The vacancy rate is the key indicator of the rental market. A low rate means strong demand, units that rent quickly, and reduced income-loss risk for investors. In Montreal, CMHC reports a rate of approximately 1.5% in Q1 2026 — a level that clearly favours plex owners. If you are considering investing in a Montreal plex, understanding this rate is essential.
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Estimate my property📈 CMHC Q1 2026 Data
1.5%
Vacancy rate
< 3%
Landlord-favourable threshold
+2.8%
Montreal pop. growth
According to the CMHC (Canada Mortgage and Housing Corporation) rental market report, the vacancy rate in the Montreal CMA remains at approximately 1.5% in early 2026. This level is well below the 3% equilibrium threshold, indicating a market where rental housing demand significantly exceeds available supply.
🏠 Impact on Your Rental Income
A low vacancy rate has several positive effects for real estate investors:
Less Revenue Loss
At 1.5% vacancy, your units are occupied an average of 98.5% of the time — near full capacity.
Faster Rentals
Units rent in days rather than weeks, reducing income gaps between tenants.
Upward Pressure on Rents
Scarce availability allows landlords to set competitive rents at lease renewal or re-listing.
To fully understand your investment’s overall return, see our guide on calculating plex ROI in Montreal.
🧮 Concrete Calculation: Vacancy Impact on a 6-Plex
Let’s see the concrete difference between a 1.5% and 3% vacancy rate on a 6-plex with rents of $1,800/month per unit.
Scenario Data
• Number of units: 6
• Monthly rent per unit: $1,800
• Annual gross potential income: 6 × $1,800 × 12 = $129,600
Scenario A: 1.5% Vacancy
Loss = $129,600 × 1.5% = $1,944
Net revenue after vacancy: $129,600 − $1,944 = $127,656 / year
Scenario B: 3% Vacancy
Loss = $129,600 × 3% = $3,888
Net revenue after vacancy: $129,600 − $3,888 = $125,712 / year
Result: The difference between 1.5% and 3% vacancy represents $1,944 in additional annual revenue ($127,656 − $125,712). Over 5 years, that’s nearly $9,720 in extra income thanks to Montreal’s tight rental market.
📍 Vacancy Rates by Neighbourhood
| Neighbourhood | Approx. Rate | Trend |
|---|---|---|
| Plateau-Mont-Royal | 0.8% | ⬇️ Very tight |
| Rosemont–La Petite-Patrie | 1.0% | ⬇️ Tight |
| Villeray–Saint-Michel | 1.2% | ➡️ Stable |
| Côte-des-Neiges–NDG | 1.8% | ➡️ Stable |
| Montréal-Nord | 1.4% | ⬇️ Declining |
| Rivière-des-Prairies | 2.0% | ➡️ Stable |
💡 Investment Strategy in a Tight Market
Target areas below 1.5%
Central neighbourhoods with very low rates offer the best revenue security and rent-growth potential.
Budget with a realistic rate
Even though the current rate is 1.5%, budget 3-5% vacancy in your projections to stay conservative.
Consider 5+ unit buildings
More units = distributed vacancy risk. A 6-plex absorbs the loss of one tenant better than a duplex.
Act quickly
A tight market also means more competition among buyers. Get your financing pre-approved in advance.
Take advantage of Montreal’s tight rental market. Get a free estimate for your investment project.
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