Investing in Hamilton rentals: the numbers
Hamilton is where a lot of first rentals get bought in Ontario: close enough to the GTA, cheaper than Toronto, and full of older two- and three-unit houses. Here are the numbers that decide whether a Hamilton deal works.
Hamilton at a glance
| Typical investor price band | $550,000 to $750,000 for a legal duplex/triplex [verify] |
|---|---|
| Average 2-bedroom rent | $1,850/mo [verify] |
| City residential mill rate | ~1.31% [verify] (loaded live in the app) |
| Typical cap-rate band | 4.5 to 6% [verify] |
| Rent control | Ontario guideline applies to most units built before Nov 2018 |
| 2026 Ontario rent-increase guideline | 2.5% [verify] |
A Hamilton triplex, run in full
Take a legal triplex listed at $699,000. Gross rents across the three units come to $4,200 a month. After property tax at Hamilton's mill rate, insurance, maintenance, management, and a 5% vacancy reserve, the operating expenses run near $1,250 a month. That leaves a net operating income around $35,400 a year, or a cap rate near 5.1%.
Now add the mortgage. With 20% down on a 30-year amortisation at current rates, the debt service lands close to $3,300 a month. The cash flow after the mortgage is thin but positive, and the DSCR sits just above the 1.20 a conventional lender wants. If the same triplex qualifies for CMHC MLI Select, a lower 1.10 DSCR threshold and a 40-year amortisation path change the math in your favour. That is the kind of difference a US-built tool misses, because it does not carry the CMHC paths at all.
This is also where the Hamilton listing trap shows up. The approved BrickROI deal story is a Hamilton case where the listing said one unit and the property actually had four. The numbers only work if the unit count, the rents, and the mill rate are real, not what the listing claims.
What is specific to Hamilton
- Many of the best cash-flow buildings are older converted houses. Confirm the units are legal and the rents are documented, not assumed.
- Ontario rent control caps how fast you can raise in-place rents. A below-market rent is upside, but you cannot lift it overnight.
- Hamilton's mill rate is higher than Toronto's. Property tax eats more of your NOI here than a Toronto investor expects.
Run a real Hamilton listing through BrickROI.
Paste the realtor.ca URL and the Canadian property data fills in the price, taxes, and rent comps. You get cap rate, DSCR, cash-on-cash, the CMHC and MLI Select paths, and a lender-ready PDF in two minutes.
Try a dealWant to run the cap rate yourself first? Start the cash-on-cash calculator with this example's numbers.
Hamilton investor questions
Is Hamilton a good place to invest in rentals?
It is one of Ontario's most-bought markets for first and second rentals because prices sit below Toronto while rents stay strong. The deal still has to pencil; run the specific numbers.
What is the average cap rate in Hamilton?
Most investor-grade Hamilton properties land in roughly a 4.5 to 6% cap-rate band, with older multi-unit houses at the higher end. Verify against the actual rents and the city mill rate.
Does rent control apply in Hamilton?
Yes. Hamilton follows Ontario's rules. Most units first occupied before November 15, 2018 are covered by the annual rent-increase guideline.