Minimum and Maximum Geared-to-Income Rent (H-26-02)

Date: July 1, 2026

• 1 (a) – Local Housing Corporation
• 2 (a) and 2 (b) – Rent Supplement Programs
• 6 (a) – Non-Profit Program
• 6 (b) – Non-Profit Co-Op Program

Directives archived and replaced with this directive

Directive H-24-02: Application of Minimum and Maximum Geared-to-Income Rent

Background

The Housing Services Act, 2011 (HSA) sets the minimum unit rent that households receiving Rent-Geared=-to-Income (RGI) assistance must pay, as prescribed in Ontario Regulation 316/19, section 2(2) to 2(8).

The minimum rent is indexed each year on July 1, based on the Ontario guideline increase. For households that were paying less than $129 (the minimum rent effective July 1, 2020), a transitional minimum rent is calculated annually until it is equal to or greater than the indexed amount.

Purpose

This Directive communicates the indexed and transitional minimum rents for July 1, 2026 to June 30, 2027, and explains which minimum rent to use when calculating a household’s RGI payment.

Action to be taken to take (effective July 1, 2026):

Minimum geared-to-income rent payable

1. After calculating the RGI payment for the household, compare it to the minimum/maximum unit rent to ensure it is not below the minimum rent or above the maximum rent.
2. The indexed minimum rent for July 1, 2026 to June 30, 2027 is $145.
   
   • The indexed minimum rent is calculated as follows: the 2026 provincial guideline increase is 2.1% (2.1 ÷ 100 + 1 = 1.021). Multiply the minimum rent as of June 30, 2026 by 1.021: $142 × 1.021 = $144.982, rounded to the nearest dollar ($145).
3. The “transitional minimum rent” for the period of July 1, 2026 to June 30, 2027 is $141.
   
   • “Transitional minimum rent” is calculated by adding $8 to the transitional minimum rent amount as of June 30, 2026 of $133. Transitional minimum rent from July 1, 2026 to June 30, 2027 is calculated as $8 + $133 = $141.
   • The transitional minimum rent increases by $8 on July 1st of each year until it is equivalent to the indexed minimum rent.
   • If the RGI payment is higher than the transitional amount, but lower than the indexed minimum rent, the actual RGI payment will be charged. Rent will continue to be compared to the transitional amount until the household’s RGI calculation is equal to or greater than the indexed minimum rent.
   • The “transitional minimum rent” is no longer used for an RGI household if the RGI payment for the household is calculated at more than the “indexed minimum rent”. For example, if a household’s RGI payment is calculated at above $142 for the period of July 1, 2026 to June 30, 2027, future RGI payments will always follow the “indexed minimum rent”, even if the RGI payment later decreases.
4. Determine which minimum rent applies to the household:
   
   1. Use the “indexed minimum rent” for all new tenants and current tenants whose RGI payment was equal to or higher than $129 on July 1, 2020.
   2. Use the “transitional minimum rent” calculation if all the following criteria are met:
      
      1. The household was receiving RGI assistance on July 1, 2020;
      2. Immediately prior to July 1, 2020, the household’s geared-to-income rent payable was less than $129; and
      3. The household’s geared-to-income rent payable for July 1, 2026 to June 30, 2027 is less than the indexed minimum rent of $145.
   3. Despite the criteria listed in a) or b), use the applicable Ontario Works or Ontario Disability rent scale to determine minimum rents for single benefit unit households (one-person households) whose income does not exceed the monthly non-benefit income limit.
      
      • Minimum rent for an ODSP benefit unit of one is $109
      • Minimum rent for an OW benefit unit of one is $85
5. Minimum rent charges apply to the household, not to individual family members.
6. Increases in minimum rents occur effective July 1st of each year but are not automatically applied at that time. Tenants at minimum rent will have their RGI adjusted to the new minimum rent amount at the first RGI review conducted on or after July 1st – which is normally the next annual review.
7. Utility allowances and charges cannot raise the RGI payment above the maximum rent or lower it below the minimum rent.
8. Any additional charges (e.g., parking or air conditioning) are added to the indexed or transitional minimum rent.

Maximum geared-to-income rent payable

Maximum rent is the monthly rent that would be payable by a household if the unit were occupied by a household not eligible for rent-geared-to-income that is not receiving RGI assistance (referred to as “Market” rent).

Reference

• Housing Services Act, 2011, section 50 – Amount of geared-to-income rent
• O. Reg. 316/19, section 2 – Geared-to-income rent payable

Jane Hartley
Director, Housing & Social Services Department

The following have received a copy of this Directive:

• Jennifer Campbell, Commissioner, Community Services
• Jenna Morley, City Solicitor, Legislative Services
• Mitchell Grange, Policy Manager, Housing & Social Services
• Housing Programs Administrators, Housing & Social Services
• Jannette Amini, Manager of Legislative Services / Clerk, County of Frontenac

If you have any questions, please contact a Housing Programs Administrator, Housing and Social Services Department.