Question Summary:
If a person owns a house and uses it for rental income, will zakaat be calculated just on the income generated through it or on the value of property as well?

Question Detail:

 
If a person owns a house and uses it for rental income, will zakaat be calculated just on the income generated through it or on the value of property as well?

Answer :

In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh
Zakaat is only due on the rental income accrued from the property. There is no Zakaat on the investment amount.  The rental income will be considered as cash on hand and Zakaat will be calculated according to one’s personal financial situation.
 
And Allah Ta’āla Knows Best
 
Ismail Desai,
Darul Iftaa
Checked and Approved,
Mufti Ebrahim Desai.