Best Cities to Buy an Airbnb in Canada: 8 Profitable Markets

Prospective investors looking to tap into Canada’s short-term rental (STR) market have some tough decisions to make, not least of which being which cities offer the best Airbnb markets. 

Canada has several hot spots where short-term rentals fill up fast and bring in serious cash. From the growing appeal of Kelowna’s economy and tourism industry to Montreal's lively streets and unique culture, these places attract tons of visitors year-round.

Take a look at where you should focus your Airbnb investment search for the best returns.

Top Canadian Cities for Airbnb Profits

• Kelowna brings in more than $26,000 per year on average, with summer bookings popping off in July
• Airbnbs in Whistler earn hosts $400 per night on average, jumping way up during ski season
• Banff and Canmore fill up 80% of the time in peak seasons, with guests willing to pay premium rates
• Montreal offers steady summer bookings from June through September, with more affordable property prices
• Prince Edward County attracts up to 650,000 visitors each year who pay top dollar for unique stays

Best Cities to Buy an Airbnb in Canada

Want to make serious money with an Airbnb in Canada? Focus on cities like Kelowna, Banff, Canmore, Whistler, Montreal, and Prince Edward County.

These places bring in visitors year after year who are willing to pay good money for nice places to stay. In many cases, they’re even repeat travellers.

Each city offers something different in terms of price, property types, and the kinds of guests you'll host.

Kelowna, British Columbia

Kelowna is one of the best places to buy an Airbnb in Canada, and the numbers prove it.

Properties here earn $26,000 to more than $40,000 per year. In July, rates jump when tourists flood in for summer fun. With nearly 2,000 Airbnb listings already operating, this is quite the destination.

Buyers will discover a highly competitive and increasingly expensive real estate market here. Kelowna’s single-family homes average just over $1 million, with typical houses listing from $600,000 to more than $5 million. Condos in Kelowna regularly top $3 million, but most are priced from the mid-$200s to $1 million.

Bookings stay at 60% occupancy year-round, hitting over 70% when Kelowna’s summer offerings are on full display. That means your property shouldn’t have to sit empty for long stretches.

With strong rental demand, there's still room to get in before it's oversaturated. If you're looking for a place with solid returns and growth potential, Kelowna deserves a spot at the top of your list.

But be aware: British Columbia only permits short-term rentals in primary residences, and Kelowna has additional short-term rental rules.

Banff & Canmore, Alberta

Banff and Canmore make perfect sense for Airbnb investments. These small towns sit right next to Banff National Park, where several million tourists visit every year.

People pay around $300 per night to stay in Canmore, while Banff’s average rate is closer to $380. That adds up fast.

In summer, properties stay booked about 80% of the time. That means very few empty nights cutting into your profits.

Just know that the rules here focus on protecting the environment and preventing overtourism. You'll need to follow local regulations closely and stay up to date on any changes that might come.

With year-round outdoor activities and that postcard-perfect mountain scenery, guests keep coming back. That makes Banff and Canmore solid bets for anyone looking to make money with an Airbnb.

Whistler, British Columbia

Whistler is another highly profitable Airbnb spot in Canada—and one of the best places in British Columbia for vacation home investments. The numbers here will make your jaw drop.

Hosts charge an average of $400 per night. When ski season hits in late November, that shoots up closer to $650–$700. Properties stay booked around 60% of the time throughout the year, but that jumps to over 80% in January and February during peak ski season.

The average Whistler Airbnb brings in around $42,000–$44,000 per year. Yes, competition exists with over 4,000 active listings, but there are still enough opportunities to go around.

If you’re able to afford the higher entry price, Whistler can deliver some of the biggest returns in the country.

Montreal, Quebec

Montreal keeps Airbnbs booked year-round thanks to its captivating culture and non-stop events. The city draws millions of tourists who need places to stay.

To run an Airbnb here, you'll need to get a registration number and a certificate through the CITQ for rentals shorter than 31 days. Worth the hassle, though!

The best neighbourhoods for Airbnb investments include the Plateau-Mont-Royal and Old Montreal. Guests love staying in these areas for the restaurants, shops, and historic sites all within walking distance.

Another big advantage: property prices here cost less than in other major Canadian cities. That means you can get started with less money up front while still earning solid returns.

Prince Edward County, Ontario

Prince Edward County offers something different for Airbnb investors. This rural area attracts hundreds of thousands of visitors year after year who come for wineries that compete with vineyards in the Okanagan Valley, beaches, and small-town charm.

Properties here stay booked about 50% of the time, with daily rates around $300–$325. In summer, rates jump when the area gets busiest, and average annual revenue is about $27,000.

You'll need a business license to operate legally, but the process isn't complicated.

Guests specifically look for unique, charming accommodations here, not cookie-cutter hotel rooms. That means you can charge premium rates for properties with eye-catching character and still keep them booked.

These numbers look amazing for a rural area. It's no wonder Prince Edward County ranks among the top Airbnb markets in Canada.

Up-and-Coming Airbnb Markets in Canada

Big-name destinations aren't the only places to make short-term rental money. Emerging markets like Edmonton, Ottawa, and Vernon—one of the best places to live in the Okanagan Valley—offer lower buy-in costs with growing returns.

Get in early while prices remain reasonable and watch your investment grow.

Edmonton, Alberta

Edmonton can offer some magical opportunities for new investors in Airbnbs (and Canadian Airbnb alternatives). Property prices won't break the bank, and demand keeps growing.

The West Edmonton Mall—one of North America's largest shopping centers—draws visitors all year long. This keeps a steady stream of potential guests coming through.

Starting an Airbnb here feels refreshingly simple compared to other parts of Canada. The rules focus on basic registration and safety requirements without overwhelming red tape.

Tourism numbers continue to climb year after year. More visitors mean more potential bookings for you.

For anyone looking to start with a lower-priced property while still making good returns, Edmonton stands out as one of the smartest choices in Canada right now.

Ottawa, Ontario

Ottawa welcomed nearly 10 million tourists in 2024. That's a LOT of people needing places to stay. The city's history and national landmarks keep tourists coming year-round, not just during certain seasons.

Getting started here doesn't involve jumping through endless hoops. Yes, you need a license, but the process is pretty straightforward.

Airbnbs in Ottawa earn around $25,000 per year on average. Not the highest in Canada by any means, but very solid returns, especially considering the reasonable entry prices.

Different neighbourhoods attract different types of guests—from business travellers to tourists and everything in between. This diversity helps keep occupancy rates at about 60%.

Ottawa might not grab headlines like some tourist hotspots, but the numbers show it delivers reliable returns for Airbnb investors.

Vernon, British Columbia

Vernon is in the Okanagan Valley near Kelowna, but it costs less to buy a home there. Smart investors are taking notice of Vernon’s homes, which average around $700,000.

This small city offers big attractions. Okanagan Lake provides summer fun, while Silver Star Mountain Resort, one of the best Okanagan Valley ski resorts, brings winter sports enthusiasts. This keeps bookings coming year-round.

Daily rates stay competitive with larger markets, and occupancy continues to grow each year as more tourists discover the area.

Getting licensed here won't cause headaches. The local government has created a simple registration process for short-term rental owners.

As Vernon continues growing in popularity, early investors stand to benefit the most. Getting in now before prices catch up to nearby Kelowna could mean bigger returns down the road.

What Makes a City Good for Airbnb Profits?

Look for cities in Canada where people pay high daily rates and properties stay booked most of the time. Pulling off this coveted combo can mean steady income for you.

Places like Whistler charge around $400 per night, and on average, 60% of nights are booked. That's the sweet spot you want to replicate elsewhere.

Find cities with lots to do nearby. The more attractions, the more guests you'll likely get. The more appealing the city, the easier it will be to advertise your rental property.

That said, it’s worth it to ensure the city allows short-term rentals without major headaches. Some places make getting a license simple, while others impose restrictions that cut into profits. In some cities, you can only rent out your primary residence (or a suite on the same lot), not an investment property.

The best spots have tons of tourists but not too many rentals competing with yours.

Check These Things Before You Buy

Even if you think you’ve found a gem, don't rush into buying an Airbnb property. Always do your homework first.

Start by looking up how often properties stay booked in the area and how much they make each month. Use tools like Airdna to find these numbers. This tells you right away if a property might be worth the investment.

Check the local rules too. Some cities require business licenses or have strict zoning laws that could stop you from operating. And while Canada’s tax rules for short-term rentals are fairly uniform, local taxes and fees can vary and take significant chunks out of your profits.

See how many other Airbnbs already exist in the area. Too many similar listings nearby might cause you to struggle to stand out in the crowd.

Look at whether the area gets visitors year-round or just during certain seasons. Seasonal spots can make good money but might sit empty for months.

Pick Your Spot Carefully

Finding the right city for your Airbnb investment makes all the difference. Choose right, and you’ll be counting your profits. Choose wrong, and you’ll be counting headaches. The top cities offer that magic mix of strong demand and great attractions that keep properties booked.

Do your homework on local rules and competition before buying. The right property in the right location can become a serious money-maker that works for you year after year.

Your perfect Airbnb investment is out there—now you know exactly where to look.