Montreal fourplex and multiplex cap rates
Fourplex and multiplex · Montreal, QC · cap rates 4.8% - 6.2% · vacancy 2.1%
Montreal remains a compelling income-market candidate, with better yields offset by Quebec-specific lease and regulatory diligence.
Sources: CMHC Rental Market Survey (October 2024) · Statistics Canada CMA population · Bank of Canada posted rates. Figures are computed estimates — verify before acting.
- Average rent
- $1,168
- CMHC purpose-built · October 2024
- Cap rate range
- 4.8% - 6.2%
- Editorial benchmark
- Price per door
- $190k - $340k
- Editorial benchmark
- CMA population
- 4,597,837
- +0.5% YoY · StatCan 2025
- Vacancy rate
- 2.1%
- CMHC RMS · October 2024
- Rent rules
- High
- High regulation risk
Positive market signal
AssetAvenue analysis
Medium confidence
Montreal screens as a positive 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
90/100Composite signal from demand, vacancy risk, regulation, affordability pressure, and zoning tailwind.
Rent growth confidence
HighHigh investor demand with low vacancy risk.
Supply pipeline risk
LowA higher supply pipeline can pressure rent growth and exit cap assumptions.
Zoning tailwind
LimitedModerate in established plex districts
Investor fit
First-time buyer/investor
Careful fit (70/100)
Needs simpler execution, stronger cash flow, or more lender support.
Developer / advanced investor
Weak fit (44/100)
Only pursue if site-specific zoning evidence improves.
Evidence required
- Rent evidence: compare entered rents against $1,550 - $2,250 and current lease roll.
- Financing evidence: Older plex capex can overwhelm attractive headline yield.
- Operating evidence: underwrite expenses against 34% - 44% and local insurance/tax quotes.
- Policy evidence: High rent-rule exposure. Lease assignments, rent increase rules, and tribunal process should be reviewed before pricing rent lift.
Watchouts
- Rising affordability pressure can limit exit buyers or force more conservative rent assumptions.
- High landlord-regulation risk means rent lift should be priced only after lease review.
- Tight vacancy trend should be monitored before waiving financing or inspection conditions.
- Model transfer duties, notary costs, financing fees, and a reserve for lease/legal review.
Allocation note: Montreal 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
Plateau
$2,050 avg rent · high demand
Best fit: Plex hold
Established low-rise form
Verdun
$1,825 avg rent · high demand
Best fit: Value-add
Selective density
Hochelaga
$1,700 avg rent · medium demand
Best fit: Entry plex
Block-by-block review
Provincial investor rules
- Province
- Quebec
- Rent regulation
- High
Transfer costs: Quebec transfer duties, often called welcome tax
Zoning and open data: Borough or municipal zoning schedules, use classes, heritage overlays, and permit history.
Investor watchouts
- Lease and rent-increase framework
- Older plex systems
- Bilingual documentation and notary workflow
Underwriting benchmarks
- Rent range
- $1,051 – $1,489
- CMHC RMS · October 2024
- Cap rate range
- 4.8% - 6.2%
- Editorial benchmark
- Price per door
- $190k - $340k
- Editorial benchmark
- Vacancy assumption
- 2.1%
- CMHC October 2024
- Expense ratio
- 34% - 44%
- Rent rules
- High
- CMHC 1BR rent
- $1,051
- October 2024
- CMHC 2BR rent
- $1,176
- October 2024
Financing sensitivity: Older plex capex can overwhelm attractive headline yield. Data sourcing: hover any icon above for methodology. Rent and vacancy from CMHC RMS.Remaining benchmarks are editorial estimates. Always confirm with property-level diligence.
Opportunities in Montreal
6 screened deals, ranked by AssetAvenue score.
Montreal underwriting questions
- What cap rate should I expect on a Montreal fourplex?
- Current screen: 4.8% - 6.2%. Editorial benchmark until live listings fill this market. 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 Montreal?
- CMHC purpose-built vacancy is 2.1% as of October 2024. Small multifamily can run tighter or looser than the metro survey.
- What strategies fit Montreal?
- Plex investing, Stabilized multifamily, CMHC/MLI Select, Value-add. Rent rules: High.
- Does AssetAvenue cover Canadian income property in Montreal?
- Yes. This desk underwrites Montreal, QC income property at the qualifying rate, with CMHC and Bank of Canada context where we have it.