How We Ranked These Markets
We evaluated Ontario's major duplex markets on four criteria: achievable cap rate (based on current asking prices and market rents), vacancy rate (lower is better for landlords), entry price (total cash required to purchase), and employment stability (the quality of the tenant pool).
Toronto and Ottawa are not on this list. Toronto's cap rates are too compressed (typically 3–4.5%) to justify the risk at current mortgage rates. Ottawa offers stability but entry prices push cap rates to 4.5–5.5% — tight but workable in very specific pockets.
1. Windsor — The Cap Rate Champion
Windsor consistently delivers the highest achievable cap rates of any Ontario market — regularly 8–10% on well-priced properties. This is driven by a combination of low entry prices (duplexes regularly available in the $380,000–$550,000 range) and strong rental demand from a diversified employment base including auto sector revival, the growing EV/battery manufacturing cluster, and University of Windsor student demand.
Best neighbourhoods: South Windsor (near University), Walkerville, Ford City. Avoid: Far east Windsor industrial corridors (flooding risk, lower tenant quality).
2. Oshawa / Durham — Value Near the GTA
Oshawa and the broader Durham Region offer GTA proximity at a significant price discount. Duplexes trade in the $550,000–$720,000 range — substantially below comparable properties in Hamilton or Brampton. The tenant pool is strong: General Motors' renewed Oshawa assembly operations provide blue-collar employment stability, while proximity to Toronto attracts remote workers and young families priced out of the core.
Cap rates of 7–8.5% are achievable with selective buying. The key is focusing on legal, properly maintained duplexes rather than the many poorly converted single-family homes that flood the market.
Best neighbourhoods: Lakeview, McLaughlin, Vanier. Watch for: Illegal basement suites marketed as duplexes — high prevalence in this market.
3. Kitchener-Waterloo — Tech Sector Stability
The Waterloo Region's tech sector has created a tenant pool that is increasingly white-collar, high-income, and stable. Companies like Google, Shopify (remote), BlackBerry, and hundreds of startups in the Waterloo ecosystem employ a tenant class that pays rent reliably and treats properties well. This translates to lower effective vacancy and less tenant turnover than markets with more transient populations.
Duplex entry prices range from $580,000–$780,000, with cap rates of 7–8% achievable. The market has significant depth — you can find properties in established neighbourhoods with strong infrastructure rather than having to go to secondary locations for affordability.
Best neighbourhoods: Downtown Kitchener, Uptown Waterloo, Doon South. Watch for: Over-improved conversions priced above what the income supports.
4. Hamilton — The Established Favourite
Hamilton has been the darling of Ontario duplex investors for a decade, which has compressed its cap rates relative to newer markets on this list. Achievable cap rates today are 6.5–7.5% — workable but requiring more selective buying than Windsor or Oshawa.
Hamilton's strengths are its diversified economy, excellent transit connectivity to Toronto, strong tenant demand, and a large stock of older housing that lends itself to duplex conversion. McMaster University provides a stable student tenant base. The ongoing revitalization of areas like the North End, Barton Village, and the lower city is creating appreciation tailwinds in addition to rental income.
Best neighbourhoods: Crown Point, Gibson-Landsdale, Stipley. Watch for: Properties priced on hope (speculation on appreciation) rather than income.
5. London — The Underrated University Market
London is often overlooked by Toronto-based investors who don't know it well, which creates buying opportunities. Western University (50,000+ students) and Fanshawe College create structural rental demand, and the city's growing healthcare and tech sectors are diversifying the employment base.
Entry prices in the $520,000–$680,000 range with cap rates of 6–7% make London competitive, particularly in established neighbourhoods near the universities. The key risk is overexposure to student tenants — properties near campus trade at lower cap rates but with higher turnover; properties in family-oriented areas attract more stable long-term tenants at slightly lower rents.
Best neighbourhoods: Old South, Woodfield, Wortley Village. Watch for: Student-only areas with high summer vacancy.
Side-by-Side Comparison
| Market | Cap Rate | Entry Price | Vacancy | Total Cash Needed | Best For |
|---|---|---|---|---|---|
| Windsor | 8–10% | $380K–$550K | 3.1% | ~$110K–$140K | Max cashflow |
| Oshawa | 7–8.5% | $550K–$720K | 2.3% | ~$140K–$180K | GTA proximity |
| Kitchener-Waterloo | 7–8% | $580K–$780K | 2.4% | ~$148K–$198K | Tenant quality |
| Hamilton | 6.5–7.5% | $650K–$900K | 2.6% | ~$163K–$225K | Appreciation |
| London | 6–7% | $520K–$680K | 2.9% | ~$132K–$172K | University demand |
Which Market Is Right for You?
- Maximize cashflow: Windsor or Oshawa
- Best tenant quality + stability: Kitchener-Waterloo
- Best appreciation track record: Hamilton
- Best entry price for remote investor: Windsor or London
- Best for first-time house hacker: Kitchener-Waterloo or Oshawa (employment opportunities + transit)
Don't choose a market based solely on cap rate. Choose based on your situation: where will you manage from? Do you need to be near the property or can you manage remotely? What's your risk tolerance for vacancy? The best market on paper isn't always the best market for you.
Market data estimates based on 2026 information. Not financial advice. Always consult a licensed real estate professional before investing.