According to Statista, the inflation rate could be around 5.64% in 2022, which is the highest in the last 2 decades in Canada. In addition, expected recession in 2022 & onwards, rent, price hikes, and other expenses towards tough times for the middle class.
Living in an expensive city like Toronto is getting tough day by day. In that circumstances, you might be thinking about the “Affordable Rental Housing” option.
So, nowadays, people are looking for an affordable housing options to reduce their expenses. I am here to help you with all the details. You will get all the essential information about affordable rental housing. People with high salaries have so many options to live in Toronto.
But, those looking for a cheaper option like you need guidance to find the most suitable housing at affordable prices. Keep reading till the end & save money by choosing reasonable accommodation for you.
Let’s not wait to dive into the pool!
Earlier definition:
Affordable housing was based on average rent paid by the tenants or renters in Toronto.
Updated definition:
That housing when the entire amount of monthly cost, including gross monthly rent, utilities like hydro, heat, water, and hot water, is less than Toronto’s average rent by housing type according to Canada Mortgage and Housing Corporation (CMHC), or 30% of before-tax monthly earnings of tenants as follows-
Unit type | Percentile income |
Studio units | 1-person households at or below the 50th percentile income |
1-bedroom units | 1-person households at or below the 60th percentile income |
2-bedroom units | 2-person households at or below the 60th percentile income |
3-bedroom units | 3-person households at or below the 60th percentile income |
Source: https://www.toronto.ca/
FYI: If you are unfamiliar with the term “Hydro,” then you should know that electricity is known as “Hydro” by many Canadians. It is a short form of hydroelectricity.
An affordable housing program is a program where housing is subsidized by public, private, and non-profit sectors. Not only rental housing but also there are options like – ownership and co-operative ownership, temporary and permanent housing [Source].
Several affordable houses are available in the Toronto area, actually in the Ontario Province. These are mentioned as follows –
According to, HousingTO 2020-2030 Action Plan, the main goal is to accommodate Torontonians in safe, affordable, and suitable housing. In addition, to prevent homelessness to ensure housing stability for all.
This action plan focuses on 13 key points to establish affordable housing for tenants of Toronto. Check it –
First, check the following 6 situations so that you can find yourself.
Situation 1: You are planning to move to Toronto from a different city
Situation 2: You are planning to move to Toronto from another province
Situation 3: Future immigrant of Canada & planning to live in Toronto
Situation 4: You already moved to Toronto but still searching for an affordable option
Situation 5: You cannot afford to buy a house
Situation 6: All other situations that are not mentioned above. I just added Situation 6 to include you if you are not listed in situations 1-5.
If you are among one of them, there is a chance that you are searching for affordable rental housing. If so, you should find suitable plus affordable housing.
Now, you will get a glimpse of Unit type, Unit size, Average Market Rent (AMR), and monthly occupancy cost of an affordable house. According to Toronto.ca, the AMR is published yearly. Then it’s easy to calculate the monthly occupancy cost of an affordable home.
Several affordable housing programs charge different percentages of AMR. It depends on the agreement. But, the most common occupancy cost is 80% of AMR.
Table 1: Average Market Rent (AMR) in the city of Toronto [Last updated March 2022] is as follows –
Unit type | Unit Size | 2022 Average Market Rent (AMR) | 2022 80% of Average Market Rent |
Hostel | Hostel | $961 | $769 |
Apartment | Bachelor apartment | $1,225 | $980 |
1 bedroom apartment | $1,446 | $1,157 | |
2 bedroom apartment | $1,703 | $1,362 | |
3 bedroom apartment | $1,961 | $1,569 | |
4 bedroom apartment | $2,239 | $1,791 | |
5 bedroom apartment | $2,504 | $2,003 | |
Townhouse | 2 bedroom townhouse | $1,948 | $1,558 |
3 bedroom townhouse | $2,029 | $1,623 | |
4 bedroom townhouse | $2,587 | $2,070 | |
5 bedroom townhouse | $2,992 | $2,394 | |
6 bedroom townhouse | $3,397 | $2,718 |
Data Source: Toronto.ca
If you pay utility costs for affordable housing, a utility allowance for Torontonians. It will be deducted from your monthly occupancy cost.
Table 2: Utility Allowance of Affordable House for Torontonian in 2022 are as follows –
Unit type | Unit Size | Hydro | Heat | Water | Hot Water |
Hostel | Hostel | $41 | $30 | $12 | $22 |
Apartment | Bachelor apartment | $41 | $30 | $12 | $22 |
1 bedroom apartment | $41 | $30 | $12 | $22 | |
2 bedroom apartment | $58 | $35 | $22 | $30 | |
3 bedroom apartment | $68 | $36 | $26 | $38 | |
4 bedroom apartment | $72 | $36 | $29 | $46 | |
5 bedroom apartment | $72 | $36 | $29 | $46 | |
Townhouse | 2 bedroom townhouse | $58 | $35 | $22 | $30 |
3 bedroom townhouse | $68 | $36 | $26 | $38 | |
4 bedroom townhouse | $72 | $36 | $29 | $46 | |
5 bedroom townhouse | $72 | $36 | $29 | $46 | |
6 bedroom townhouse | $72 | $36 | $29 | $46 |
Data Source: Toronto.ca
Read the following resources related to Affordable Housing (If you have interest & want to know more information):
To learn about Affordable Housing Partners, Click here.
To know the previous Average Market Rents & Utility Allowances, Click here.
According to Toronto.ca, the requirement is as follows –
Torontohousing shared the following formula to calculate the household income limit:
Formula | Income limit when signing a lease |
Rent for applicable bedroom size: Rent x 4 x 12 months = | $_ _ _ _ _ |
Suppose your occupancy cost is $1,200 per month, then the household income limit is $57,600 per year. ($1,200 x 4 x 12 = $57,600). Check the full document here.
Acceptable documents to prove the status of all the members of your family in Canada includes:
If you are applying for Rent-Geared-to-Income housing, all of your household members must upload the following information:
The following link is the official link to apply & submit all the necessary documents for the City of Toronto. In addition, you can see your application status, notifications, and important updates here as well.
Apply here: City of Toronto Rent-Geared-to-Income
I considered a few things like easy access to groceries, hospitals, transportation, landscape, rental pricing, reviews of earlier residents, etc., while choosing neighborhoods for affordable rent in Toronto. From our experience, I can recommend a few affordable neighborhoods in Toronto. The following neighborhood areas are cheap to rent.
So, please consider the following areas –
Indeed, now you have enough information on Affordable Rental Housing in Toronto. I shared all the requirements of affordable housing. I also shared many resources so that you can find all the necessary links from this article. With this information, your application process will be easy for sure.
Lastly, don’t forget to share this blog with your friends and family via social media.
Goodbye for now!
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