What cap rate should I expect on a Toronto fourplex?

Current screen: 0.8% - 1.4%. From 3 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 Toronto?

CMHC purpose-built vacancy is 2.5% as of October 2024. Small multifamily can run tighter or looser than the metro survey.

Does AssetAvenue cover Canadian income property in Toronto?

Yes. This desk underwrites Toronto, ON income property at the qualifying rate, with CMHC and Bank of Canada context where we have it.

Toronto fourplex and multiplex cap rates

Fourplex and multiplex · Toronto, ON · cap rates 0.8% - 1.4% · vacancy 2.5%

Market72

Toronto has unmatched rental depth but income yields are thin and diligence must focus on carry, policy, and execution.

Sources: CMHC Rental Market Survey (October 2024) · Statistics Canada CMA population · Realtor.ca — 3 active listings · Bank of Canada posted rates. Figures are computed estimates — verify before acting.

Multiplex conversionLong-term holdGentle densityPremium rental

Open the map Open Toronto deals Toronto planning applications MLI Select requirements Fourplex vs 5-unit

Average rent: $1,852; CMHC purpose-built · October 2024
Cap rate range: 0.8% - 1.4%; Live listings · 10–90th %ile
Price per door: $899k - $1.52M; Live listings · 10–90th %ile
CMA population: 7,108,874; 0.0% YoY · StatCan 2025
Vacancy rate: 2.5%; CMHC RMS · October 2024
Rent rules: High; High regulation risk

Selective market signal

AssetAvenue analysis

Medium confidence

Toronto 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.

Selective

Screening signals

Location score

72/100

Composite signal from demand, vacancy risk, regulation, affordability pressure, and zoning tailwind.

Rent growth confidence

High

Very high investor demand with low vacancy risk.

Supply pipeline risk

Medium

A higher supply pipeline can pressure rent growth and exit cap assumptions.

Zoning tailwind

Limited

Improving through multiplex and transit policy

Investor fit

First-time buyer/investor

Probably too complex (41/100)

Needs simpler execution, stronger cash flow, or more lender support.

Developer / advanced investor

Weak fit (56/100)

Only pursue if site-specific zoning evidence improves.

Evidence required

Rent evidence: compare entered rents against $2,350 - $3,400 and current lease roll.
Financing evidence: High basis means small rate changes can flip cash flow negative.
Operating evidence: underwrite expenses against 30% - 40% 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

Severe 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.
Structurally tight 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: Toronto 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

East York

Market76

$2,950 avg rent · very high demand

Best fit: Multiplex hold

As-of-right multiplex review

Scarborough

Market73

$2,550 avg rent · high demand

Best fit: Suites and family rentals

Transit-node potential

Junction

Market74

$3,050 avg rent · high demand

Best fit: Premium small multifamily

Selective infill

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: $1,715 – $2,185; CMHC RMS · October 2024
Cap rate range: 0.8% - 1.4%; Live listings · 10–90th %ile
Price per door: $899k - $1.52M; Live listings · 10–90th %ile
Vacancy assumption: 2.5%; CMHC October 2024
Expense ratio: 30% - 40%
Rent rules: High
CMHC 1BR rent: $1,715; October 2024
CMHC 2BR rent: $1,972; October 2024

Financing sensitivity: High basis means small rate changes can flip cash flow negative. Data sourcing: hover any icon above for methodology. Rent and vacancy from CMHC RMS. Cap rate and price/door computed from 3 live Realtor.ca listings.Remaining benchmarks are editorial estimates. Always confirm with property-level diligence.

Signals affecting Toronto

All news

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.

Neutral

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.

Watchful

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.

Negative

City of Toronto · Apr 30, 2026

Toronto expands multiplex permissions and cuts parking minimums

Pay for income in place, not for intensification optionality that every neighbouring lot now shares. Optionality only has value where you can execute faster or cheaper than the street.

Positive

Opportunities in Toronto

3 active listings on Realtor.ca · 6 screened in AssetAvenue

76 GREENDALE AVENUE · Fourplex

76 GREENDALE AVENUE

Price

$790,000

Units

Cap rate

6.8%

DSCR

1.17x

Rents are estimates — the income score carries a haircut until the rent roll is verified

AssetAvenue Score63/100

Worth reviewing · medium risk

Zoning Verify zoningCMHC fit 20/100Closing reserve $35,550Rent rules High

Why 63: Rents are estimates — the income score carries a haircut until the rent roll is verified

832 DAVENPORT ROAD · Triplex

832 DAVENPORT ROAD

Price

$899,000

Units

Cap rate

6.9%

DSCR

1.19x

Rents are estimates — the income score carries a haircut until the rent roll is verified

AssetAvenue Score62/100

Worth reviewing · medium risk

Zoning Verify zoningCMHC fit 20/100Closing reserve $39,910Rent rules High

Why 62: Rents are estimates — the income score carries a haircut until the rent roll is verified

183 GLEBEMOUNT AVENUE · Duplex

183 GLEBEMOUNT AVENUE

Price

$698,000

Units

Cap rate

5.9%

DSCR

1.02x

Rents are estimates — the income score carries a haircut until the rent roll is verified

AssetAvenue Score55/100

Needs diligence · high risk

Zoning Verify zoningCMHC fit 5/100Closing reserve $31,870Rent rules High

Why 55: Rents are estimates — the income score carries a haircut until the rent roll is verified

256 KEELE STREET · Fourplex

256 KEELE STREET

Price

$1,449,000

Units

Cap rate

5.7%

DSCR

0.98x

Rents are estimates — the income score carries a haircut until the rent roll is verified

AssetAvenue Score54/100

Needs diligence · high risk

Zoning Verify zoningCMHC fit 5/100Closing reserve $64,104Rent rules High

Why 54: Rents are estimates — the income score carries a haircut until the rent roll is verified

1895 DAVENPORT ROAD · Duplex

1895 DAVENPORT ROAD

Price

$748,800

Units

Cap rate

5.5%

DSCR

0.95x

Rents are estimates — the income score carries a haircut until the rent roll is verified

AssetAvenue Score52/100

Needs diligence · high risk

Zoning Verify zoningCMHC fit 5/100Closing reserve $33,902Rent rules High

Why 52: Rents are estimates — the income score carries a haircut until the rent roll is verified

1261 ST.CLAIR AVENUE W · Multi-family

1261 ST.CLAIR AVENUE W

Price

$895,000

Units (est.)

Cap rate

4.5%

DSCR

0.78x

Rents are estimates — the income score carries a haircut until the rent roll is verified

AssetAvenue Score48/100

Needs diligence · high risk

Zoning Verify zoningCMHC fit 5/100Closing reserve $39,750Rent rules High

Why 48: Rents are estimates — the income score carries a haircut until the rent roll is verified

Open Deal Room

Toronto underwriting questions

What cap rate should I expect on a Toronto fourplex?: Current screen: 0.8% - 1.4%. From 3 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 Toronto?: CMHC purpose-built vacancy is 2.5% as of October 2024. Small multifamily can run tighter or looser than the metro survey.
What strategies fit Toronto?: Multiplex conversion, Long-term hold, Gentle density, Premium rental. Rent rules: High.
Does AssetAvenue cover Canadian income property in Toronto?: Yes. This desk underwrites Toronto, ON income property at the qualifying rate, with CMHC and Bank of Canada context where we have it.