Will a garden suite or secondary suite pay for itself? Enter your build cost, loan and expected rent to see monthly cash flow, payback years and yield. Rent and vacancy start from dated CMHC data you can edit.
Garden Suite Rental Calculator: Cash Flow and Yield
Fees, rules and cost ranges last verified October 7, 2026
How to read your result
The headline is monthly cash flow: rent after vacancy, minus your running costs, minus the loan payment. A positive number means the suite pays for itself each month. A negative number means you top it up, which can still make sense if the suite adds value to the property or houses family.
Gross yield compares a full year of rent to what you spent building. Net yield first takes off vacancy and the monthly costs you entered, and is the fairest way to compare a suite with other investments. Simple payback is how many years of net income it takes to earn back the build cost, ignoring financing, tax and rent increases.
The default rent is a CMHC average for purpose-built apartments in October 2025. A new, detached garden suite with its own entrance and yard may rent higher; a small basement suite may rent lower. Replace the default with real listings near you.
Not sure what the suite will cost? Victoria builders publish garden suite ranges of $150,000 to $450,000+. You can also check how many units your lot allows before you decide between a suite and a multiplex.
How we calculate this
- Default rents (Victoria CMA, Westshore Zone 7, City of Victoria Zones 1-4) and vacancy: CMHC Rental Market Survey data tables, Victoria 2025, and the CMHC Rental Market Report (3.3% overall vacancy, October 2025). Checked 2026-10-07. City of Victoria has no 3-bedroom figure, so the CMA figure is used.
- Build cost hint: Stillwater Custom Homes garden suite guide (checked 2026-10-07).
- Loan payment: standard Canadian fixed-rate mortgage formula, interest compounded semi-annually and paid monthly. Amortization defaults to 25 years as a common choice; change it to match your lender.
- Net operating income = rent x (1 - vacancy) - monthly running costs. Payback = build cost / (12 x net operating income).
- Interest rate and running costs are your own inputs; we do not supply defaults for them.
- This is an estimate, not financial advice.
Frequently asked questions
What does a garden suite rent for in Victoria?
CMHC's October 2025 survey puts average purpose-built apartment rents in the Victoria area at $1,349 for a studio, $1,625 for one bedroom and $2,120 for two. Westshore (Langford, Colwood, View Royal, Sooke) averages were higher. A detached garden suite with its own yard can rent differently, so check local listings.
Is a garden suite a good investment?
It depends on build cost, rent and financing. At typical Victoria build costs of $150,000 to $450,000+, whether the rent covers the loan payment depends heavily on how much you borrow and at what rate. Run your own numbers here, and weigh any value the suite adds to the property.
What vacancy rate should I use?
CMHC reported a 3.3% overall vacancy rate for the Victoria area in October 2025, the highest since 1999. Use a higher figure if you expect turnover or furnished short-term gaps.
What is the difference between gross and net yield?
Gross yield is a year of full rent divided by the build cost. Net yield takes off vacancy and your running costs first. Neither includes loan payments; cash flow does.
Does this include tax?
No. Rental income is taxable and the build may affect your property assessment. Talk to your accountant.