How Much Rent Can You Afford in London?
London has the loosest rental market of any Ontario city here, with vacancy at 4.0%. The quoted two-bedroom average is $1651 and the asking rent $1930 — a 16.9% gap, well below Hamilton’s or Toronto’s.
Step 1 of 2
What you can actually rent
$1,800to$2,700
There is no single answer — three different figures are all defensible, and only one of them is the 30% rule you have been told about.
$1,800/mo
CMHC affordability standard 30%
What CMHC calls affordable. A policy measure, not a landlord rule.
$1,956/mo
What applicants actually pay 32.6%
The average across roughly 300,000 Canadian applications a year — 26% in Winnipeg, 35.6% in Vancouver.
$2,700/mo
The one published underwriting limit 45%
A rent-guarantee insurer will cover up to this. Well beyond comfortable.
In London
The "average rent" figure you will see quoted is $1,651 — that is what sitting tenants pay. You would be asked $1,930, $279 more, because turnover here is only 15%.
Both a one and a two-bedroom are within what people on your income pay.
Pay $1,956 — what people on your income really do — and $3,594 a month is left for everything else, after $450 of loan and card payments.
In Ontario a landlord may not apply this ratio at all
A landlord here may consider your income only alongside credit references and rental history — never on its own. Why
How this was worked out
- Your monthly income before tax$72,000 a year is $6,000 a month
- 30% — the CMHC standard$1,800 a month. This measures core housing need; it is not a rule any landlord applies.
- 32.6% — what applicants really pay$1,956 a month, the average of real Canadian rental applications.
- After your existing payments$450 of loan and card payments leaves $5,550 a month, so rent at the CMHC standard leaves $3,750 for everything else.
- What that rents in LondonSitting tenants pay $1,651 for a two-bedroom, but you would be asked $1,930 — $279 more, because turnover is only 15%.
- In Ontario, no ratio may be appliedKearney v. Bramalea held that minimum income criteria breach the Human Rights Code, alone or combined with other criteria, because they have disparate impact on protected grounds and no proven predictive value. O. Reg. 290/98 permits a landlord to consider income only together with credit references, rental history and a credit check.
Between $1,800 and $2,700 a month. People on this income typically pay $1,956.
Rent near $1,956 leaves $3,594 a month for everything else. If the gap between payday and rent day is the problem, NotchUp can advance up to $1,500 of wages you have already earned for a $5 flat fee.
See what you could advance- $1930asking, two-bedroom
- +16.9%vs the quoted average
- 15.1%annual turnover
A 4.0% vacancy rate changes the negotiation
London’s vacancy is the highest among the Ontario cities in this set. That does not make it cheap, but it does mean listings sit rather than vanish.
Where units compete for tenants, asking rents drift back toward the surveyed average. London’s 16.9% gap is roughly half Hamilton’s, and the vacancy rate is most of the explanation.
The ratio rule applies here too
An Ontario landlord may not use a rent-to-income ratio to screen you. Kearney v. Bramalea found such criteria breach the Human Rights Code, and the decision was upheld on appeal.
Income may be considered only alongside credit references, rental history and a credit check. If a London landlord tells you the rent must be a third of your income, that is not a legal requirement.
A large student population moves the market on a calendar
Western and Fanshawe put tens of thousands of renters into the same city on the same academic schedule. Listings and prices move sharply around the start of term.
Turnover of 15.1% reflects that rhythm. Timing a search away from the August peak is worth more here than in cities where demand is steady year-round.
An older rental stock
Much of London’s rental supply is older low-rise built decades ago, rather than the recent towers that dominate newer markets. Older stock is cheaper and comes with different trade-offs on heating costs and maintenance.
Age also affects which units fall under Ontario’s rent increase guideline. Anything first occupied before 15 November 2018 is covered; newer buildings are not.
Direction of travel
National asking rents have fallen for 22 straight months. Looser markets feel that first, and London is among the loosest in Ontario.
That gives a prospective tenant more room than the same rent would have bought two years ago — the gap narrows when landlords have to compete.
Frequently asked questions
What is the average rent in London, Ontario?
CMHC puts the two-bedroom average at $1651 across sitting tenants. Advertised rents average $1930, a 16.9% difference.
Is London cheaper than Toronto or Hamilton?
Yes, on both measures — and the gap between quoted and asking rent is also smaller here, so the saving is closer to what the averages suggest than it is in either of those cities.
Can a London landlord require me to earn three times the rent?
No. Applying a rent-to-income ratio is unlawful in Ontario. Income can only be considered together with credit references, rental history and a credit check.
Does the older housing stock cost more to run?
Often. Many London rentals predate modern insulation standards, so a lower rent can be partly offset by winter heating. Ask whether utilities are included before comparing two listings on rent alone.
When is the best time to look?
Away from the August and September student peak. With 15.1% turnover concentrated around the academic calendar, timing matters more in London than in most cities.
Sources
Every rate, threshold and formula on this page was verified against these primary sources. If a figure here disagrees with one of them, the source is right and we want to know.