How Much Is My Plex Worth? 3 Valuation Methods
Income approach, comparable sales, and replacement cost: the three ways to value an income property in Quebec. For a multiplex, it's net income that drives value, not the neighbourhood median price.
Income approach · Cap rate · GIM · APCIQ 2026 data
The value of a multiplex in Quebec is estimated using 3 methods: 1) the income approach (value = net operating income ÷ cap rate) — the most widely used for an income property; 2) comparison with recent comparable sales; 3) replacement cost. For a multiplex, net income drives value, not the neighbourhood median price.
You own a multiplex and want to know what it's really worth? The answer depends on which method you use — and for an income property, not all methods are equal. Investors, banks, and serious buyers rely primarily on the income approach, which anchors value in what the property actually generates, not in what the neighbours listed on MLS.
This page explains all three methods in detail — formulas, worked examples, and limitations — so you know exactly what your property is worth before making any decision.
How to value a multiplex: the 3 methods
Each method has its strengths and limitations. For a multiplex in Quebec, the income approach is the most relevant — here is why.
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Income approach (NOI capitalization)
This is the primary method for any income property. It estimates value by dividing the Net Operating Income (NOI) by a capitalization rate (cap rate).
Value = NOI ÷ Cap RateNOI is annual gross income minus all actual operating expenses (municipal and school taxes, insurance, maintenance, management, vacancy allowance) — but before debt service. The cap rate reflects the return investors expect for this type of property in this market.
When to use it: always, for a multiplex or any income property. This is the method used first by investor buyers, institutional lenders, and accredited appraisers.
Limitation: the quality of the result depends on the reliability of reported revenues and the choice of cap rate. A cap rate that is too low inflates the value; understated expenses do the same. Always verify actual income against leases in place.
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Comparable sales method (market comparables)
This method compares your property to recent sales of similar properties in the same area. It analyzes price per unit, price per square foot, or the gross income multiplier (GIM) of comparable transactions to derive a value range.
Value ≈ Gross income × Market GIM | North Shore GIM: 12–14×When to use it: as a complement to the income approach, to validate that your result is consistent with the market. Also useful when income data is incomplete.
Limitation: two identical plexes can be worth very different amounts if their net incomes differ. The comparable sales method ignores this key factor and can lead to significant over- or undervaluation for an income property.
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Replacement cost approach
This method estimates value by calculating what it would cost to reproduce the building new today (construction cost + land value), minus accumulated depreciation (age, condition, functional obsolescence).
Value = (Replacement cost − Depreciation) + Land valueWhen to use it: primarily for new or recently built properties, special-purpose properties without true comparables, or as an additional check. Rarely used alone to value an existing multiplex on the resale market.
Limitation: depreciation is difficult to estimate accurately for an aging property. This method does not account for the actual income potential of the property, making it the least relevant of the three for a residential income property.
Calculating a multiplex's value: a concrete example
A property with $60,000 in annual gross income and $24,000 in operating expenses. Here is what the income approach and the GIM method produce.
At a 4.5% cap rate, value rises to ≈ $800,000. At 5.5%, it falls to ≈ $655,000. The cap rate used depends on the local market and property type.
GIM is a quick approximation. It does not account for the actual expense ratio — two properties with the same gross income but very different expenses will have very different net values.
Both methods converge on a range of $720,000 to $780,000 for this property. The gap is explained by the fact that GIM does not account for the actual expense ratio (40% here). The income approach gives the most reliable result because it uses actual net income. Market data source: APCIQ, April 2026 (North Shore median plex price ≈ $763,500, cap rate 4.5–5.5%, GIM 12–14×).
Why the neighbourhood median price is not enough
The neighbourhood median price (e.g., $763,500 on the Montreal North Shore, APCIQ April 2026) is a useful market reference point, but it does not reflect the specific value of your property. Two identical triplexes on the same street can be worth $650,000 and $820,000 respectively if their net incomes differ — one with below-market rents, the other with updated leases. For an income property, it is NOI ÷ cap rate that sets the value, not the sector median.
The median price is calculated across all transactions in the area, which includes properties with widely varying income profiles. A professional investor buyer will never look at the median without first analyzing the financial statements of the target property. This is why preparing a property income statement with real figures is the essential step before any sale or refinancing.
ImmoMulti's tools let you go further: the cap rate calculator gives you the implied cap rate from the price and NOI, the GIM comparison tool benchmarks your property against the market, and the NOI calculator details your expenses for a precise net income figure. You can also consult the North Shore plex price map and the city-by-city medians (North Shore 2026) to contextualize your property within its sector.
Multiplex valuation: your questions answered
The primary method is the income approach: Value = NOI ÷ Cap Rate. NOI (Net Operating Income) is the difference between annual gross revenues and actual operating expenses (taxes, insurance, maintenance, management, vacancy allowance) — before debt service. The cap rate reflects the return investors expect. On the Montreal North Shore, cap rates generally range from 4.5% to 5.5% based on APCIQ April 2026 data. Use our cap rate calculator and NOI calculator to get your figures quickly.
For an income property, the income approach is the most relevant and most widely used by investors, lenders, and accredited appraisers. It is grounded in the property's actual revenue-generating potential rather than neighbourhood median prices. The GIM method complements the analysis, but cannot replace the income approach for a multiplex because it ignores the actual expense ratio. The cost approach is rarely used alone to value an existing income property.
No. The neighbourhood median price (e.g., $763,500 on the North Shore, APCIQ April 2026) is a useful market reference, but does not reflect your property's specific value. Two identical plexes on the same street can be worth very different amounts if their net incomes differ — one with below-market rents, the other with updated leases. For an income property, it is NOI ÷ cap rate that sets the value, not the sector median. See our North Shore price map to benchmark your property.
NOI (Net Operating Income) is the difference between a property's gross revenues and its annual operating expenses. Operating expenses include municipal and school taxes, insurance, maintenance and repair costs, management fees, and vacancy provisions. Mortgage payments (debt service) are not included in the NOI calculation. Use our NOI calculator to detail your expenses and get a precise net income figure.
For a quick estimate, use the ImmoMulti tools: the cap rate calculator, the GIM comparison tool, and the NOI calculator. You can also receive a direct purchase offer — free and with no obligation — based on your property's actual net income. You will have a concrete figure in less than 48 hours, with no commission. Request your free offer →
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