Sherbrooke, Quebec’s sixth-largest city with approximately 175,000 residents, has emerged as one of the province’s most attractive real estate markets for both homebuyers and investors. With prices roughly 45% below Montreal and strong rental demand from over 40,000 university students, Sherbrooke offers a compelling alternative in 2026.
💰 Median Prices in Sherbrooke 2026
🏠 Single-Family
~$350K
+6% YoY
🏢 Condo
~$250K
+4% YoY
🏗️ Plex (2-5 units)
~$420K
+7% YoY
Sherbrooke’s price growth has been steady and sustainable, avoiding the sharp spikes and corrections seen in larger markets. The average days on market is approximately 40 days for single-family homes and 30 days for plexes, indicating healthy demand without the frenzy of a speculative market.
📊 Sherbrooke vs. Montreal: Price Comparison
Montreal
Single-family: ~$625K
Condo: ~$420K
Plex: ~$855K
Plex GRM: 14-18x
Sherbrooke
Single-family: ~$350K
Condo: ~$250K
Plex: ~$420K
Plex GRM: 8-10x
The most striking difference is in plex investment returns. A Sherbrooke duplex at $420K generating $3,500/month in gross rent yields a GRM of 10x—compared to a Montreal duplex at $855K generating $4,000/month (GRM of ~18x). For cash-flow investors, Sherbrooke offers nearly twice the yield per dollar invested.
📍 Key Sectors and Neighbourhoods
Centre-ville
Walkable core, high rental demand, plexes and condos. Close to Université de Sherbrooke downtown campus. Ideal for student rentals.
Jacques-Cartier
Family-friendly, good schools, parks, and services. Median house ~$370K. Quiet residential streets with strong resale value.
Fleurimont
Affordable sector near CHUS hospital. Median house ~$320K. Strong rental demand from healthcare workers. Good entry point for investors.
Lennoxville
Charming English-speaking community, Bishop’s University. Mix of heritage homes and student rentals. Unique village character within the city.
🎓 University Town Effect on Real Estate
💡 With 40,000+ students at Université de Sherbrooke and Bishop’s University, the rental market benefits from consistent annual demand. The September intake drives particularly strong leasing activity each year.
University towns enjoy a built-in rental demand floor. Student renters typically seek 3½ and 4½ apartments within transit distance of campus, which supports landlords with predictable tenancy cycles. Average student-area rents: 3½ at $850-$1,000/month and 4½ at $1,000-$1,300/month.
Sherbrooke’s vacancy rate hovers around 2-3%, well below the 5% balanced-market threshold. The Université de Sherbrooke’s co-op program (the largest in Quebec) also brings working students year-round, unlike purely semester-based universities. This reduces the summer vacancy problem common in other university towns.
🏗️ Plex Investment: GRM and Rental Yields
8-10x
Gross Rent Multiplier (GRM)
5-7%
Estimated cap rate
A typical Sherbrooke triplex at $450K generating $4,200/month in gross rent produces a GRM of 8.9x and an estimated cap rate of 5.5-6%. With a 20% down payment ($90K) and current mortgage rates, cash flow is often positive from month one—unlike Montreal where many plexes require 3-5 years to reach positive cash flow after all expenses.
🏡 Affordability and Outlook
Sherbrooke remains one of Quebec’s most affordable cities for homeownership. A household earning $80,000/year can comfortably afford a $350K home with a 10% down payment, while the same income in Montreal only qualifies for a condo. This affordability gap is attracting remote workers, young families, and retirees from larger urban centres.
Looking ahead, Sherbrooke’s real estate market is expected to grow 4-6% in 2026, supported by the city’s $200M+ investment in infrastructure (new hospital wing, road improvements, public transit expansion). For investors, the window to acquire cash-flowing plexes at sub-10x GRM is narrowing as out-of-town buyers discover Sherbrooke’s fundamentals.
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