London fourplex and multiplex cap rates
Fourplex and multiplex · London, ON · cap rates 2.8% - 4.4% · vacancy 2.8%
London is useful for student and small-multifamily strategies, but management and licensing drive outcomes.
Sources: CMHC Rental Market Survey (October 2024) · Statistics Canada CMA population · Realtor.ca — 171 active listings · Bank of Canada posted rates. Figures are computed estimates — verify before acting.
- Average rent
- $1,460
- CMHC purpose-built · October 2024
- Cap rate range
- 2.8% - 4.4%
- Live listings · 25–75th %ile
- Price per door
- $216k - $335k
- Live listings · 25–75th %ile
- CMA population
- 633,002
- +1.0% YoY · StatCan 2025
- Vacancy rate
- 2.8%
- CMHC RMS · October 2024
- Rent rules
- High
- Medium regulation risk
Market screen
AssetAvenue analysis
London cap rates screen 4.5% - 5.8%, $210k - $360k per door, with average rent near $1,900 a door. The desk underwrites vacancy at 3.5% - 5% and operating expenses at 34% - 44% of gross rent.
Scores
Location score
68/100Composite of demand, vacancy risk, regulation, affordability pressure, and zoning.
First-time investor score
64/100Debt coverage and cash-on-cash at the market's benchmark leverage, plus landlord-regulation and market risk.
Developer score
43/100Zoning, affordability pressure, and investor demand.
What to verify on a deal here
- Rent: in-place leases against the $1,600 - $2,350 benchmark.
- Financing: a lender term sheet at the contract rate, re-tested at the qualifying rate.
- Operating: expenses against the 34% - 44% ratio, with local insurance and tax quotes.
- Closing: provincial transfer tax, legal, lender, and diligence costs.
Market data
Bedroom rents from CMHC RMS (October 2024). Neighbourhood scores and rents are editorial estimates.
Rent by bedroom type
CMHC purpose-built avg · October 2024
Neighbourhood scores
Editorial market score by area
Neighbourhood rents
Editorial estimate · average rent per unit
Neighbourhood intelligence
The desk's read of each area. Rents are editorial estimates, not survey data.
Old North
$2,100 avg rent · high demand
Best fit: Student rental
Licensing diligence
SoHo
$1,750 avg rent · medium demand
Best fit: Value-add
Block-specific review
Masonville
$2,050 avg rent · medium demand
Best fit: Family and student
Suburban rental demand
Provincial investor rules
- Province
- Ontario
- Rent regulation
- High
Transfer costs: Ontario land transfer tax (a municipal LTT also applies in the City of Toronto)
Zoning and open data: Municipal zoning bylaw, official plan, additional residential unit rules, and transit-oriented policy overlays.
Investor watchouts
- Rent-control treatment by unit age
- Legal duplex/triplex/fourplex status
- Municipal licensing and fire-code compliance
Underwriting benchmarks
- Rent range
- $1,299 – $1,750
- CMHC RMS · October 2024
- Cap rate range
- 2.8% - 4.4%
- Live listings · 25–75th %ile
- Price per door
- $216k - $335k
- Live listings · 25–75th %ile
- Vacancy assumption
- 2.8%
- CMHC October 2024
- Expense ratio
- 34% - 44%
- Rent rules
- High
- CMHC 1BR rent
- $1,299
- October 2024
- CMHC 2BR rent
- $1,541
- October 2024
Financing sensitivity: Room-rent models should be stress tested for turnover. Data sourcing: hover any icon above for methodology. Rent and vacancy from CMHC RMS. Cap rate and price-per-door bands come from the multi-unit listings, with a stated door count, among 171 live Realtor.ca listings. Remaining benchmarks are editorial estimates. Always confirm with property-level diligence.
Signals affecting London
Province of Ontario · Jun 27, 2026
Ontario publishes next year's rent increase guideline
Model two rent tracks: guideline-capped for sitting tenants, market on turnover. A building full of long-term tenants at deep discounts is a duration bet, not a cash-flow deal.
CMHC Rental Market Report · Jun 4, 2026
Vacancy loosens in the biggest markets, stays tight in mid-size cities
In Toronto and Vancouver deals, cap modeled rent growth and lengthen lease-up assumptions. In Ottawa, Winnipeg, and London, current market rents are defensible with comps.
IRCC Levels Plan · May 8, 2026
Federal immigration targets stay reduced through 2027
Student rentals and newcomer-corridor buildings need demand evidence, not extrapolation. Ask for current-year occupancy and pre-leasing, not last cycle's.
Opportunities in London
171 active listings on Realtor.ca · 6 screened in AssetAvenue
London underwriting questions
- What cap rate should I expect on a London fourplex?
- Current screen: 2.8% - 4.4%. The middle half of this market's active multi-unit Realtor.ca listings that state their unit count. A fourplex is conventional financing — MLI Select starts at five units. Confirm NOI from the rent roll; street and condition move the print.
- How tight is vacancy in London?
- CMHC purpose-built vacancy is 2.8% as of October 2024. Small multifamily can run tighter or looser than the metro survey.
- What strategies fit London?
- Student rental, Small multifamily, Family rental. Rent rules: High.
- Does AssetAvenue cover Canadian income property in London?
- Yes. This desk underwrites London, ON income property at the qualifying rate, with CMHC and Bank of Canada context where we have it.