Rent prices are finally falling across much of Canada, but where you live still makes an enormous difference.
The average asking rent for all residential properties across Canada fell to $2,035 per month in August 2026, according to the latest National Rent Report from Rentals.ca and Urbanation.
That was down 4.8% from August 2025 and marked the 23rd consecutive month of year-over-year rent declines.
Canadian rents are now 7% below where they were two years ago and at their lowest August level since 2022.
But renters willing to look outside Canada’s most expensive cities can still find considerably lower prices.
The latest data shows Canada’s cheapest rental markets are concentrated primarily in Alberta and Saskatchewan, with average rents in several cities sitting hundreds of dollars below the national average.
Here are some of the cheapest cities to rent in Canada in 2026.
Canada’s Cheapest Rental Markets In 2026
According to Rentals.ca and Urbanation’s August 2026 data, these were the five most affordable rental markets tracked in the report:
| City | Province | Average Asking Rent |
|---|---|---|
| Fort McMurray | Alberta | $1,277 |
| Lloydminster | Alberta/Saskatchewan | $1,330 |
| Medicine Hat | Alberta | $1,345 |
| Saskatoon | Saskatchewan | $1,393 |
| Regina | Saskatchewan | $1,414 |
For comparison, the average asking rent across Canada was $2,035.
That means a renter paying the average in Fort McMurray could spend roughly $758 less per month than the national average.
Over a year, that works out to more than $9,000 in potential rent savings.
1. Fort McMurray, Alberta: $1,277
Fort McMurray was the cheapest rental market tracked in the latest national report, with an average asking rent of approximately $1,277 per month.
That’s roughly 37% below the national average of $2,035.
The northern Alberta community is best known as the centre of Canada’s oil sands industry, which makes its economy considerably different from most Canadian cities.
Housing costs have also historically been more volatile because rental demand is closely tied to employment in the energy sector.
Still, for renters comparing monthly housing costs alone, Fort McMurray currently sits at the bottom of Canada’s rental-price rankings.
2. Lloydminster, Alberta/Saskatchewan: $1,330
Lloydminster had an average asking rent of approximately $1,330 in August.
The city is unusual because it sits directly on the Alberta-Saskatchewan border.
At the current average, renters are paying about $705 less per month than the Canadian average.
That works out to roughly $8,460 over a full year.
However, Lloydminster was one of the markets where rents were moving higher rather than lower.
Average asking rents were up 12.8% year over year, one of the largest annual increases among markets outside Canada’s six largest cities.
So while Lloydminster remains one of the cheapest rental markets in the country, that affordability gap has been narrowing.
3. Medicine Hat, Alberta: $1,345
Medicine Hat ranked as the third-most affordable rental market in the latest report.
Average asking rent for purpose-built and condominium apartments reached approximately $1,345 per month in August.
That is still nearly $700 below the national average.
But like Lloydminster, rents in Medicine Hat are increasing.
Average asking rents rose 4.5% year over year.
Even after that increase, Medicine Hat remains considerably cheaper than Calgary, where average asking rent was $1,825 in August.
A renter paying the citywide average in Medicine Hat would spend approximately $480 less per month than someone paying Calgary’s average.
4. Saskatoon, Saskatchewan: $1,393
Saskatoon remains one of the cheapest major rental markets in Canada.
Average asking rent was approximately $1,393 per month in August.
That puts the Saskatchewan city more than $600 below the national average.
Saskatoon is also a much larger urban centre than communities such as Fort McMurray or Medicine Hat, making it particularly noteworthy for renters looking for lower housing costs without moving to a smaller market.
The city is home to the University of Saskatchewan, major healthcare facilities and a diversified employment base.
5. Regina, Saskatchewan: $1,414
Regina rounded out the five cheapest rental markets in the latest report, with average asking rent of approximately $1,414 per month.
That’s about $621 below the Canadian average.
Like Saskatoon, Regina offers a lower-cost rental market while still functioning as a significant Canadian urban centre.
Rentals.ca’s separate 2026 ranking of renter-friendly Canadian cities placed Regina at the top of its overall list after considering affordability, availability, rental stability and neighbourhood livability.
Edmonton Is The Cheapest Of Canada’s Six Largest Rental Markets
Among Canada’s six largest rental markets, Edmonton was the cheapest in August.
Average asking rent was approximately:
Edmonton: $1,520
That was down 4.1% from a year earlier.
Edmonton remains substantially cheaper than Calgary despite both cities being in Alberta.
Calgary’s average asking rent was approximately $1,825 in August.
That’s a difference of roughly $305 per month, or about $3,660 per year.
How Canada’s Biggest Cities Compare
Canada’s largest rental markets remain considerably more expensive than the country’s cheapest cities.
| Major City | August 2026 Average Asking Rent |
|---|---|
| Edmonton | $1,520 |
| Calgary | $1,825 |
| Montreal | $1,955 |
| Ottawa | $2,168 |
| Toronto | $2,570 |
| Vancouver | $2,704 |
Vancouver remained the most expensive of Canada’s six largest rental markets at $2,704 per month.
Toronto followed at $2,570.
That means the difference between average rent in Fort McMurray and Vancouver is approximately:
$1,427 per month
Over 12 months, that’s more than $17,000.
Of course, renters are not choosing cities based on rent alone.
Employment opportunities, salaries, transportation, family connections, climate and lifestyle all play a major role in where someone can realistically live.
But the comparison illustrates just how large Canada’s regional rental gap remains.
Canadian Rents Have Fallen For 23 Straight Months
The national rental market has changed significantly since rents peaked in 2024.
Average asking rent across all residential property types was $2,035 in August, down 4.8% from a year earlier.
It marked the 23rd consecutive month in which rents were lower than the same month one year earlier.
Rents have now fallen approximately 7% over two years.
August also marked the first monthly decline in five months, with asking rents slipping 0.1% from July.
The national average is now at its lowest level for the month of August since 2022.
Condo Rents Are Falling Faster
The decline has not been equal across every type of rental property.
Purpose-built rental asking rents fell 3.3% year over year to an average of $2,038.
Condominium rents fell much faster, dropping 7.7% annually to $2,050.
Studio condo rents experienced an even larger decline of 9.3%.
Houses, townhouses and other secondary-market rentals saw the steepest overall decline, falling 8.3% year over year to $2,014.
The data suggests renters have gained more negotiating power in some segments of the market as rental supply has increased.
Ontario And B.C. Rents Are Falling
Some of Canada’s largest and most expensive provinces are seeing meaningful declines.
Average rents fell year over year by:
British Columbia: -4.6%
Alberta: -4.3%
Ontario: -3.5%
But not every province is seeing relief.
Nova Scotia rents increased 3.1% annually, while Manitoba recorded a smaller increase of 0.2%.
Nova Scotia also remained the most expensive province for apartment and condo rents in August, with an average of approximately $2,356.
That narrowly exceeded British Columbia at $2,353.
The Rentals.ca report notes that Nova Scotia’s average is influenced by a relatively large share of newly constructed and larger rental units in the available listing data.
Calgary Rents Are Down 4.5%
Calgary recorded the largest annual decline among Canada’s six largest rental markets in August.
Average asking rent fell 4.5% year over year to $1,825.
Vancouver and Edmonton were close behind, with rents down 4.1% in both markets.
Toronto rents declined by a more modest 1.4%, while Montreal fell 1.1%.
Ottawa rents were down 1.6%.
The monthly picture was more mixed.
Toronto and Calgary were the only two large cities where rents fell from July to August.
Vancouver, Edmonton, Montreal and Ottawa all recorded monthly increases.
Some Smaller Cities Are Getting More Expensive
Being inexpensive today does not necessarily mean rents are falling.
Lloydminster is one of the clearest examples.
Despite remaining Canada’s second-cheapest market in the report, rents jumped 12.8% from last year.
Medicine Hat rents increased 4.5%.
Barrie, Ontario saw the largest annual rent increase among the smaller markets tracked, rising 14.3%.
Rentals.ca says Barrie’s increase was partly caused by a large influx of more expensive units from a newly completed rental project.
Dartmouth, Nova Scotia followed with an annual increase of 10.8%.
So renters considering relocation should look at both current rent levels and the direction the market is moving.
Where Are Rents Falling The Fastest?
Some suburban markets are moving in the opposite direction.
Longueuil, Quebec recorded the largest annual decline among the smaller markets tracked, with rents falling 12.5%.
Abbotsford, B.C. followed at -10.5%.
Côte Saint-Luc, Quebec was down 10.3%, while Scarborough, Ontario saw average rents fall 9.3%.
That could make some historically expensive markets more attractive to renters who want to remain close to larger cities.
What Counts As “Average Rent” In This Report?
The Rentals.ca and Urbanation National Rent Report is based on asking rents for available listings rather than rents paid by every existing tenant.
That distinction matters.
Someone who has lived in the same rent-controlled apartment for several years may pay much less than the current asking rent for a similar unit.
The data includes listings for several housing types, including rental apartments, condominium apartments, detached and semi-detached houses, townhouses and basement apartments.
Single-room rentals and statistical outliers are excluded.
The city comparisons should therefore be viewed as a snapshot of what someone searching for a new rental is currently encountering in the market.
Canada’s Cheapest Rents Are Concentrated In The Prairies
The latest numbers reinforce a long-standing regional divide in Canada’s rental market.
Alberta and Saskatchewan dominate the list of the country’s least expensive rental markets.
Fort McMurray, Lloydminster, Medicine Hat, Saskatoon and Regina all have average asking rents below $1,500.
Edmonton, meanwhile, remains the cheapest of Canada’s six largest rental markets at $1,520.
Compare that with Toronto at $2,570 or Vancouver at $2,704, and the gap becomes substantial.
Nationally, renters are finally seeing some relief after several years of rapid increases.
But where you live continues to matter more than almost anything else.
Methodology
This article primarily uses the September 2026 National Rent Report from Rentals.ca and Urbanation, which analyzes August 2026 rental listings.
The report measures asking rents for available properties rather than rents currently paid by all Canadian tenants.
Rent levels can vary significantly by unit type, neighbourhood, building age and amenities.
Smaller markets can also experience larger percentage swings when the number or type of available listings changes.
References
Rentals.ca and Urbanation – September 2026 National Rent Report
Rentals.ca – National Rent Report
Rentals.ca – Canada’s 100 Best Cities For Renters In 2026
Rentals.ca – Where Is Rent Most Affordable In Canada?
Rentals.ca – Red Deer Apartments And Average Rents
Rentals.ca – Lethbridge Apartments And Average Rents
CHAT News Today – Medicine Hat Rents Rise As National Rental Market Softens
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