Investing in London rentals: the numbers
London is one of Southern Ontario's most-bought investor markets. Prices sit well below Toronto, a large student population supports rents, and there is a deep stock of older multi-unit houses. Here are the numbers.
London at a glance
| Average 2-bedroom rent | $1,475/mo (CMHC Rental Market Report, October 2025) |
|---|---|
| Average 1-bedroom rent | $1,250/mo (CMHC Rental Market Report, October 2025) |
| Rent growth, year over year | 4.2% (CMHC Rental Market Report, October 2025) |
| Rental vacancy rate | 2.3% (CMHC Rental Market Survey, October 2024) |
| City residential mill rate | 13.41 per $1,000 of assessed value, 2024 (municipal tax bylaws, 2024) |
| Rent control | 2.5% 2025 guideline on most pre-nov 2018 units |
Figures from CMHC, CBRE and Colliers Canada surveys and municipal tax bylaws. Cited with each row above. Rents are existing-tenant averages; new leases on turnover usually run higher.
A London fourplex, run in full
Take a small four-unit building in London. Using the CMHC Rental Market Report, October 2025 average two-bedroom rent of $1,475 a month across the four units, gross rent comes to about $5,900 a month, or $70,800 a year. At a purchase price near $779,000, the math looks like this.
Property tax at London's residential mill rate of 13.41 per $1,000 runs about $10,446 a year. Add roughly $19,800 for insurance, maintenance, management, and a vacancy reserve, and total operating expenses land near $30,246. That leaves a net operating income around $40,554 a year. That works out to an implied cap rate near 5.2% on this price.
Now add the mortgage. With 20% down on a 30-year amortisation at current rates, the debt service is the line that decides whether this deal cash-flows. If it qualifies for CMHC MLI Select, a 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. The numbers only hold if the rents, the unit count, and the mill rate are real, not what the listing claims.
What is specific to London
- London's residential mill rate is one of the highest in Ontario, so property tax is a large line in your operating costs.
- A big student population around the university supports rents but adds turnover. Plan a realistic vacancy reserve.
- Many cash-flow buildings are older converted houses. Confirm the units are legal and the rents are documented, not assumed.
Run a real London 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 numbers yourself first? Start the cash-on-cash calculator with this example's figures.
London investor questions
Is London a good place to invest in rentals?
It depends on the specific deal. London has an average two-bedroom rent of $1,475 a month and a rental vacancy rate of 2.3% per the CMHC Rental Market Survey, October 2024. Run the actual numbers on the building before you decide.
What is the average rent in London?
Per the CMHC Rental Market Report, October 2025, the average two-bedroom rent in London is $1,475 a month and the average one-bedroom is $1,250. Rents grew about 4.2% year over year. New leases on turnover typically run higher than these existing-tenant averages.
Does rent control apply in London?
Ontario caps annual rent increases for most units first occupied before November 15, 2018. The 2025 guideline is 2.5%. Units first occupied on or after that date are exempt from the cap.