London fourplex and multiplex cap rates
Fourplex and multiplex · London, ON · cap rates 1.7% - 5.2% · 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 — 176 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
- 1.7% - 5.2%
- Live listings · 10–90th %ile
- Price per door
- $210k - $760k
- Live listings · 10–90th %ile
- CMA population
- 633,002
- +1.0% YoY · StatCan 2025
- Vacancy rate
- 2.8%
- CMHC RMS · October 2024
- Rent rules
- High
- Medium regulation risk
Selective market signal
AssetAvenue analysis
Medium confidence
London screens as a selective market for disciplined Canadian real estate investors. The market should be judged by deal-level DSCR, rent evidence, transfer-cost reserve, and provincial operating rules, not by headline demand alone.
Screening signals
Location score
68/100Composite signal from demand, vacancy risk, regulation, affordability pressure, and zoning tailwind.
Rent growth confidence
MediumMedium investor demand with medium vacancy risk.
Supply pipeline risk
LowA higher supply pipeline can pressure rent growth and exit cap assumptions.
Zoning tailwind
LimitedModerate
Investor fit
First-time buyer/investor
Careful fit (64/100)
Needs simpler execution, stronger cash flow, or more lender support.
Developer / advanced investor
Weak fit (43/100)
Only pursue if site-specific zoning evidence improves.
Evidence required
- Rent evidence: compare entered rents against $1,600 - $2,350 and current lease roll.
- Financing evidence: Room-rent models should be stress tested for turnover.
- Operating evidence: underwrite expenses against 34% - 44% and local insurance/tax quotes.
- Policy evidence: High rent-rule exposure. Rent-control exposure, legal-unit status, notices, and LTB timelines should be treated as core diligence.
Watchouts
- Elevated affordability pressure can limit exit buyers or force more conservative rent assumptions.
- Medium landlord-regulation risk means rent lift should be priced only after lease review.
- Balanced vacancy trend should be monitored before waiving financing or inspection conditions.
- Budget a closing-cost reserve for land transfer tax, title insurance, legal, appraisal, and lender fees.
Allocation note: London belongs in the workflow as a market screen, not a blanket buy signal. Advance individual deals only when the property-level memo preserves DSCR, reserve, and evidence discipline.
Market data
CMHC RMS data as of October 2024
Rent by bedroom type
CMHC purpose-built avg · October 2024
Neighbourhood scores
Market score by area
Neighbourhood rents
Average rent per unit by area
Neighbourhood intelligence
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
- 1.7% - 5.2%
- Live listings · 10–90th %ile
- Price per door
- $210k - $760k
- Live listings · 10–90th %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/door computed from 176 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
176 active listings on Realtor.ca · 6 screened in AssetAvenue
London underwriting questions
- What cap rate should I expect on a London fourplex?
- Current screen: 1.7% - 5.2%. From 176 active Realtor.ca listings (10th–90th percentile). 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.