A legal basement suite in Calgary can earn roughly $1,200–$2,000+ per month in rent, depending on size, location and finish — making it one of the strongest returns in the home. Here's what you can earn and what it takes.
Calgary’s Rental Market Makes Suite Development Attractive
Calgary’s rental vacancy rate has been under 2% for the past two years. Basement suite rents have risen significantly. Here’s what you can realistically earn — and what it takes to get there.
Average Basement Suite Rents in Calgary (2026)
| Suite Type | Monthly Rent |
|---|---|
| Bachelor/Studio (400–550 sq ft) | $1,100–$1,500 |
| 1-Bedroom (550–700 sq ft) | $1,400–$1,900 |
| 2-Bedroom (700–1,000 sq ft) | $1,800–$2,500 |
| Luxury 2-Bedroom (1,000+ sq ft, premium finishes) | $2,400–$3,200 |
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⚠ Estimate Disclaimer: These are only ROUGH estimates that can vary wildly. Do not take these numbers as gospel. Having a defined scope of work and exact selections will give you clarity.
Legal vs Illegal Suite: The Income Difference
Legal suites typically command $200–$400/month more than equivalent illegal (unpermitted) suites — better tenants, ability to advertise openly, no risk of bylaw enforcement forcing closure.
ROI Calculation: Does Suite Development Pay?
Example: 2-Bedroom Legal Suite
- Suite development cost: $85,000
- Monthly rent: $2,100
- Annual gross income: $25,200
- Expenses (5% vacancy, $3,000 maintenance, $200/mo utilities included): ~$8,000/yr
- Net annual income: ~$17,200
- Gross yield: ~20%/year on investment
- Simple payback: ~5 years
That’s a very strong return — on top of the $80,000–$120,000 in added property value from having a legal suite.
Legal Suite Requirements in Calgary
- Development permit from City of Calgary
- Separate entrance (private, from exterior)
- Egress windows in each bedroom
- Interconnected smoke alarms on all levels
- CO detector near sleeping area
- Fire separation between suite and main home (Type X drywall)
- Self-closing fire-rated connecting door (if any)
- Minimum ceiling height 6’11”
- Separate utilities or sub-metered (recommended)
Neighbourhoods with Highest Suite Rental Demand
- Inner-city (Inglewood, Killarney, Capitol Hill, Ramsay, Hillhurst)
- Near university/SAIT: Banff Trail, Montgomery, Varsity
- Near hospitals: Shaganappi, Rosscarrock, South Calgary
- Transit corridors: anywhere near C-Train stations
Managing the Suite: Things to Consider
- Screening tenants thoroughly saves enormous hassle
- Alberta Residential Tenancies Act governs landlord-tenant relations
- Get landlord insurance (different from standard home insurance)
- Keep 5–10% of annual rent in a maintenance reserve
- Hire a property manager (10% of rent) if you don’t want to self-manage
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Frequently asked questions
Typically $1,200–$2,000+ per month, depending on size, location and finishes.
To rent safely and protect your insurance and resale, a legal, permitted suite is strongly recommended.
A full legal basement suite in Calgary is typically $180,000–$250,000.
Yes — steady rental income plus added resale value make it one of the best-return projects.
Related reading: legal basement suites, basement suite value, and secondary suite guide