CRA considers that the related occupant of a principal residence can be charged FMV rent

CRA considers that a house unit can qualify as a principal residence of a taxpayer even where the child of the taxpayer, who is the one residing at the house, is being charged a fair market value rent by the taxpayer (in order to help fund the seniors’ residence fees of the taxpayer).

Neal Armstrong. Summary of 21 January 2016 Quebec CPA Personal Income Tax Roundtable, Q. 10, 2016-0625161C6 Tr under s. 54 - principal residence - (a).