How much rental income can I expect from a legal basement suite in Moncton or Fredericton in 2026?

A legal one-bedroom basement suite in Moncton typically rents for $900-$1,300 per month in 2026, while Fredericton suites range from $850-$1,200 per month, depending on size, finishes, location, and whether utilities are included. These figures reflect the strong rental demand that New Brunswick has experienced over the past several years, driven by population growth, interprovincial migration, and limited housing supply in both cities.

In Moncton, rental demand has been particularly strong in neighbourhoods like Dieppe, Riverview, and the downtown core. A well-finished one-bedroom basement suite with its own entrance, a full bathroom, a kitchenette or full kitchen, and in-suite laundry can command the higher end of that range. Two-bedroom basement suites in good locations push $1,200-$1,600 per month. Including utilities (heat, electricity, water, internet) adds perceived value to tenants and typically allows you to charge a premium, though you absorb the cost risk — especially for electric baseboard heat in NB's cold winters, which can run $150-$300 per month from November through March.

In Fredericton, the market is slightly softer than Moncton but still strong, anchored by the University of New Brunswick and St. Thomas University student populations, government workers, and military families near CFB Gagetown. Student-oriented suites near campus may have seasonal vacancy in summer, while professional-quality suites in neighbourhoods like Southside, Skyline Acres, or Hanwell tend to rent year-round.

Building a legal basement suite in NB typically costs $35,000-$55,000 for a mid-range finish that includes a full bathroom, kitchenette, bedroom with egress window, waterproofing, proper insulation, and all code-required elements. At $1,100 per month in rent, your gross annual income is $13,200, meaning you could recoup your investment in roughly 3-4 years before accounting for expenses. That is a strong return compared to most home improvement projects.

To be a legal secondary suite in New Brunswick, your basement apartment must meet several code requirements. You need proper fire separation between the suite and the main dwelling — typically a 45-minute fire-rated assembly using 5/8-inch Type X drywall on ceilings and shared walls. The suite mut have its own egress (separate entrance or code-compliant egress windows in bedrooms), smoke and carbon monoxide detectors, and meet all electrical and plumbing code requirements. A building permit is required, and inspections will cover framing, insulation, electrical and plumbing rough-in, fire separation, and final.

Moncton and Fredericton both have zoning regulations governing secondary suites. Check with your municipal planning department before starting — some zones allow secondary suites as-of-right, while others require a variance or conditional use approval. The permit process in both cities typically takes 1-3 weeks for the building permit itself, but zoning approval (if needed) can add additional time.

One important financial consideration: waterproofing must be addressed before finishing. NB's Maritime climate, spring thaw flooding, and high humidity mean a wet basement will destroy your investment. Budget an additional $3,000-$8,000 for interior waterproofing or $8,000-$20,000 for exterior waterproofing if your basement has any history of moisture. Protecting a rental suite from water damage is non-negotiable — a single flooding event can cost you thousands in repairs and lost rental income.

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Looking for experienced contractors? The New Brunswick Construction Network connects homeowners with qualified professionals:

• Gionetterenovations
• Thirty Four Renovations