10 cheapest cities to rent in Canada in 2026, some under $1,300 a month

TORONTO — A recent real estate report has identified the lowest-cost cities for renting in Canada in 2026. Cities in Alberta and Saskatchewan top the ranking, with average rents below $1,500 a month.

The National Rent Report for November, published by Rentals.ca in collaboration with Urbanation, shows average rents continuing to fall nationally, even as prices rise again in some major cities.

The average asking rent in Canada was $2,036 in October, down 3.2 per cent from the same period last year. It was the 25th consecutive month of annual decline.

The 10 cheapest cities for rent in Canada

The report found that the lowest-cost cities are concentrated mainly in western Canada, specifically in Alberta and Saskatchewan.

The 10 lowest-cost cities, ranked by average monthly rent for purpose-built rental apartments and residential apartments listed for rent, are:

1. Fort McMurray, Alberta: $1,290
2. Medicine Hat, Alberta: $1,306
3. Lloydminster, Alberta: $1,319
4. Saskatoon, Saskatchewan: $1,392
5. Regina, Saskatchewan: $1,401
6. Red Deer, Alberta: $1,413
7. Grande Prairie, Alberta: $1,453
8. Lethbridge, Alberta: $1,521
9. Quebec City, Quebec: $1,578
10. Sarnia, Ontario: $1,592

The figures reflect average asking prices in October 2026, not necessarily the rents paid by current tenants.

Alberta dominates the list of cheapest cities

Alberta holds six places on the list, making it one of the main options for people looking for housing that costs less than in the big cities.

Fort McMurray topped the ranking with an average of $1,290 a month, followed by Medicine Hat and Lloydminster by a narrow margin.

These cities have smaller housing markets than Toronto and Vancouver, but moving to one requires considering job opportunities, available services and commuting costs.

Saskatchewan also had a notable presence with Saskatoon and Regina, where the average rent remained below $1,500 a month.

Toronto and Vancouver record new increases

By contrast, the report showed the rental market beginning to shift in the country's two largest cities.

The average rent for apartments in Toronto rose 1.6 per cent year over year to $2,590, ending a streak of declines that lasted 32 months.

Vancouver recorded a slight annual increase of 0.2 per cent, bringing the average rent to $2,735, after 34 months of annual declines.

Ottawa's prices also rose, by 0.3 per cent to $2,170.

These developments indicate that the national decline in rents does not mean prices are falling in every Canadian city.

Quebec City outperforms cities in eastern Canada

Quebec City stood out among the lower-cost options outside the Prairie provinces, with an average rent of $1,578.

In Ontario, Sarnia recorded an average of $1,592, making it one of the lowest-cost markets in the province among the cities covered in the report.

The results show large differences between local rental markets, even within a single province.

However, low housing costs alone are not enough to determine the most suitable city. Wages, taxes, transportation and available services should also be considered.

Will rents keep falling in 2027?

Although the national average continues to decline, the report noted that the pace of the decrease has slowed compared with previous months.

The annual decline narrowed to 3.2 per cent in October, after reaching 4.2 per cent in September and 4.8 per cent in August.

This means the Canadian rental market may be approaching a period of relative stability, though trends differ between cities and provinces.

Looking at lower-cost markets remains an option worth considering for families and newcomers, especially when housing costs line up with job opportunities and available income.