Toronto fourplex and multiplex cap rates
Fourplex and multiplex · Toronto, ON · cap rates 1.9% - 2.8% · vacancy 2.5%
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 — 211 active listings · Bank of Canada posted rates. Figures are computed estimates — verify before acting.
- Average rent
- $1,852
- CMHC purpose-built · October 2024
- Cap rate range
- 1.9% - 2.8%
- Live listings · 25–75th %ile
- Price per door
- $500k - $832k
- Live listings · 25–75th %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
Market screen
AssetAvenue analysis
Toronto cap rates screen 3.3% - 4.8%, $425k - $750k per door, with average rent near $2,850 a door. The desk underwrites vacancy at 1.5% - 3% and operating expenses at 30% - 40% of gross rent.
Scores
Location score
72/100Composite of demand, vacancy risk, regulation, affordability pressure, and zoning.
First-time investor score
41/100Debt coverage and cash-on-cash at the market's benchmark leverage, plus landlord-regulation and market risk.
Developer score
56/100Zoning, affordability pressure, and investor demand.
What to verify on a deal here
- Rent: in-place leases against the $2,350 - $3,400 benchmark.
- Financing: a lender term sheet at the contract rate, re-tested at the qualifying rate.
- Operating: expenses against the 30% - 40% 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.
East York
$2,950 avg rent · very high demand
Best fit: Multiplex hold
As-of-right multiplex review
Scarborough
$2,550 avg rent · high demand
Best fit: Suites and family rentals
Transit-node potential
Junction
$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
- 1.9% - 2.8%
- Live listings · 25–75th %ile
- Price per door
- $500k - $832k
- Live listings · 25–75th %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-per-door bands come from the multi-unit listings, with a stated door count, among 211 live Realtor.ca listings. Remaining benchmarks are editorial estimates. Always confirm with property-level diligence.
Signals affecting Toronto
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.
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.
Opportunities in Toronto
211 active listings on Realtor.ca · 6 screened in AssetAvenue
Toronto underwriting questions
- What cap rate should I expect on a Toronto fourplex?
- Current screen: 1.9% - 2.8%. 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 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.