Property Rental Yield (an example of gross yield)

Rental 2 bedroom apartment (1,300 sf) Annual Gross Yield Nett Yield after 40% overhead

$2,300 $400,000 6.9% 4.1%
$2,300 $500,000 5.5% 3.3%
$2,300 $600,000 4.6% 2.8%


This 2 bedroom apartment (1,300 sf) is available for rental in May 2009. Monthly rental $2,300.

Probably, nett rental yield is around 4%.