New Purpose-built Rental Housing Incentive

The Purpose-built Rental Housing Program helps address key barriers to rental housing development in Niagara.

The program aims to incentivize market, attainable and affordable purpose-built rental housing within provincially defined affordability brackets updated annually.

Approved projects must keep units as rentals and keep the approved level of affordability for at least 25 years.

2026 application intake

Applications are currently closed.

The 2026 intake window is May 1 to July 1. Only complete applications submitted during this period will be considered.

The program includes:

Tax increment grant
- Up to 80 per cent for up to 10 years
- For affordable, attainable and market rental units up to 170 per cent of average market rent
- Total annual program budget: $10 million
Regional development charges exemption (not available for the 2026 intake period)
- For attainable units between 101 and 125 per cent of average market rent
$15,000 per-door grant
- For affordable rental units under 100 per cent of average market rent
- Total annual program budget: $750,000
Competitive capital funding (requires submission of a business case)
- For deeply affordable rental units under 100 per cent of average market rent
- Priority will be given to proposals that offer rents below 100 per cent of average market rent and affordability terms longer than the 25-year minimum
- Total annual program budget: $2.5 million

Eligibility

Before submitting an application, confirm you meet the following eligibility criteria:

The development is located within the Niagara region
A building permit has not been obtained for the development
The development is 100 per cent purpose-built rental
The development has at least 20 units
All units will be rented below 170 per cent of average market rent
Units will be rented at the approved depth of affordability for at least 25 years

To maintain eligibility, approved projects must remain in compliance for at least 25 years. During this period, annual reviews will be conducted to verify that all rental units continue to meet the agreed-upon affordability thresholds.

As part of the annual review process, project owners will be required to submit a detailed unit listing, including unit numbers and actual rents charged. If a project is found to be non-compliant, the Region reserves the right to reclaim all or part of the incentive funding provided.

Application documents

Completed and signed application form
Project pro forma (sources and uses, 25-year or longer cash flow)
Rent schedule by unit type and affordability tier
Site plan and drawings (latest set)
Planning approvals / status letters
Construction budget and schedule
Partnership, memorandum of understanding or joint venture agreements (if applicable)
Evidence supporting the income limit methodology (for affordable units)
Any existing agreements with municipal, federal or provincial funders

Average market rent limits (2025)

Affordable

City / town	Per cent of affordable rent	Studio	1 bedroom	2 bedroom	3+ bedroom
Fort Erie	100%	$1,005	$942	$1,068	$1,530
Grimsby	100%	$1,005	$1,028	$1,473	$1,530
Lincoln	100%	$1,005	$1,242	$1,026	$1,530
Niagara Falls	100%	$1,005	$1,203	$1,395	$1,438
Niagara-on-the-Lake	100%	$1,005	$1,242	$1,473	$1,530
Pelham	100%	$1,005	$1,242	$1,473	$1,530
Port Colborne	100%	$1,005	$1,083	$1,244	$1,480
St. Catharines	100%	$996	$1,363	$1,599	$1,660
Thorold	100%	$1,005	$1,000	$1,473	$1,530
Wainfleet	100%	$1,005	$1,242	$1,473	$1,530
Welland	100%	$1,135	$1,088	$1,465	$1,228
West Lincoln	100%	$1,005	$1,242	$1,473	$1,530

Affordable rents are from the Affordable Residential Units bulletin (July 15, 2025).

As of Aug. 29, 2025, affordable rent is the lesser of average market rent or income-based affordable rent (30 per cent of gross household income at the 60th percentile renter household).

Attainable

City / town	Per cent of affordable rent	Studio	1 bedroom	2 bedroom	3+ bedroom
Fort Erie	125%	$1,256	$1,178	$1,335	$1,913
Grimsby	125%	$1,256	$1,285	$1,841	$1,913
Lincoln	125%	$1,256	$1,553	$1,283	$1,913
Niagara Falls	125%	$1,256	$1,504	$1,744	$1,798
Niagara-on-the-Lake	125%	$1,256	$1,553	$1,841	$1,913
Pelham	125%	$1,256	$1,553	$1,841	$1,913
Port Colborne	125%	$1,256	$1,354	$1,555	$1,850
St. Catharines	125%	$1,245	$1,704	$1,999	$2,075
Thorold	125%	$1,256	$1,250	$1,841	$1,913
Wainfleet	125%	$1,256	$1,553	$1,841	$1,913
Welland	125%	$1,419	$1,360	$1,831	$1,535
West Lincoln	125%	$1,256	$1,553	$1,841	$1,913

Market

City / town	Per cent of affordable rent	Studio	1 bedroom	2 bedroom	3+ bedroom
Fort Erie	170%	$1,709	$1,601	$1,816	$2,601
Grimsby	170%	$1,709	$1,748	$2,504	$2,601
Lincoln	170%	$1,709	$2,111	$1,744	$2,601
Niagara Falls	170%	$1,709	$2,045	$2,372	$2,445
Niagara-on-the-Lake	170%	$1,709	$2,111	$2,504	$2,601
Pelham	170%	$1,709	$2,111	$2,504	$2,601
Port Colborne	170%	$1,709	$1,841	$2,115	$2,516
St. Catharines	170%	$1,693	$2,317	$2,718	$2,822
Thorold	170%	$1,709	$1,700	$2,504	$2,601
Wainfleet	170%	$1,709	$2,111	$2,504	$2,601
Welland	170%	$1,930	$1,850	$2,491	$2,088
West Lincoln	170%	$1,709	$2,111	$2,504	$2,601

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