The City of Toronto works with organizations to create and operate affordable rental homes.
In November 2023, City Council adopted an income-based definition of affordable housing for new projects which has been enacted through the Official Plan. The City also oversees affordable housing projects that utilize various previously approved definitions of affordable housing. This includes projects that incorporate Provincially funded programs and definitions such as Average Market Rent (AMR) to determine affordability, as well as for units secured under various social and affordable housing programs that continue to operate under the previous definitions. The result is that the City continues to work with multiple definitions of affordable housing in order to advance new projects and support existing and established affordable housing projects and programs.
Organizations developing, acquiring, and operating Affordable, Rent-Controlled, and Rental Replacement housing units must follow the rent levels set by the City of Toronto included below. Any organization who has signed an agreement with the City must reference their agreement’s definitions to determine which affordable rent amount, outlined below, to use when setting initial affordable rents.
For those looking for rental rates for tenants or housing support, please refer to the following web pages:
Random Draws for Affordable Rental Homes – City of Toronto
Housing Help & Support Services
City of Toronto Average Market Rents (AMR) are published annually by CMHC. An organization who has signed an agreement with the City using AMR will use the table below.
2026 City Average Market Rents (AMR)
| Unit Size | 2026 80% of AMR | 2026 100% AMR | 2026 150% AMR |
| Hostel/Dwelling Room | $997 | $1,246 | $1,869 |
| Bachelor/studio apartment | $1,199 | $1,499 | $2,249 |
| 1-bedroom apartment | $1,410 | $1,763 | $2,645 |
| 2-bedroom apartment | $1,644 | $2,055 | $3,083 |
| 3-bedroom apartment | $1,889 | $2,361 | $3,542 |
| 4-bedroom apartment | $2,324 | $2,905 | $4,358 |
| 5-bedroom apartment | $2,599 | $3,249 | $4,874 |
| 6-bedroom apartment | $2,599 | $3,249 | $4,874 |
| 1-bedroom townhouse | $1,521 | $1,901 | $2,852 |
| 2-bedroom townhouse | $1,706 | $2,133 | $3,200 |
| 3-bedroom townhouse | $1,750 | $2,187 | $3,281 |
| 4-bedroom townhouse | $2,367 | $2,958 | $4,438 |
| 5-bedroom townhouse | $2,737 | $3,422 | $5,133 |
| 6-bedroom townhouse | $3,108 | $3,885 | $5,828 |
When is this Rent Level applied?
Initial affordable rents are established through the terms of an Agreement between a housing provider and the City of Toronto. Affordable rents are then increased annually by the amount allowed in the Agreement.
How is this Rent Level calculated?
Average Market Rents (AMR) are published annually by the Canada Mortgage and Housing Corporation (CMHC) in the Rental Market Report (Tables 1.1.2 and 2.1.2, Zones 1-17).
The City’s Official Plan sets an annual affordable rent level, which is the lower of rents based on income and average market rent (AMR).
Official Plan – 2026 Affordable Rent Levels
| Unit Type | Affordable Rent Levels |
| Studio | $1,127 |
| 1-bedroom | $1,426 |
| 2-bedroom | $2,055 |
| 3-bedroom | $2,351 |
When is this Rent Level applied?
This rent level is used for new affordable rental homes secured through the planning process (e.g. in-kind community benefits charge and secondary plan policies), as well as for rental housing demolition applications.
How is this Rent Level defined and calculated?
The City’s Official Plan defines Affordable Rental housing as housing where the total monthly shelter costs (gross monthly rent, inclusive of utilities for heat, hydro, hot water and water) is at or below the lesser of one times the average City of Toronto rent, by dwelling unit type, as reported annually by the Canada Mortgage and Housing Corporation, or 30 per cent of the before-tax monthly income of renter households in the City of Toronto as follows:
Official Plan – 2026 Affordable Rent Levels
| Unit Type | Indicator Income* | Rent Levels Based on Income | Rent Levels based on AMR | 2026 Affordable Rent Levels |
| Studio | $45,072 | $1,127 | $1,499 | $1,127 |
| 1-bedroom | $57,059 | $1,426 | $1,763 | $1,426 |
| 2-bedroom | $105,487 | $2,637 | $2,055 | $2,055 |
| 3-bedroom | $113,878 | $2,847 | $2,351 | $2,351 |
*Indicator incomes are calculated by adjusting 2020 indicator incomes (as reported by the 2021 Census) for changes to the Consumer Price Index (as reported by Statistics Canada for the Toronto Census Metropolitan Area) — 139.9 as of January 1, 2020 and 167.7 as of January 1, 2026.
Mid-range rents are rents that exceed affordable rents, but which are at or below 150% of average market rent.
Official Plan – 2026 Mid-Range Rent Levels
| Unit Type | Mid-Range (Affordable)
Rent Levels |
Mid-Range (Moderate)
Rent Levels |
Above Mid-Range Rent Levels |
| Studio | $1,499 | $2,248 | $2,249 or more |
| 1-Bedroom | $1,763 | $2,644 | $2,645 or more |
| 2-Bedroom | $2,055 | $3,082 | $3,083 or more |
| 3-Bedroom | $2,351 | $3,526 | $3,527 or more |
When are these Rent Levels applied?
These rent levels are used for rental housing demolition applications.
How are these Rent Levels calculated?
Mid-range rents (affordable) are the total monthly shelter costs that exceed Affordable rents (as defined by the Official Plan) but are at or below 100 per cent of the average City of Toronto rent, by unit type, as reported annually by Canada Mortgage and Housing Corporation.
Mid-range rents (moderate) are the total monthly shelter costs that exceed Affordable rents and/or Mid-range rents (affordable) but are at or below 150 per cent of the average City of Toronto rent, by unit type, as reported annually by Canada Mortgage and Housing Corporation.
The City’s Official Plan sets annual affordable and mid-range rent level tiers for dwelling rooms that are based off average market rent for studio apartments.
2026 Dwelling Room Affordable & Mid-Range Rent Levels
| Dwelling Room Rent Tier | Rent range as a % of the CMHC average City of Toronto rent for studio unit | 2026 Dwelling Room Rent Levels |
| Affordable Tier One | 60% or lower | $899 |
| Affordable Tier Two | 61% to 80% | $1,199 |
| Mid-Range Tier One | 81% to 100% | $1,499 |
| Mid-Range Tier Two | 101% to 120% | $1,798 |
When are these Rent Levels applied?
These rent levels are used for development applications that demolish six or more dwelling rooms and replace them with rental housing.
What is a dwelling room?
Dwelling room means a room used as living accommodation that is available for rent and that is not self-contained, such as multi-tenant homes or rooming houses. A dwelling room may contain private sanitary facilities or cooking facilities, but not both. Living accommodation that is exempted from the Residential Tenancies Act, such as student housing provided by an educational institution, is not included in the Official Plan’s definition of dwelling room.
How are these Rent Levels calculated?
The Official Plan outlines four rent tiers for dwelling rooms, including two affordable rent tiers and two mid-range rent tiers. Rents are calculated based on a percentage of the average City of Toronto rent for a studio unit as reported annually by the Canada Mortgage and Housing Corporation (CMHC).
For more information on Official Plan Housing Policies, see the webpage here.
Projects applying to and approved under the City’s Rental Housing Supply Program (RHSP) and Multi-Unit Residential Acquisition (MURA) programs incorporate an income based definition of Affordable Rental Housing by using the lower of the affordable rents set by the Province of Ontario and the City’s income-based definition of affordable rental housing under the Official Plan.
In setting initial rents, organizations with a Contribution Agreement that reference the Rental Housing Supply program rents must use the table below.
Current RHSP Affordable Rent Levels
| Unit Type | Current Affordable Rent Levels |
| Dwelling room | $899 |
| Studio apartment | $1,127 |
| 1-bedroom apartment | $1,426 |
| 2-bedroom apartment | $2,055* |
| 3-bedroom apartment | $2,290* |
| 4-bedroom apartment | $3,245 |
*as of July 1st, 2026
When is this Rent Level applied?
RHSP: Applicants approved for financial incentives and funding under the RHSP must use this rate as the rent level for their proposed Affordable Rental Homes.
MURA: Applicants approved for funding under the MURA Program to acquire existing rental housing must use this rent level for their proposed Affordable Rental Homes.
Housing providers with Contribution Agreements that reference the Rental Housing Supply rents, must use the table above to set rents.
How is this Rent Level calculated?
This Rent Level is calculated by using the lower of the City’s income-based definition of affordable rental housing under the Official Plan and the Provincial definition as issued in Affordable Residential Units bulletin, as they are both updated.
Current RHSP Affordable Rents
| Unit Type | 2026 Official Plan Affordable Rent Level | 2025-2026 Provincial Bulletin Rent Level | Current Affordable Rent Levels |
| Dwelling room* | N/A | N/A | $899 |
| Studio apartment | $1,127 | $1,456 | $1,127 |
| 1-bedroom apartment | $1,426 | $1,715 | $1,426 |
| 2-bedroom apartment | $2,055 | $1,985 | $1,985 |
| 3-bedroom apartment | $2,351 | $2,250 | $2,250 |
| 4-bedroom apartment** | N/A | N/A | $3,245 |
*Dwelling room affordable rent levels are based on the Official Plan definition for Dwelling Room Tier 1 Affordable Rents.
** 4-bedroom affordable rent levels for RHSP are calculated based on the lower of the household income for a 4-person renter household at the 60th income percentile and the average market rents for 4+ bedroom apartment units in the City of Toronto, as determined by CMHC.
The RHSP includes financial incentives to support the delivery of rent-controlled homes by Community Housing Providers, with a target of approving 17,500 units by 2030.
Current RHSP Rent-Controlled Rents
| Unit Type | 150% Average Market Rent |
| Studio | $2,184 |
| 1-bedroom | $2,572 |
| 2-bedroom | $2,977 |
| 3-bedroom | $3,385 |
| 4-bedroom | $4,867 |
When is this Rent Level applied?
Applicants applying for the purposes of accessing financial incentives should use this rate as the rent level for their proposed Rent-Controlled Homes.
Housing providers with Agreements that reference setting the initial rents to 150% average market rent, must use the rent amounts indicated above.
How is this Rent Level calculated?
The City defines new Rent-Controlled Homes as rental homes where monthly rents are higher than the income-based affordable rents, and at or below 150 per cent of the average City of Toronto rent, by unit type, as reported annually by Canada Mortgage and Housing Corporation (CMHC).
4-bedroom rents for RHSP are based on 150% of average market rents for 4+ bedroom apartment units in the City of Toronto, as set by CMHC.
This definition is consistent with the Official Plan definition of mid-range (moderate) rents and include limiting rent increases to the provincial rent increase guideline under the Residential Tenancies Act, 2006 plus 2%.
For more information on the Rental Housing Supply Program, see the RHSP webpage.
In Affordable Housing homes where tenants pay for any utility cost, they are entitled to a utility allowance deducted from their monthly rent. This includes tenants who pay separately or are bulk, or suite-metered.
2026 Affordable Housing Utility Allowances
|
Unit Size |
Hydro |
Heat |
Water |
Hot Water |
|---|---|---|---|---|
| Hostel/dwelling room |
$46 |
$31 |
$14 |
$22 |
| Bachelor/studio apartment |
$46 |
$31 |
$13 |
$22 |
| 1 bedroom apartment |
$46 |
$31 |
$13 |
$22 |
| 2 bedroom apartment |
$66 |
$35 |
$25 |
$31 |
| 3 bedroom apartment |
$77 |
$37 |
$30 |
$38 |
| 4 bedroom apartment |
$82 |
$37 |
$34 |
$47 |
| 5 bedroom apartment |
$82 |
$37 |
$34 |
$47 |
| 6 bedroom apartment |
$82 |
$37 |
$34 |
$47 |
| 1 bedroom townhouse |
$67 |
$35 |
$24 |
$31 |
| 2 bedroom townhouse |
$67 |
$35 |
$25 |
$31 |
| 3 bedroom townhouse |
$77 |
$37 |
$30 |
$38 |
| 4 bedroom townhouse |
$82 |
$37 |
$34 |
$47 |
| 5 bedroom townhouse |
$82 |
$37 |
$34 |
$47 |
| 6 bedroom townhouse |
$82 |
$37 |
$34 |
$47 |
When are Utility Allowances applied?
In units that are subject to any of the Affordable Rent Levels listed on this page, if a tenant is paying any of the utility costs listed in the below table, the Affordable Rent level paid by the tenant should decrease accordingly. These utility adjustments also apply to replacement rental units.
How are Utility Allowances calculated?
Utility allowances are adjusted annually by the Ministry of Municipal Affairs and Housing using the Ontario Consumer Price Index.
| Unit size | 2016 AMR | 2017 AMR | 2018 AMR | 2019 AMR | 2020 AMR | 2021 AMR | 2022 AMR | 2023 AMR | 2024 AMR | 2025 AMR |
| Hostel | $756 | $770 | $796 | $839 | $894 | $942 | $961 | $1,024 | $1,117 | $1,126 |
| Bachelor | $942 | $962 | $1,019 | $1,089 | $1,148 | $1,211 | $1,225 | $1,317 | $1,427 | $1,456 |
| 1 bdrm apartment | $1,110 | $1,137 | $1,202 | $1,270 | $1,374 | $1,431 | $1,446 | $1,538 | $1,708 | $1,715 |
| 2 bdrm apartment | $1,301 | $1,341 | $1,426 | $1,492 | $1,591 | $1,661 | $1,703 | $1,811 | $1,992 | $1,985 |
| 3 bdrm apartment | $1,540 | $1,544 | $1,595 | $1,664 | $1,766 | $1,896 | $1,961 | $2,096 | $2,241 | $2,268 |
| 4 bdrm apartment | $1,761 | $1,795 | $1,854 | $1,954 | $2,083 | $2,194 | $2,239 | $2,387 | $2,604 | $2,625 |
| 5 bdrm apartment | $1,970 | $2,008 | $2,074 | $2,185 | $2,329 | $2,454 | $2,504 | $2,669 | $2,912 | $2,936 |
| 6 bdrm apartment | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $2,669 | $2,912 | $2,936 |
| 1 bdrm townhouse | N/A | N/A | N/A | N/A | N/A | N/A | $1,330 | $1,663 | $1,711 | $1,708 |
| 2 bdrm townhouse | $1,289 | $1,318 | $1,430 | $1,660 | $1,683 | $1,988 | $1,755 | $1,841 | $1,755 | $1,841 |
| 3 bdrm townhouse | $1,572 | $1,581 | $1,698 | $1,731 | $1,749 | $1,928 | $2,082 | $1,973 | $2,082 | $1,973 |
| 4 bdrm townhouse | $1,872 | $1,899 | $2,021 | $2,203 | $2,230 | $2,546 | $2,069 | $2,587 | $2,662 | $2,657 |
| 5 bdrm townhouse | $2,165 | $2,195 | $2,337 | $2,548 | $2,579 | $2,945 | $2,393 | $2,992 | $3,079 | $3,073 |
| 6 bdrm townhouse | N/A | N/A | N/A | N/A | N/A | N/A | $2,717 | $3,397 | $3,496 | $3,489 |
| Unit Size | June 1, 2024 | January 2025 | August 1, 2025 | January 2026 |
| Dwelling Room | $899 | |||
| Studio | $1,088 | $1,109 | $1,109 | $1,127 |
| 1-bedroom | $1,378 | $1,404 | $1,404 | $1,426 |
| 2-bedroom | $1,992 | $1,985 | $1,985 | $1,985 |
| 3-bedroom | $2,190 | $2,190 | $2,250 | $2,250 |
| 4-bedroom | $3,245 |
Hydro Allowance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| Hostel/dwelling room | N/A | N/A | N/A | N/A | N/A | N/A | $41 | $42 | $43 | $46 |
| Bachelor/studio | $35 | $40 | $34 | $34 | $34 | $34 | $41 | $42 | $44 | $46 |
| 1 bedroom apartment | $35 | $40 | $34 | $34 | $34 | $34 | $41 | $42 | $44 | $46 |
| 2 bedroom apartment | $50 | $57 | $48 | $48 | $49 | $49 | $58 | $61 | $62 | $66 |
| 3 bedroom apartment | $58 | $67 | $56 | $56 | $57 | $57 | $68 | $70 | $73 | $77 |
| 4 bedroom apartment | $61 | $71 | $59 | $59 | $61 | $61 | $72 | $75 | $77 | $82 |
| 5 bedroom apartment | $61 | $71 | $59 | $59 | $61 | $61 | $72 | $75 | $77 | $82 |
| 6 bedroom apartment | N/A | N/A | N/A | N/A | N/A | N/A | $72 | $75 | $77 | $82 |
| 1 bedroom townhouse | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $61 | $63 | $67 |
| 2 bedroom townhouse | $50 | $57 | $48 | $48 | $49 | $49 | $58 | $61 | $62 | $66 |
| 3 bedroom townhouse | $58 | $67 | $56 | $56 | $57 | $57 | $68 | $70 | $73 | $77 |
| 4 bedroom townhouse | $61 | $71 | $59 | $59 | $61 | $61 | $72 | $75 | $77 | $82 |
| 5 bedroom townhouse | $61 | $71 | $59 | $59 | $61 | $61 | $72 | $75 | $77 | $82 |
| 6 bedroom townhouse | N/A | N/A | N/A | N/A | N/A | N/A | $72 | $75 | $77 | $82 |
Water Allowance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| Hostel/dwelling room | N/A | N/A | N/A | N/A | N/A | N/A | $12 | $12 | $12 | $13 |
| Bachelor/studio | $9 | $10 | $10 | $10 | $11 | $11 | $12 | $12 | $12 | $13 |
| 1 bedroom apartment | $9 | $10 | $10 | $10 | $11 | $11 | $12 | $12 | $12 | $13 |
| 2 bedroom apartment | $17 | $18 | $19 | $20 | $20 | $21 | $22 | $22 | $23 | $24 |
| 3 bedroom apartment | $20 | $22 | $22 | $24 | $24 | $25 | $26 | $27 | $28 | $29 |
| 4 bedroom apartment | $23 | $24 | $25 | $26 | $27 | $28 | $29 | $30 | $31 | $32 |
| 5 bedroom apartment | $23 | $24 | $25 | $26 | $27 | $28 | $29 | $30 | $31 | $32 |
| 6 bedroom apartment | N/A | N/A | N/A | N/A | N/A | N/A | $29 | $30 | $31 | $33 |
| 1 bedroom townhouse | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $22 | $23 | $24 |
| 2 bedroom townhouse | $17 | $18 | $19 | $20 | $20 | $21 | $22 | $22 | $23 | $24 |
| 3 bedroom townhouse | $20 | $22 | $22 | $24 | $24 | $25 | $26 | $27 | $28 | $29 |
| 4 bedroom townhouse | $23 | $24 | $25 | $26 | $27 | $28 | $29 | $30 | $31 | $32 |
| 5 bedroom townhouse | $23 | $24 | $25 | $26 | $27 | $28 | $29 | $30 | $31 | $32 |
| 6 bedroom townhouse | N/A | N/A | N/A | N/A | N/A | N/A | $29 | $30 | $31 | $33 |
Gas Heat Allowance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| Hostel/dwelling room | N/A | N/A | N/A | N/A | N/A | N/A | $30 | $35 | $37 | $36 |
| Bachelor/studio | $24 | $22 | $24 | $24 | $26 | $26 | $30 | $35 | $37 | $36 |
| 1 bedroom apartment | $24 | $22 | $24 | $24 | $26 | $26 | $30 | $35 | $37 | $36 |
| 2 bedroom apartment | $28 | $25 | $28 | $28 | $30 | $30 | $35 | $40 | $42 | $41 |
| 3 bedroom apartment | $29 | $26 | $29 | $29 | $31 | $31 | $36 | $42 | $44 | $43 |
| 4 bedroom apartment | $29 | $26 | $29 | $29 | $31 | $31 | $36 | $42 | $44 | $43 |
| 5 bedroom apartment | $29 | $26 | $29 | $29 | $31 | $31 | $36 | $42 | $44 | $43 |
| 6 bedroom apartment | N/A | N/A | N/A | N/A | N/A | N/A | $36 | $42 | $44 | $43 |
| 1 bedroom townhouse | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $40 | $42 | $41 |
| 2 bedroom townhouse | $28 | $25 | $28 | $28 | $30 | $30 | $35 | $40 | $42 | $41 |
| 3 bedroom townhouse | $29 | $26 | $29 | $29 | $31 | $31 | $36 | $42 | $44 | $43 |
| 4 bedroom townhouse | $29 | $26 | $29 | $29 | $31 | $31 | $36 | $42 | $44 | $43 |
| 5 bedroom townhouse | $29 | $26 | $29 | $29 | $31 | $31 | $36 | $42 | $44 | $43 |
| 6 bedroom townhouse | N/A | N/A | N/A | N/A | N/A | N/A | $36 | $42 | $44 | $43 |
Gas Hot Water Allowance
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| Hostel/dwelling room | N/A | N/A | N/A | N/A | N/A | N/A | $22 | $25 | $26 | $25 |
| Bachelor/studio | $17 | $16 | $17 | $17 | $19 | $19 | $22 | $25 | $26 | $26 |
| 1 bedroom apartment | $17 | $16 | $17 | $17 | $19 | $19 | $22 | $25 | $26 | $26 |
| 2 bedroom apartment | $24 | $22 | $24 | $24 | $26 | $26 | $30 | $35 | $37 | $36 |
| 3 bedroom apartment | $30 | $27 | $30 | $30 | $32 | $32 | $38 | $44 | $46 | $44 |
| 4 bedroom apartment | $37 | $33 | $37 | $37 | $40 | $40 | $46 | $54 | $56 | $55 |
| 5 bedroom apartment | $37 | $33 | $37 | $37 | $40 | $40 | $46 | $54 | $56 | $55 |
| 6 bedroom apartment | N/A | N/A | N/A | N/A | N/A | N/A | $46 | $54 | $56 | $55 |
| 1 bedroom townhouse | N/A | N/A | N/A | N/A | N/A | N/A | N/A | $35 | $37 | $36 |
| 2 bedroom townhouse | $24 | $22 | $24 | $24 | $26 | $26 | $30 | $35 | $37 | $36 |
| 3 bedroom townhouse | $30 | $27 | $30 | $30 | $32 | $32 | $38 | $44 | $46 | $44 |
| 4 bedroom townhouse | $37 | $33 | $37 | $37 | $40 | $40 | $46 | $54 | $56 | $55 |
| 5 bedroom townhouse | $37 | $33 | $37 | $37 | $40 | $40 | $46 | $54 | $56 | $55 |
| 6 bedroom townhouse | N/A | N/A | N/A | N/A | N/A | N/A | $46 | $54 | $56 | $55 |