How to Use the Studio/Condo Rental Yield Calculator
Before buying a studio or condo as a rental investment, the annual rental yield is one of the first numbers worth checking. This calculator takes your purchase price, monthly rent, monthly HOA (homeowners association) fee, and closing costs to calculate your net annual yield on total invested capital.
Your total investment is the purchase price plus closing costs, and your net annual income is 12 months of rent minus 12 months of HOA fees. Unlike a single-family rental, condo and studio investments almost always carry a recurring HOA fee that eats directly into your rental income, so leaving it out overstates your real return.
A headline yield number is only a starting point, though. Mortgage interest (if financed), property tax, insurance, and vacancy periods between tenants will all pull your realized return below the gross figure shown here. Condos and studios also tend to see faster HOA fee increases and special assessments than single-family homes, so it's worth budgeting conservatively and checking the building's reserve fund health before you buy.
Frequently Asked Questions
It varies by market, but an annual yield of 5-7% is generally considered solid for a condo or studio rental. Once you factor in mortgage interest, property tax, and vacancy periods, the actual return will usually be lower than this headline figure.
HOA (homeowners association) fees are deducted directly from your rental income in this calculation, unlike a single-family rental with no such fee. A high monthly HOA can quietly erase a meaningful share of your net yield, so always confirm the current fee before buying.