How much rental income can a Calgary basement suite generate?

A legal basement suite in Calgary typically generates $1,200–$1,800 per month in rental income as of 2025–2026, depending on the suite's size, finishes, location, and whether utilities are included. Premium suites in desirable neighbourhoods with separate entrances, in-suite laundry, and modern finishes can push above $2,000 per month.

Location is the biggest factor in rental rates. Suites in inner-city and established neighbourhoods like Killarney, Marda Loop, Altadore, Bridgeland, Kensington, and Hillhurst command the highest rents — typically $1,500–$2,000+ per month — because of walkability, transit access, and proximity to downtown employers. Established suburban communities like Varsity, Brentwood, Lake Bonavista, Canyon Meadows, and Signal Hill typically see rents of $1,300–$1,700 per month. Newer suburban communities farther from the core — Cranston, Panorama Hills, Evanston, Auburn Bay, and Mahogany — generally rent for $1,200–$1,600 per month, with the lower end reflecting the longer commute despite the suites often being newer and larger.

Suite size and features directly impact what you can charge. A one-bedroom suite (500–700 square feet) is the most common configuration and rents at the lower end of the ranges above. A two-bedroom suite (700–1,000+ square feet) commands a significant premium — often $200–$400 more per month — and attracts a wider tenant pool. Key features that increase rental value include a separate entrance (essential for top rents), in-suite laundry (adds $75–$150/month in perceived value), a full kitchen with dishwasher, modern LVP flooring, good natural light from egress windows, dedicated parking, and quality soundproofing between the suite and main floor.

Return on investment is where Calgary basement suites really shine. On a mid-range suite development costing $50,000–$65,000, monthly rental income of $1,400 generates $16,800 per year in gross revenue. After accounting for increased utilities ($150–$250/month), insurance premium increase ($40–$65/month), maintenance reserve ($100–$150/month), and potential vacancy (one month per year), your net annual income is roughly $11,000–$14,000. That represents a payback period of approximately 4–6 years on your investment — significantly better than most home renovations. Calgary's suite development costs are also 10–20% lower than Toronto or Vancouver, making the ROI even more attractive.

Calgary's rental market has tightened considerably since 2023, driven by population growth from interprovincial migration and international immigration. Vacancy rates in Calgary have dropped below 2% in many areas, which means well-maintained legal suites rarely sit empty for long. The demand for affordable rental housing in Calgary continues to grow, making a basement suite one of the smartest investments a Calgary homeowner can make. Browse basement renovation contractors through the Calgary Construction Network directory to get started with quotes on your suite project.