Understanding Affordability
At Build Canada Homes (BCH), affordable housing means housing costs that do not exceed 30 percent of a household’s income before tax. Affordability varies by region and income level, so BCH uses a place based approach to reflect local conditions.
This approach supports mixed income communities, where households with different income levels can live in the same neighbourhood. By offering a range of housing options, BCH helps ensure long term affordability and more resilient communities.
Estimate affordable rent
BCH uses local median household income to determine what rents are considered affordable in each region. This allows projects to reflect what households can reasonably afford, from deeply affordable options to near market rents.
Estimate affordable rent
BCH uses local median household income to determine what rents are considered affordable in each region. This allows projects to reflect what households can reasonably afford, from deeply affordable options to near market rents.
Estimated affordable
- Affordable to buy (est.)
- —
- Income band
- —
Illustrative only. Not a policy determination or an offer of housing.
Calculating Affordability
The affordability calculator applies a consistent, income based method to estimate rents.
This method ensures affordability reflects both local conditions and the scale of housing needs.
-
Start with local income data Use median before tax household income for your area
-
Adjust for timing Increase income levels annually to reflect expected growth
-
Match income to unit size Align income with typical household size by unit type
-
Apply income bands Very low, low, moderate, and median income ranges are used to define affordability
-
Calculate affordable rent Housing costs are set at a maximum of 30 percent of adjusted income
Sample affordable rent thresholds by income level
| Area median household income (2026) | Illustrative maximum affordable rent per unit size* | |||
|---|---|---|---|---|
| Studio | 1 bedroom | 2 bedroom | 3 bedroom | |
Very low income (0-25% median income) | $293 | $377 | $598 | $781 |
Low income (26-50% median income) | $586 | $754 | $1,197 | $1,563 |
Moderate income (51-75% median income) | $878 | $1,131 | $1,795 | $2,344 |
Median income (76-100% median income) | $1,171 | $1,508 | $2,393 | $3,125 |
* Note: These figures are illustrative, based on national income levels.
Actual rent thresholds will vary by municipality and change over time based on updated income data.
Sample affordable rent thresholds by region
| Census subdivision | Maximum affordable rent for a 1-bedroom unit for low-income Canadians (2026) |
|---|---|
| Vancouver, British Columbia | $838 |
| Toronto, Ontario | $803 |
| Sarnia, Ontario | $750 |
| Brandon, Manitoba | $738 |
| Prince Albert, Saskatchewan | $717 |
| Montréal, Quebeç | $683 |
| Amherst, Nova Scotia | $548 |
How to calculate affordability in your region
Build Canada Homes uses a clear, income-based method to help determine what affordable housing looks like in each region. Here's how to calculate affordability using local income data and household size.
1. Find local income data
Start with the median before-tax household income by household size for your area. Use the Census Profile from the 2021 Census of Population for your census subdivision.
2. Annual adjustment
Calculate the difference between the tax year in Census 2020 and your project’s leasing start year. Increase the income by 2% per year to reflect income growth.
Example:
2026 – 2020 = 6 years → compounded over 6 years at 2% = 12.62% increase
3. Match income to unit size
Use the following household size estimates based on unit type:
| Unit type | Estimated household size |
|---|---|
| Studio | 1.000 |
| 1 bedroom | 1.276 |
| 2 bedroom | 2.000 |
| 3 bedroom | 3.000 |
| 4+ bedroom | 4.500 |
Examples of affordable rent thresholds by region.
When the average household size isn't a whole number, income is estimated by using the incomes of the 2 closest household sizes.
For example, income for a 1 bedroom is calculated as follows:
1. Find the income difference between a 1-person and a 2-person household for the region.
2. Take 27.6% of that difference (because the average size is about 1.276 people).
3. Add that amount to the 1-person household income.
This method ensures the calculated income stays below the 2-person household income.
4. Apply income bands
Determine affordability by applying the following ratios to the median household income adjusted to bedroom count:
| Income level | % of median income |
|---|---|
| Very low income | 0 - 25% |
| Low income | 26 50% |
| Moderate income | 51 - 75% |
| Median income | 76 - 100% |
5. Calculate affordable rent
Multiply each income value by 30% to find the maximum affordable annual rent. Then divide by 12 to get the monthly rent.
