Ottawa's condo market has been pitched to investors as an accessible entry into real estate investment for years. In 2026, the reality is more nuanced, and Ottawa's numbers actually look considerably better than Toronto's. But cash flow-positive condo investing still requires careful neighbourhood and unit selection.
Ottawa Condo Market Snapshot
Ottawa's condo benchmark price sits around $420,000–$480,000 for a one-bedroom and $550,000–$650,000 for a two-bedroom in 2026. High-demand areas (Centretown, Little Italy, Lebreton Flats near the LRT) command premiums, while suburbs like Nepean or Gloucester offer better value.
The Cash Flow Calculation: One-Bedroom Condo
Purchase price: $440,000 Down payment (20%): $88,000 Mortgage (5-year fixed at 4.9%, 25-year amortization): $2,070/month
Rental income: $2,150–$2,350/month Condo fees: $450–$600/month Property tax: $350–$420/month Insurance: $80–$100/month Vacancy provision (3%): $65/month Maintenance provision: $100/month
Monthly expenses: $3,115–$3,355 Monthly income: $2,150–$2,350 Cash flow: -$765 to -$1,005/month
Reality check: Most Ottawa one-bedroom condo investments are cash flow negative in 2026.
The Two-Bedroom Picture Is Better
Purchase price: $600,000 Down payment (20%): $120,000 Mortgage (5-year fixed at 4.9%, 25-year am): $2,820/month
Rental income: $2,800–$3,200/month Condo fees: $600–$750/month Property tax: $480–$560/month Insurance: $100/month Vacancy + maintenance: $200/month
Monthly expenses: $4,200–$4,430 Monthly income: $2,800–$3,200 Cash flow: -$1,000 to -$1,430/month
Two-bedrooms fare even worse on cash flow despite higher rents, because higher purchase prices drive larger mortgages.
Where Ottawa Condo Investment Can Work
Student-targeted units near uOttawa: Room-by-room leasing can push gross income to $3,000–$3,600/month on a two-bedroom, improving cash flow significantly.
Short-term rental (compliant, primary residence): As covered separately, Airbnb income can exceed long-term rental income by 40%–80% in Ottawa's core.
Long-term equity play: Cash flow-negative investors accepting monthly shortfalls are betting on appreciation. Ottawa condos have appreciated 3%–6% annually over the past decade, but this is not guaranteed.
The Case Against Ottawa Condo Investment
Condo fees are rising across Ottawa's older buildings (3%–6% annually in many buildings) and special assessments are increasingly common. The combination of high fees, rising property taxes, and stagnant rent growth in some submarkets is eroding already-thin margins.
For genuine cash flow, Ottawa duplexes and student rental houses dramatically outperform condos. Condos are better suited as primary residences or long-term equity investments than as cash flow rental properties.
