Run at least 3 scenarios โ best case, base case, and worst case โ to understand the full range of outcomes.
Related Calculators
Your property journey involves many interconnected decisions. These calculators work hand-in-hand with this one:
- How to Calculate Buy-to-Rent ROI
- How to Calculate IRAS property taxProperty Tax
- How to Compare HDB Loan vs Bank Loan
Ready to Crunch Your Numbers?
Select a town and flat type to see current HDB rental yield using real median rent data. Essential for post-MOP rental planning.
Official Sources
This how-to guide is auto-generated using ShiokNest's calculator defaults. All worked examples use default values โ adjust inputs to match your personal scenario for accurate results.
The numbers behind a typical four-room flat (as of 2026-06)
To make the yield model concrete, consider a four-room flat in Tampines purchased on the resale market for S$650,000. Median rent for a comparable four-room unit in Tampines is approximately S$3,000 per month (as of 2026-06), based on HDB resale and rental transaction data accessible via data.gov.sg HDB rental datasets. The calculations below use these figures as a worked example; adjust for your actual purchase price and achievable rent.
Gross rental yield
Gross yield = (Annual Rent ÷ Resale Price) × 100
= (S$3,000 × 12) ÷ S$650,000 × 100
= S$36,000 ÷ S$650,000 × 100
= 5.54%
Gross yield is useful for quick market comparisons — browse the HDB Prices Map to see how median prices differ across towns and estimate whether a higher-yield town suits your holding strategy. However gross yield is misleading as a cash-flow metric because it ignores every cost of ownership.
Net rental yield: identifying the cost stack
Net yield strips out the annual costs you will actually incur:
Property tax (non-owner-occupier rate). When you rent out the entire flat, it is assessed at the non-owner-occupier property tax rate, which is progressive on the Annual Value (AV). HDB flats typically have AVs set by IRAS in the S$10,800 – S$18,000 range for four-room units in mature estates. At an indicative AV of S$14,400 (approximately 40% of gross rent, the rule of thumb IRAS uses), the non-owner-occupier rate schedule yields a property tax of approximately S$1,440 per year. Always verify your flat's actual AV and applicable rate on the IRAS Property Tax Rates page — rates are reviewed annually and the schedule can change.
Conservancy and S&CC charges. HDB estates charge monthly conservancy and Service & Conservancy Charges (S&CC). For a four-room flat these typically range from S$55 to S$75 per month depending on the town council, yielding an annual cost of approximately S$780.
Maintenance and minor repairs. Landlords are responsible for internal fixtures, plumbing, and appliances. Budget S$600 – S$1,200 per year as a prudent allowance; a flat with older fittings will sit toward the upper end.
Vacancy allowance. Tenancies typically run 12 or 24 months, but changeover periods can leave a flat empty for 2 – 4 weeks. A 1-month vacancy allowance per year (8.3% of annual rent) is a conservative industry assumption, equal to S$3,000 on this flat.
Agent commission. A standard HDB tenancy agreement involves a 1-month commission for a 12-month lease, shared or absorbed by the landlord. Amortised over a 12-month period this is S$3,000, though repeat tenants and self-managed renewals can eliminate this cost entirely.
Net yield calculation (indicative, as of 2026-06)
Annual gross rent: S$36,000
Less property tax: −S$1,440
Less S&CC: −S$780
Less maintenance: −S$900 (mid-range)
Less vacancy: −S$3,000
Less agent fee: −S$3,000
Net annual income: S$26,880
Net yield = S$26,880 ÷ S$650,000 × 100 = 4.13%
The gap between 5.54% gross and 4.13% net — 140 basis points — illustrates why gross yield alone is an unreliable guide to actual returns. For districts where resale prices are higher (say S$800,000 for a comparable flat near an MRT in Bishan or Queenstown), net yields compress further, sometimes below 3.5%. Compare district-level data using the Rental Yield Map to benchmark your town against the rest of Singapore.
Step by step: how to calculate your HDB rental yield
- Confirm eligibility before any calculation. Check that your MOP is satisfied if you plan to rent the whole flat. Log in to the HDB portal and apply for approval. No yield is meaningful without legal clearance.
- Establish your resale price (the denominator). Use the price you actually paid, not current market value — unless you are modelling the opportunity cost of selling. Verify the current market price of comparable units via HDB's Resale Flat Prices portal or the HDB Prices Map.
- Research achievable rent (the numerator). Check recent transaction rents for the same flat type, floor range, and town on data.gov.sg or HDB's rental transactions tool. Use the median of the last 6 months of comparable leases, not the highest listed asking rent.
- Calculate gross yield. Multiply your monthly rent by 12 to get annual rent. Divide by the flat price and multiply by 100. This is your headline number and is useful for comparing towns and flat types at a glance.
- Retrieve your flat's Annual Value and property tax. Log in to myTax Portal on iras.gov.sg to find your flat's AV. Apply the non-owner-occupier property tax rate schedule to compute the annual tax bill. Remember the rate is progressive: the first S$8,000 AV is taxed at 11%, the next S$4,000 at 16%, and so on up the schedule.
- Add all recurring costs. Compile: (a) annual S&CC from your town council notice; (b) a maintenance reserve based on the age and condition of your fittings; (c) a vacancy allowance of at least 1 month per year; (d) agent commission if applicable (usually 1 month's rent for a 12-month tenancy).
- Calculate net annual income and net yield. Subtract total annual costs from gross annual rent. Divide the result by your flat price and multiply by 100. Compare this figure against the risk-free rate (Singapore Savings Bonds, T-Bills) to gauge whether the rental premium justifies the management effort and liquidity risk.
- Run the numbers in the calculator. Use the HDB Rental Yield Calculator to model different rent, price, and cost scenarios instantly without manual spreadsheet work. You can also layer in CPF implications via the HDB Grant Calculator if grant monies formed part of your purchase price.
- Revisit annually. HDB AV and property tax rates are reviewed each year. Rents shift with market conditions. Rebuild the model each January to confirm the tenancy remains financially sound — do not set and forget.
Frequently asked questions
What is the difference between gross and net HDB rental yield?
Gross yield is simply annual rent divided by the purchase price, expressed as a percentage — it ignores every cost of ownership. Net yield subtracts the realistic annual cost stack: non-owner-occupier property tax (charged at a higher progressive rate by IRAS), HDB conservancy and S&CC fees, an allowance for maintenance and minor repairs, a vacancy buffer for the gap between tenancies, and agent commission. For a typical four-room flat in a mature estate (as of 2026-06), gross yield sits roughly 100 – 150 basis points above net yield. Net yield is the number that tells you what your investment actually earns after real-world costs.
Can I rent out my HDB flat before completing the Minimum Occupation Period?
You may rent out individual bedrooms before the 5-year MOP is fulfilled, subject to HDB approval and occupant-count limits. However, you cannot rent out the entire flat until the MOP is complete. Renting out the whole flat without HDB approval is a breach of the flat's conditions and can result in compulsory sale. Once MOP is met, you must still apply to HDB in writing and receive approval before executing any tenancy agreement. The current approval process and quota rules are detailed on the HDB Renting Out Your Flat page.
How does property tax affect HDB rental yield?
When you rent out the entire HDB flat, it shifts from owner-occupier to non-owner-occupier status for tax purposes, and IRAS applies a higher progressive rate schedule to the flat's Annual Value (AV). The AV is set by IRAS — not by the actual rent you charge — and is reviewed annually. For a four-room flat with an AV around S$14,000 – S$15,000, the non-owner-occupier property tax typically falls in the range of S$1,200 – S$1,800 per year (as of 2026-06). This cost alone can reduce net yield by 15 – 25 basis points. Always confirm your flat's actual AV on myTax Portal via iras.gov.sg before finalising your yield model.
Are HDB rental yields higher than private condo yields?
It depends on the town, flat type, and the price paid. HDB flats in non-mature estates with lower resale prices (S$350,000 – S$500,000 for a four-room) can produce gross yields of 6.5% – 8.0%, which competes favourably with many mass-market condominiums. Mature-estate HDB flats with high resale prices often yield less than comparable private condos in the same district. The key structural difference is that HDB lease decay shortens the asset's effective investment horizon: a flat with 60 years remaining is worth less per square foot than one with 85 years, and that depreciation is not captured in a simple yield calculation. Use the Rental Yield Map to compare HDB and private yields across districts side by side.
What costs are typically excluded from a gross yield calculation that I should budget for?
Gross yield deliberately omits all ownership costs to produce a standardised comparison metric. In practice, an HDB landlord must budget for: non-owner-occupier property tax (progressive IRAS schedule applied to Annual Value); monthly S&CC conservancy charges from the town council (typically S$55 – S$75 for a four-room flat); internal maintenance and appliance replacement (S$600 – S$1,200 per year is prudent); a vacancy allowance of at least one month per year to cover changeover periods; and agent commission of one month's rent for a standard 12-month tenancy. Collectively these items typically reduce gross yield by 120 – 160 basis points. If you finance the flat with a mortgage, loan interest is an additional major cost — factor this in via the Mortgage Calculator to compute leveraged returns accurately.