Cap rate is net operating income divided by purchase price, and in Saskatoon that calculation is sensitive to two local specifics: The Residential Tenancies Act, 2006 sets the notice rules for raising rent since there is no rent control, and secondary suites need City of Saskatoon permit approval before their income counts toward the number at all.
An unpermitted basement suite can make a property look like it cash flows well on a spreadsheet while an appraiser or lender discounts that income entirely, which is exactly the gap between a paper cap rate and a financeable one.
Running the real numbers on a specific address, permit status included, tells you more than any citywide average. Get your hand-reviewed valuation from Joel Dyck.