Best Durham Cities for Rental Properties in 2026

When investors ask me which Durham city is "best" for a rental property, my honest answer is: it depends on what you want the property to do for you. 🏡 Some of my clients want monthly cash flow. Others want a low-maintenance rental in a stable family neighbourhood. Others are playing a 10-year game around transit and new jobs. The good news is that Durham Region has a city that fits each of those goals, and the gap in entry prices between them is bigger than most people expect.

In my last investor post, Is Durham Region Good for Real Estate Investors?, I covered the big picture. This time I'm ranking the five lakeshore cities, Oshawa, Clarington, Whitby, Ajax and Pickering, by investor goal, using the latest TRREB, CMHC and Rentals.ca data. As a former banker, I'll look at each one the way a lender would: what it costs to get in, what it rents for, and who your tenant is likely to be.

The key insight: rents are similar, prices are not 📊

Here's the pattern that shapes every ranking below. Across Durham, freehold townhouses are a popular rental choice because they're more affordable than detached homes and usually have no condo fees. In October 2026, the average freehold townhouse price ranged from about $596,000 in Oshawa to about $749,000 in Pickering, a spread of roughly 26%.

Now compare rents. In CMHC's most recent Rental Market Survey (October 2025), average purpose-built rents across the same five cities sat within about 12% of each other, from $1,634 in Whitby to $1,826 in Pickering.

CMHC's figures cover purpose-built apartments and rows, so they're a benchmark, not a quote for a renovated townhouse or a legal basement suite. But the lesson holds: you don't pay 26% more in rent when you live in Pickering, but you can pay 26% more to buy there. That's why the "best" city depends on whether you're buying for cash flow, stability or long-term growth.

Durham rental cities at a glance

Here's how the numbers line up. The 20% down payment column matters because mortgage default insurance is generally only available for owner-occupied homes, so most non-owner-occupied rentals need at least 20% down. Always confirm with your lender.

Sources: TRREB Market Watch, October 2026 (Att/Row/Townhouse); CMHC Rental Market Survey, October 2025 (row and apartment, all unit sizes). CMHC suppressed Pickering's vacancy rate for reliability. Monthly averages can swing with the mix of homes sold.

1. Oshawa: best for cash flow 💰

Oshawa has the lowest entry prices of the five lakeshore cities. The average detached home sold for $705,333 in October 2026 and the average freehold townhouse for $596,227, while CMHC's average purpose-built rent ($1,777) was right in line with the rest of Durham. Lower purchase prices against similar rents are what give Oshawa its cash-flow edge.

Demand comes from several directions: Ontario Tech University and Durham College in the north end, Lakeridge Health Oshawa, and a large base of working households. Rentals.ca's November 2026 report put Oshawa's average asking rent for apartments and condos at $1,966, with two-bedrooms averaging $2,015.

Two things I always flag for Oshawa investors:

• Rental licensing near the campuses. Rental properties in the City of Oshawa's licensing area around Durham College and Ontario Tech University need a Residential Rental Housing Licence, with inspections and fees (Class A: $275 plus $75 per bedroom, plus a $50 application fee, valid for two years). Zoning in that area does not permit lodging houses. Check the City's map before you buy.
• Vacancy varies by area. CMHC's 4.0% vacancy for the city was the highest of the five, so the specific street, the unit's condition and your tenant screening matter a lot.

2. Clarington (Bowmanville and Courtice): best for steady occupancy 🔑

Clarington had the tightest rental market in CMHC's survey, with a 1.6% vacancy rate, and freehold townhouses averaged $651,131 in October 2026. That combination appeals to investors who value low turnover over maximum cash flow.

Long-term demand drivers include Ontario Power Generation's Darlington site, where construction of Canada's first grid-scale small modular reactor has been approved, and Metrolinx's GO Lakeshore East extension toward Bowmanville, which is under construction. No opening date has been published for the GO extension, so I treat it as a long-term bonus, not a reason to overpay today.

3. Whitby (including Brooklin): best for low-maintenance family rentals 🌳

Whitby rentals tend to attract families who want good schools, parks and space, and family tenants often stay longer. CMHC put Whitby's vacancy at 2.5%. The trade-off is price: freehold townhouses averaged $723,921, and Whitby's CMHC average rent ($1,634) was the lowest of the five, so cash flow is tighter. Whitby suits investors with a larger down payment who want a stable, lower-hassle hold. Brooklin's newer subdivisions can be attractive for townhouse rentals where the numbers work.

4. Ajax: best for commuter demand and rent momentum 🚆

Ajax sits on the Lakeshore East GO line and Highway 401, which keeps it on the radar for Toronto commuters. Rentals.ca's November 2026 report showed Ajax with an average asking rent of $2,319 for apartments and condos, with one-bedroom asking rents up 7.0% year over year. CMHC vacancy was 2.0%.

Ajax was also the only lakeshore city with a higher average sale price than a year earlier in TRREB's October report, so entry costs are firmer. It works best for investors who can buy with a healthy down payment and want reliable tenant demand.

5. Pickering: best for long-term growth 📈

Pickering is closest to Toronto, has the highest CMHC average purpose-built rent of the five ($1,826), and continues to grow, including the new Seaton community in the north. But it also has the highest freehold townhouse price ($748,681), which makes positive cash flow harder on day one. Pickering is often a better fit for investors focused on appreciation who can carry a property comfortably.

A quick rent-to-price check: condos in Oshawa vs Ajax

For investors looking at condo apartments, here's a simple gross yield comparison using October 2026 averages. Treat it as a rough benchmark only: these TRREB averages are based on small numbers of sales (6 in Oshawa and 4 in Ajax), and gross yield ignores condo fees, taxes, insurance and financing.

• Oshawa: $2,015 two-bedroom asking rent × 12 ÷ $413,500 average condo apartment price ≈ 5.8% gross
• Ajax: $2,285 two-bedroom asking rent × 12 ÷ $528,125 average condo apartment price ≈ 5.2% gross

Once condo fees and carrying costs come off, those numbers shrink quickly. That's why I run a full cash-flow analysis on every specific unit before a client makes an offer. My upcoming post, How to Calculate Rental Property ROI, will walk through that math step by step.

Don't forget the extra-unit opportunity 🏠

Under Ontario's More Homes Built Faster Act, 2022, municipalities must permit up to three residential units on most serviced residential lots, for example a main home, a basement apartment and a garden suite, subject to local zoning, the Building Code and permits. In every Durham city, a home with a legal second unit can change the numbers dramatically. I'll go deeper in Buying a Property With a Basement Apartment. Always confirm what's legal and permitted with the City before you count on that rent.

How we approach this: The Affluentia Way

Every client I work with goes through the same four-stage plan we call The Affluentia Way.

• Clarity: we start with your numbers and goals: down payment, borrowing power, and whether you want cash flow, stability or long-term growth, so we know which Durham city truly fits.
• Positioning: we line up financing, pull current rents for the exact neighbourhood, check licensing and zoning, and stress-test the deal before you're competing for a property.
• Execution: we find the right property, negotiate price and conditions, coordinate inspections and your lawyer, and get you to closing.
• Expansion: once your first rental is performing, we plan the next one, whether that's a second city, a property with a legal second unit or your first multi-family building.

Ready to find your best Durham rental city?

If you're deciding between Oshawa, Clarington, Whitby, Ajax or Pickering for your next rental, I'd love to run the numbers with you. 📞 Book a 30-minute call or call me directly at 647.282.8078.

Neeraj Khanna, Broker of Record, Affluentia Realty

This article is general information only and is not tax, legal or financial advice. Market figures are averages and change monthly. Please speak with your lender, accountant and real estate lawyer, and confirm zoning and licensing with your municipality, before making any investment decision.