With home prices in many parts of Canada reaching record highs, finding a solid investment property under $400,000 is becoming more difficult.
But there are still a few markets across the country where you can buy a property that not only fits your budget, but also delivers strong rental income and long-term growth potential.
This article outlines a few of the best options for investment real estate in Canada, based on insights from top agents across the country.
1. Regina, Saskatchewan
Average Home Price: ~$325,000
Expected Rent: $1,800 to $2,200 per month (duplex or suited homes)
Regina remains one of the most affordable cities in the country, with a stable economy and a consistent rental market. You can often find a suited home or duplex for under $400K, offering the opportunity to rent out two units and generate over $2,000 in monthly income.
What makes Regina attractive is its low volatility. It may not skyrocket in value, but it rarely sees large dips either. Investors who want steady cash flow with minimal surprises should take a serious look.
Agent contact: Brett Ackerman
brett@brettackerman.com
2. Cold Lake, Alberta
Average Home Price: ~$300,000
Expected Rent: $2,000 to $2,400 per month
Cold Lake is an emerging investment market located a few hours north of Edmonton. Its economy is driven by both the military base and the oil sector, and it has major infrastructure investment coming in the next few years.
Rental demand is growing faster than home prices, which means your cash flow potential here is strong. Investors are snapping up older duplexes and single-family homes under $300K, and they’re renting them out for well over $2,000 per month.
With a 10-year military retrofit project underway and future developments like carbon capture on the horizon, Cold Lake is well positioned for growth.
Agent contact: Megan Juszczyk
meganj@royallepage.ca
3. St. John’s, Newfoundland
Average Home Price: ~$350,000
Expected Rent: $1,800 to $2,200 per month
St. John’s has seen a strong recovery in both the housing and rental markets, supported by technology, government, and the oil sector. While prices have risen in the last year, there are still small multi-unit or single-family homes with basement suites available under $400K.
This market reminds many investors of Calgary 15 years ago. The fundamentals are improving, and the long-term outlook is solid. Inventory remains tight, so it helps to act quickly when good properties come up.
Agent contact: Nevin Hollett
nevin@hollettgroup.com
4. Other Affordable Canadian Markets
Moncton or Saint John, New Brunswick
New Brunswick has become a go-to destination for affordability and yield. Duplexes or small multi-unit properties are often available under $400K, and rents are rising steadily. The cost of entry is low, and vacancy rates are among the best in the country.
Winnipeg, Manitoba (select neighbourhoods)
Some older inner suburbs of Winnipeg still offer detached homes or duplexes in the low-to-mid $300s. The rental market is strong near universities and hospitals, and the city’s central location makes it a transportation and logistics hub.
Bonus: What About U.S. Properties?
Some Canadian investors are starting to look south of the border, especially in states like Michigan, Ohio, and Florida, where property prices and rental yields can be very attractive.
Why consider the U.S.?
- Cheaper entry prices in many cities
- Stronger cash flow in certain regions
- More inventory available in your price range
What to watch out for:
- Currency risk and tax implications
- Financing restrictions for non-residents
- Higher maintenance or property management complexity
If you’re considering U.S. real estate, make sure to speak with an accountant who understands cross-border investing.
You’ll also want to partner with a trusted local Realtor in the area you’re considering.
Final Thoughts
Buying a rental property under $400,000 in Canada is still possible — but only if you look in the right places.
One of the most important traits for any investor is FOCUS. We’ve met dozens of investors that had all the tools — they knew how to analyze properties, they had the means & ability, but they got lost in the weeds of TOO MANY options.
Don’t be like them. Pick an area you’re most interested and go deep with your research. If it looks good, then go for it.
Markets like Regina, Cold Lake, and St. John’s still offer solid opportunities for positive cash flow and long-term appreciation.
If you’d like help getting connected to any of the agents listed here, feel free to reach out. These are all professionals I know very well and trust personally.
