{"id":808,"date":"2026-08-13T00:20:37","date_gmt":"2026-08-13T04:20:37","guid":{"rendered":"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/"},"modified":"2026-08-13T08:27:24","modified_gmt":"2026-08-13T12:27:24","slug":"multifamily-calculator-how-to-use","status":"publish","type":"post","link":"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/","title":{"rendered":"Multifamily Property Calculator: How to Analyze Apartment Building Deals (2026)"},"content":{"rendered":"<p>The <a href=\"\/multifamily-property-calculator\">multifamily property calculator<\/a> analyzes apartment building deals the way commercial lenders do \u2014 unit-by-unit income, detailed operating expenses, NOI, debt service coverage, and cash-on-cash return. If you are evaluating a duplex, fourplex, or 20-unit building, this calculator runs the full underwriting in under two minutes. No signup required.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<p><span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav>\n<ul class='ez-toc-list ez-toc-list-level-1 ' >\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#What_Does_the_Multifamily_Calculator_Do\" >What Does the Multifamily Calculator Do<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#How_to_Use_the_Multifamily_Calculator_Step_by_Step\" >How to Use the Multifamily Calculator: Step by Step<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Mode_1_Standard_%E2%80%94_Analyze_a_Deal\" >Mode 1: Standard \u2014 Analyze a Deal<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Mode_2_Reverse_%E2%80%94_Find_Maximum_Purchase_Price\" >Mode 2: Reverse \u2014 Find Maximum Purchase Price<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Mode_3_Reverse_%E2%80%94_Find_Required_Rent\" >Mode 3: Reverse \u2014 Find Required Rent<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Worked_Example_1_Memphis_12-Unit_Apartment_%E2%80%94_960000\" >Worked Example 1: Memphis 12-Unit Apartment \u2014 $960,000<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Step_1_Effective_Gross_Income\" >Step 1: Effective Gross Income<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Step_2_Operating_Expenses\" >Step 2: Operating Expenses<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Step_3_NOI_and_Cap_Rate\" >Step 3: NOI and Cap Rate<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Step_4_Cash_Flow_and_Returns\" >Step 4: Cash Flow and Returns<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Worked_Example_2_Austin_4-Plex_%E2%80%94_520000\" >Worked Example 2: Austin 4-Plex \u2014 $520,000<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Income_and_Expenses\" >Income and Expenses<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Cash_Flow\" >Cash Flow<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Key_Multifamily_Metrics_What_to_Target\" >Key Multifamily Metrics: What to Target<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Multifamily_vs_Single-Family_When_to_Scale_Up\" >Multifamily vs Single-Family: When to Scale Up<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#5_Common_Multifamily_Mistakes\" >5 Common Multifamily Mistakes<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#1_Using_SFR_Expense_Ratios_on_Multifamily\" >1. Using SFR Expense Ratios on Multifamily<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#2_Ignoring_CapEx_Reserves\" >2. Ignoring CapEx Reserves<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#3_Trusting_the_Sellers_Pro_Forma\" >3. Trusting the Seller&#8217;s Pro Forma<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#4_Not_Checking_Per-Unit_Comps\" >4. Not Checking Per-Unit Comps<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#5_Using_30-Year_Amortization_for_Commercial_Loans\" >5. Using 30-Year Amortization for Commercial Loans<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a>\n<ul class='ez-toc-list-level-3' >\n<li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#What_is_a_good_cap_rate_for_a_multifamily_property_in_2026\" >What is a good cap rate for a multifamily property in 2026?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#What_expense_ratio_should_I_use_for_a_12-unit_building\" >What expense ratio should I use for a 12-unit building?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#How_is_a_multifamily_property_valued_differently_from_a_single-family\" >How is a multifamily property valued differently from a single-family?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#What_DSCR_do_lenders_require_for_multifamily_loans\" >What DSCR do lenders require for multifamily loans?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Should_I_include_CapEx_reserves_in_my_multifamily_analysis\" >Should I include CapEx reserves in my multifamily analysis?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#What_is_the_50_rule_in_multifamily_real_estate\" >What is the 50% rule in multifamily real estate?<\/a><\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#How_do_I_calculate_price_per_unit_for_a_multifamily_property\" >How do I calculate price per unit for a multifamily property?<\/a><\/li>\n<\/ul>\n<\/li>\n<li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/arvcalc.com\/blog\/multifamily-calculator-how-to-use\/#Related_Calculators_and_Guides\" >Related Calculators and Guides<\/a><\/li>\n<\/ul>\n<\/nav>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_Does_the_Multifamily_Calculator_Do\"><\/span><span class=\"ez-toc-section\" id=\"What_Does_the_Multifamily_Calculator_Do\"><\/span>What Does the Multifamily Calculator Do<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The calculator takes three categories of input and produces the metrics lenders and investors care about:<\/p>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Input<\/th>\n<th>What You Enter<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Income<\/strong><\/td>\n<td>Number of units, rent per unit (or total), other income (laundry, parking, storage), vacancy rate<\/td>\n<\/tr>\n<tr>\n<td><strong>Expenses<\/strong><\/td>\n<td>Property tax, insurance, maintenance, property management, utilities, HOA, CapEx reserves<\/td>\n<\/tr>\n<tr>\n<td><strong>Financing<\/strong><\/td>\n<td>Purchase price, down payment %, interest rate, loan term<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Output<\/th>\n<th>What It Tells You<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>NOI<\/strong><\/td>\n<td>Net Operating Income \u2014 property performance before debt<\/td>\n<\/tr>\n<tr>\n<td><strong>Cap Rate<\/strong><\/td>\n<td>NOI \u00f7 Purchase Price \u2014 unlevered yield<\/td>\n<\/tr>\n<tr>\n<td><strong>DSCR<\/strong><\/td>\n<td>NOI \u00f7 Debt Service \u2014 does it qualify for a loan?<\/td>\n<\/tr>\n<tr>\n<td><strong>Cash-on-Cash<\/strong><\/td>\n<td>Annual cash flow \u00f7 cash invested \u2014 your yield<\/td>\n<\/tr>\n<tr>\n<td><strong>Cash Flow<\/strong><\/td>\n<td>Monthly and annual after all expenses + mortgage<\/td>\n<\/tr>\n<tr>\n<td><strong>Per-Unit Metrics<\/strong><\/td>\n<td>Price\/unit, rent\/unit, expense\/unit \u2014 for comp analysis<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>The per-unit metrics are what separates multifamily analysis from single-family. A 12-unit building at $1.2M is $100K\/unit. If comparable buildings trade at $120K\/unit, you are buying at a discount. The <a href=\"\/multifamily-property-calculator\">multifamily calculator<\/a> surfaces these numbers automatically.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_to_Use_the_Multifamily_Calculator_Step_by_Step\"><\/span><span class=\"ez-toc-section\" id=\"How_to_Use_the_Multifamily_Calculator_Step_by_Step\"><\/span>How to Use the Multifamily Calculator: Step by Step<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Mode_1_Standard_%E2%80%94_Analyze_a_Deal\"><\/span><span class=\"ez-toc-section\" id=\"Mode_1_Standard_%E2%80%94_Analyze_a_Deal\"><\/span>Mode 1: Standard \u2014 Analyze a Deal<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Step 1 \u2014 Enter property details.<\/strong> Purchase price, number of units, and unit mix if applicable. For a uniform building (all 2BR units at the same rent), enter total units and rent per unit. For mixed buildings, enter total gross rent directly.<\/p>\n<p><strong>Step 2 \u2014 Enter income.<\/strong> Monthly rent per unit (or total), plus other income. Set vacancy rate \u2014 5% for Class A in tight markets, 8\u201310% for Class B\/C, 12%+ for value-add with current vacancies. The calculator computes Effective Gross Income (EGI).<\/p>\n<p><strong>Step 3 \u2014 Enter operating expenses.<\/strong> Property tax (annual), insurance, maintenance (most multifamily operators budget 10\u201315% of EGI), property management (8\u201310% for on-site, 5\u20138% for third-party), utilities the owner pays, CapEx reserves (5\u201310% of EGI). Use the <a href=\"\/noi-calculator\">NOI calculator<\/a> if you want to isolate this step.<\/p>\n<p><strong>Step 4 \u2014 Enter financing.<\/strong> Purchase price, down payment percentage (typically 25\u201330% for multifamily), interest rate, and loan term. Commercial multifamily loans often use 25-year amortization with a 5-year or 10-year balloon \u2014 enter the amortization period, not the balloon term.<\/p>\n<p><strong>Step 5 \u2014 Read results.<\/strong> The <a href=\"\/multifamily-property-calculator\">multifamily property calculator<\/a> shows NOI, cap rate, DSCR, cash flow (monthly and annual), cash-on-cash return, and per-unit metrics. It also shows a color-coded tier badge (Excellent \/ Good \/ Average \/ Below Average \/ Poor) based on your cash-on-cash return.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mode_2_Reverse_%E2%80%94_Find_Maximum_Purchase_Price\"><\/span><span class=\"ez-toc-section\" id=\"Mode_2_Reverse_%E2%80%94_Find_Maximum_Purchase_Price\"><\/span>Mode 2: Reverse \u2014 Find Maximum Purchase Price<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You know the rent, you know your target cap rate or cash-on-cash return, and you know expenses. What is the most you should pay? Enter all inputs except purchase price, set your target return, and the calculator works backward to give you the maximum purchase price. Walk into every negotiation knowing your ceiling.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mode_3_Reverse_%E2%80%94_Find_Required_Rent\"><\/span><span class=\"ez-toc-section\" id=\"Mode_3_Reverse_%E2%80%94_Find_Required_Rent\"><\/span>Mode 3: Reverse \u2014 Find Required Rent<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>You have a building under contract and a target return. What rent do you need to hit that target? This mode is especially useful for value-add multifamily \u2014 you are buying at current (below-market) rents and need to know what post-renovation rents must be to justify the purchase price plus rehab budget.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_1_Memphis_12-Unit_Apartment_%E2%80%94_960000\"><\/span><span class=\"ez-toc-section\" id=\"Worked_Example_1_Memphis_12-Unit_Apartment_%E2%80%94_960000\"><\/span>Worked Example 1: Memphis 12-Unit Apartment \u2014 $960,000<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Property:<\/strong> 12-unit apartment building, all 2BR\/1BA units<br \/>\n<strong>Purchase price:<\/strong> $960,000 ($80,000\/unit)<br \/>\n<strong>Down payment:<\/strong> 25% ($240,000)<br \/>\n<strong>Loan:<\/strong> $720,000 at 7.25%, 25-year amortization<br \/>\n<strong>Rent:<\/strong> $950\/unit\/month \u00d7 12 units = $11,400\/month total<br \/>\n<strong>Other income:<\/strong> $200\/month (laundry)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_1_Effective_Gross_Income\"><\/span><span class=\"ez-toc-section\" id=\"Step_1_Effective_Gross_Income\"><\/span>Step 1: Effective Gross Income<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<pre><code>Gross annual rent: $11,400 \u00d7 12 = $136,800\nOther income: $200 \u00d7 12 = $2,400\nGross income: $139,200\nLess vacancy (8%): \u2212$11,136\nEffective Gross Income: $128,064<\/code><\/pre>\n<h3><span class=\"ez-toc-section\" id=\"Step_2_Operating_Expenses\"><\/span><span class=\"ez-toc-section\" id=\"Step_2_Operating_Expenses\"><\/span>Step 2: Operating Expenses<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Expense<\/th>\n<th>Annual<\/th>\n<th>Basis<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Property Tax<\/td>\n<td>$11,520<\/td>\n<td>1.2% of $960K<\/td>\n<\/tr>\n<tr>\n<td>Insurance<\/td>\n<td>$7,200<\/td>\n<td>$600\/unit \u2014 multifamily policy<\/td>\n<\/tr>\n<tr>\n<td>Maintenance<\/td>\n<td>$13,680<\/td>\n<td>10% of gross rent<\/td>\n<\/tr>\n<tr>\n<td>Property Management<\/td>\n<td>$12,806<\/td>\n<td>10% of EGI<\/td>\n<\/tr>\n<tr>\n<td>Utilities (owner-paid)<\/td>\n<td>$6,000<\/td>\n<td>Water\/sewer\/trash \u2014 $500\/mo<\/td>\n<\/tr>\n<tr>\n<td>CapEx Reserves<\/td>\n<td>$6,840<\/td>\n<td>5% of gross rent<\/td>\n<\/tr>\n<tr>\n<td><strong>Total Operating Expenses<\/strong><\/td>\n<td><strong>$58,046<\/strong><\/td>\n<td><strong>45.3% expense ratio<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>A 45% expense ratio is typical for a 12-unit building where the owner pays water\/sewer. For larger buildings (50+ units) with on-site management, expect 50\u201355%. For small multifamily (2\u20134 units) with tenant-paid utilities, expect 35\u201340%. Cross-check your NOI in the <a href=\"\/noi-calculator\">NOI calculator<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_3_NOI_and_Cap_Rate\"><\/span><span class=\"ez-toc-section\" id=\"Step_3_NOI_and_Cap_Rate\"><\/span>Step 3: NOI and Cap Rate<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<pre><code>NOI = $128,064 \u2212 $58,046 = $70,018\nCap Rate = $70,018 \u00f7 $960,000 = 7.3%<\/code><\/pre>\n<p>A 7.3% cap rate on a 12-unit in Memphis is strong \u2014 above the 6\u20137% threshold where most multifamily investors get interested. Compare this to market cap rates using the <a href=\"\/cap-rate-calculator\">cap rate calculator<\/a>. For context on what makes a good cap rate, read the <a href=\"\/blog\/good-cap-rate-rental-property\/\">cap rate guide<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Step_4_Cash_Flow_and_Returns\"><\/span><span class=\"ez-toc-section\" id=\"Step_4_Cash_Flow_and_Returns\"><\/span>Step 4: Cash Flow and Returns<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<pre><code>Monthly P&amp;I: $5,213 (25-year amortization at 7.25%)\nAnnual debt service: $62,556\n\nAnnual cash flow = $70,018 \u2212 $62,556 = $7,462\nMonthly cash flow = $622\n\nTotal cash invested = $240,000 (down) + $28,800 (closing 3%) = $268,800\nCash-on-Cash Return = $7,462 \u00f7 $268,800 = 2.8%\n\nDSCR = $70,018 \u00f7 $62,556 = 1.12<\/code><\/pre>\n<p><strong>Result: 2.8% cash-on-cash, 7.3% cap rate, DSCR 1.12.<\/strong> The property generates positive cash flow ($622\/month) and has a solid cap rate. The DSCR of 1.12 is below the 1.25 threshold most lenders require \u2014 this deal needs either a larger down payment (30% pushes DSCR to 1.30) or a lower interest rate. Run the scenario in the <a href=\"\/multifamily-property-calculator\">multifamily calculator<\/a> and adjust the down payment slider to see the breakpoint.<\/p>\n<p>Check DSCR qualification in the <a href=\"\/dscr-calculator\">DSCR calculator<\/a>. For financing options, see <a href=\"\/blog\/dscr-loans-guide-2026\/\">DSCR loans guide<\/a> and <a href=\"\/blog\/investment-property-interest-rates\/\">investment property interest rates<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Worked_Example_2_Austin_4-Plex_%E2%80%94_520000\"><\/span><span class=\"ez-toc-section\" id=\"Worked_Example_2_Austin_4-Plex_%E2%80%94_520000\"><\/span>Worked Example 2: Austin 4-Plex \u2014 $520,000<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Property:<\/strong> 4-unit building in east Austin<br \/>\n<strong>Purchase price:<\/strong> $520,000 ($130,000\/unit)<br \/>\n<strong>Down payment:<\/strong> 25% ($130,000)<br \/>\n<strong>Loan:<\/strong> $390,000 at 7.0%, 30-year fixed<br \/>\n<strong>Rent:<\/strong> $1,400\/unit\/month \u00d7 4 = $5,600\/month total<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Income_and_Expenses\"><\/span><span class=\"ez-toc-section\" id=\"Income_and_Expenses\"><\/span>Income and Expenses<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<pre><code>Gross annual rent: $67,200\nVacancy (6%): \u2212$4,032\nEGI: $63,168\n\nExpenses:\n  Property tax (2.0%): $10,400\n  Insurance: $4,800 ($1,200\/unit)\n  Maintenance (8%): $5,376\n  PM (9%): $5,685\n  CapEx (5%): $3,360\nTotal expenses: $29,621 (44.2% ratio)\n\nNOI: $33,547\nCap Rate: 6.5%<\/code><\/pre>\n<h3><span class=\"ez-toc-section\" id=\"Cash_Flow\"><\/span><span class=\"ez-toc-section\" id=\"Cash_Flow\"><\/span>Cash Flow<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<pre><code>Monthly P&amp;I: $2,595\nAnnual debt service: $31,140\n\nCash flow: $33,547 \u2212 $31,140 = $2,407\/year ($201\/month)\nDSCR: 1.08\nCoC: $2,407 \u00f7 $145,600 = 1.7%<\/code><\/pre>\n<p><strong>Result: 1.7% CoC, 6.5% cap rate, DSCR 1.08.<\/strong> Thin but positive. The Austin fourplex has higher per-unit costs (insurance, property tax) and a lower rent-to-price ratio than the Memphis 12-unit. This illustrates why per-unit economics matter \u2014 $80K\/unit in Memphis produces better returns than $130K\/unit in Austin at similar rents.<\/p>\n<p>Run both deals side by side in the <a href=\"\/multifamily-property-calculator\">multifamily property calculator<\/a> to compare. For the full investment analysis framework, see <a href=\"\/blog\/how-to-analyze-rental-property-investment\/\">how to analyze rental property<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_Multifamily_Metrics_What_to_Target\"><\/span><span class=\"ez-toc-section\" id=\"Key_Multifamily_Metrics_What_to_Target\"><\/span>Key Multifamily Metrics: What to Target<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Metric<\/th>\n<th>Excellent<\/th>\n<th>Good<\/th>\n<th>Marginal<\/th>\n<th>Avoid<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Cap Rate<\/strong><\/td>\n<td>&gt;8%<\/td>\n<td>6\u20138%<\/td>\n<td>5\u20136%<\/td>\n<td>&lt;5%<\/td>\n<\/tr>\n<tr>\n<td><strong>Cash-on-Cash<\/strong><\/td>\n<td>&gt;10%<\/td>\n<td>6\u201310%<\/td>\n<td>3\u20136%<\/td>\n<td>&lt;3%<\/td>\n<\/tr>\n<tr>\n<td><strong>DSCR<\/strong><\/td>\n<td>&gt;1.40<\/td>\n<td>1.25\u20131.40<\/td>\n<td>1.10\u20131.25<\/td>\n<td>&lt;1.10<\/td>\n<\/tr>\n<tr>\n<td><strong>Expense Ratio<\/strong><\/td>\n<td>&lt;40%<\/td>\n<td>40\u201350%<\/td>\n<td>50\u201355%<\/td>\n<td>&gt;55%<\/td>\n<\/tr>\n<tr>\n<td><strong>Price\/Unit<\/strong><\/td>\n<td>Market-dependent<\/td>\n<td>Below replacement cost<\/td>\n<td>At market<\/td>\n<td>Above comps<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>These benchmarks shift by market and property class. A 6% cap rate in Columbus, Ohio is strong; a 6% cap rate in Manhattan is exceptional. Always compare within the same market and property type. The <a href=\"\/blog\/cap-rate-by-state-best-markets-2026\/\">cap rate by state guide<\/a> provides market-level context.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Multifamily_vs_Single-Family_When_to_Scale_Up\"><\/span><span class=\"ez-toc-section\" id=\"Multifamily_vs_Single-Family_When_to_Scale_Up\"><\/span>Multifamily vs Single-Family: When to Scale Up<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure class=\"wp-block-table\">\n<table>\n<thead>\n<tr>\n<th>Factor<\/th>\n<th>Single-Family (1 unit)<\/th>\n<th>Small Multi (2\u20134)<\/th>\n<th>Commercial Multi (5+)<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Financing<\/strong><\/td>\n<td>Conventional\/DSCR<\/td>\n<td>Conventional\/DSCR<\/td>\n<td>Commercial loan<\/td>\n<\/tr>\n<tr>\n<td><strong>Down Payment<\/strong><\/td>\n<td>20\u201325%<\/td>\n<td>20\u201325%<\/td>\n<td>25\u201335%<\/td>\n<\/tr>\n<tr>\n<td><strong>Valuation<\/strong><\/td>\n<td>Comps-based<\/td>\n<td>Comps or income<\/td>\n<td>Income-based (NOI \u00f7 cap rate)<\/td>\n<\/tr>\n<tr>\n<td><strong>Expense Ratio<\/strong><\/td>\n<td>30\u201340%<\/td>\n<td>35\u201345%<\/td>\n<td>45\u201355%<\/td>\n<\/tr>\n<tr>\n<td><strong>Management<\/strong><\/td>\n<td>Self or PM<\/td>\n<td>PM recommended<\/td>\n<td>PM required<\/td>\n<\/tr>\n<tr>\n<td><strong>Vacancy Impact<\/strong><\/td>\n<td>100% or 0%<\/td>\n<td>25% per unit<\/td>\n<td>8\u201310% per unit<\/td>\n<\/tr>\n<tr>\n<td><strong>Scale Benefit<\/strong><\/td>\n<td>None<\/td>\n<td>Moderate<\/td>\n<td>Significant \u2014 lower cost\/unit<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n<p>The biggest advantage of multifamily: vacancy risk diversification. When your SFR tenant leaves, you lose 100% of income. When one tenant in a 12-unit leaves, you lose 8%. That is why commercial lenders use DSCR \u2014 it captures this risk difference. Calculate your DSCR in the <a href=\"\/dscr-calculator\">DSCR calculator<\/a>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5_Common_Multifamily_Mistakes\"><\/span><span class=\"ez-toc-section\" id=\"5_Common_Multifamily_Mistakes\"><\/span>5 Common Multifamily Mistakes<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Using_SFR_Expense_Ratios_on_Multifamily\"><\/span><span class=\"ez-toc-section\" id=\"1_Using_SFR_Expense_Ratios_on_Multifamily\"><\/span>1. Using SFR Expense Ratios on Multifamily<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why it matters:<\/strong> SFR expense ratios run 30\u201340%. Multifamily runs 45\u201355% because of common area maintenance, higher insurance per building, and owner-paid utilities (water\/sewer\/trash). Underestimating expenses by 10% on a $140K EGI building means $14,000 less NOI \u2014 enough to flip a deal from positive to negative.<\/p>\n<p><strong>Fix:<\/strong> Use 45% as your starting point for 5\u201320 units, 50% for 20\u201350 units. Verify against the T-12 (trailing 12-month) operating statement from the seller.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Ignoring_CapEx_Reserves\"><\/span><span class=\"ez-toc-section\" id=\"2_Ignoring_CapEx_Reserves\"><\/span>2. Ignoring CapEx Reserves<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why it matters:<\/strong> A 12-unit building needs a new roof ($40K\u2013$60K) every 20 years, HVAC units ($3K\u2013$5K each) every 15 years, and parking lot resurfacing ($8K\u2013$15K) every 10 years. If you do not reserve 5\u201310% of gross rent, these costs hit as cash flow emergencies.<\/p>\n<p><strong>Fix:<\/strong> Budget 5% minimum for newer buildings, 8\u201310% for buildings over 30 years old. The <a href=\"\/multifamily-property-calculator\">multifamily calculator<\/a> has a dedicated CapEx field.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Trusting_the_Sellers_Pro_Forma\"><\/span><span class=\"ez-toc-section\" id=\"3_Trusting_the_Sellers_Pro_Forma\"><\/span>3. Trusting the Seller&#8217;s Pro Forma<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why it matters:<\/strong> Sellers present pro forma income (projected rents after improvements) \u2014 not actual income. A building showing $950\/unit on the pro forma may currently collect $800\/unit with 15% vacancy. Your purchase price should reflect actual income, not projections.<\/p>\n<p><strong>Fix:<\/strong> Underwrite based on the T-12 actual operating statement. Use pro forma rents only for your value-add upside calculation. The <a href=\"\/rental-property-calculator\">rental property calculator<\/a> helps model both scenarios.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Not_Checking_Per-Unit_Comps\"><\/span><span class=\"ez-toc-section\" id=\"4_Not_Checking_Per-Unit_Comps\"><\/span>4. Not Checking Per-Unit Comps<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why it matters:<\/strong> A $960K building sounds expensive until you calculate $80K\/unit. If comparable buildings sell at $100K\u2013$110K\/unit, you are getting a 20\u201327% discount. Per-unit pricing is how commercial brokers and lenders evaluate multifamily \u2014 not total price.<\/p>\n<p><strong>Fix:<\/strong> Research per-unit sale prices for comparable buildings in the same submarket. The <a href=\"\/multifamily-property-calculator\">multifamily property calculator<\/a> shows price\/unit automatically.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Using_30-Year_Amortization_for_Commercial_Loans\"><\/span><span class=\"ez-toc-section\" id=\"5_Using_30-Year_Amortization_for_Commercial_Loans\"><\/span>5. Using 30-Year Amortization for Commercial Loans<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong>Why it matters:<\/strong> SFR investors default to 30-year terms. Commercial multifamily loans (5+ units) typically use 25-year amortization with a 5 or 10-year balloon. The shorter amortization means higher monthly payments and lower cash flow than you expected. A $720K loan at 7.25% costs $5,213\/mo over 25 years vs $4,912\/mo over 30 years \u2014 $301\/mo less cash flow.<\/p>\n<p><strong>Fix:<\/strong> Enter 25 years (not 30) as the loan term in the calculator for any commercial multifamily loan. Use the <a href=\"\/mortgage-calculator-investment\">investment property mortgage calculator<\/a> to compare amortization schedules.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span>Frequently Asked Questions<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div itemscope itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_is_a_good_cap_rate_for_a_multifamily_property_in_2026\"><\/span><span class=\"ez-toc-section\" id=\"What_is_a_good_cap_rate_for_a_multifamily_property_in_2026\"><\/span>What is a good cap rate for a multifamily property in 2026?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:block\">\n<p itemprop=\"text\">For small to mid-size multifamily (5\u201350 units), cap rates of 6\u20138% are considered good in most markets in 2026. Class A properties in gateway cities may trade at 4\u20135%. Class B\/C properties in secondary markets (Memphis, Cleveland, Indianapolis) regularly hit 7\u20139%. The key is comparing within the same market and property class. Use the <a href=\"\/multifamily-property-calculator\">multifamily property calculator<\/a> to calculate the exact cap rate for any deal.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_expense_ratio_should_I_use_for_a_12-unit_building\"><\/span><span class=\"ez-toc-section\" id=\"What_expense_ratio_should_I_use_for_a_12-unit_building\"><\/span>What expense ratio should I use for a 12-unit building?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Plan for 45\u201350% of Effective Gross Income. This includes property tax, insurance, maintenance, property management (8\u201310%), owner-paid utilities, and CapEx reserves. If the building has on-site laundry, parking fees, or other ancillary income, expense ratio may look lower as a percentage of total income. Always verify against the seller&#8217;s T-12 operating statement \u2014 never underwrite off a pro forma alone.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"How_is_a_multifamily_property_valued_differently_from_a_single-family\"><\/span><span class=\"ez-toc-section\" id=\"How_is_a_multifamily_property_valued_differently_from_a_single-family\"><\/span>How is a multifamily property valued differently from a single-family?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Single-family properties are valued by comparable sales (comps). Commercial multifamily (5+ units) is valued by the income approach: Value = NOI \u00f7 Cap Rate. This means you can directly increase a multifamily property&#8217;s value by increasing rents or reducing expenses \u2014 every dollar of NOI increase translates to $12\u2013$17 of property value (at 6\u20138% cap rates). This is the fundamental advantage of multifamily investing and why value-add strategies are so popular.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_DSCR_do_lenders_require_for_multifamily_loans\"><\/span><span class=\"ez-toc-section\" id=\"What_DSCR_do_lenders_require_for_multifamily_loans\"><\/span>What DSCR do lenders require for multifamily loans?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Most commercial multifamily lenders require a minimum DSCR of 1.20\u20131.25. Agency loans (Fannie Mae, Freddie Mac) for 5+ unit properties require 1.25 minimum. DSCR loans from private lenders may accept 1.15 or even 1.00 at higher interest rates. The higher the DSCR, the better the rate you will receive. Check your deal in the <a href=\"\/dscr-calculator\">DSCR calculator<\/a>. For DSCR loan details, read the <a href=\"\/blog\/dscr-loans-guide-2026\/\">DSCR loans guide<\/a>.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"Should_I_include_CapEx_reserves_in_my_multifamily_analysis\"><\/span><span class=\"ez-toc-section\" id=\"Should_I_include_CapEx_reserves_in_my_multifamily_analysis\"><\/span>Should I include CapEx reserves in my multifamily analysis?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Yes \u2014 always. CapEx (capital expenditures) covers major replacements: roofs, HVAC systems, parking lots, plumbing, windows. Budget 5% of gross rent for newer buildings (under 15 years) and 8\u201310% for older buildings. A 12-unit at $136K gross rent should reserve $6,800\u2013$13,600 per year. Skipping CapEx reserves makes your NOI look better on paper but creates cash flow crises when major systems fail.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"What_is_the_50_rule_in_multifamily_real_estate\"><\/span><span class=\"ez-toc-section\" id=\"What_is_the_50_rule_in_multifamily_real_estate\"><\/span>What is the 50% rule in multifamily real estate?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">The 50% rule is a quick screening tool: assume operating expenses will consume approximately 50% of gross rental income. On a building with $140K gross rent, expenses would be roughly $70K, leaving $70K NOI. It is a rough approximation \u2014 actual expense ratios range from 40% (small, tenant-pays-utilities) to 55% (large, owner-pays-utilities). Use the 50% rule for quick screening, then run exact numbers in the <a href=\"\/multifamily-property-calculator\">multifamily property calculator<\/a> for serious analysis.<\/p>\n<\/div>\n<\/div>\n<div class=\"schema-faq-section\" itemscope itemtype=\"https:\/\/schema.org\/Question\">\n<h3 class=\"schema-faq-question font-bold text-lg cursor-pointer\" itemprop=\"name\" onclick=\"const a=this.nextElementSibling;a.style.display=a.style.display==='none'?'block':'none'\"><span class=\"ez-toc-section\" id=\"How_do_I_calculate_price_per_unit_for_a_multifamily_property\"><\/span><span class=\"ez-toc-section\" id=\"How_do_I_calculate_price_per_unit_for_a_multifamily_property\"><\/span>How do I calculate price per unit for a multifamily property?<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"schema-faq-answer py-2\" itemprop=\"acceptedAnswer\" itemscope itemtype=\"https:\/\/schema.org\/Answer\" style=\"display:none\">\n<p itemprop=\"text\">Price per unit = Purchase Price \u00f7 Number of Units. A $960,000 building with 12 units = $80,000\/unit. Compare this to recent sales of similar buildings in the same submarket. If comps trade at $100K\u2013$110K\/unit, you are buying at a discount. If comps trade at $70K\/unit, you are overpaying. Per-unit pricing is the primary way commercial brokers and appraisers benchmark multifamily deals.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<h2><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span><span class=\"ez-toc-section\" id=\"Related_Calculators_and_Guides\"><\/span>Related Calculators and Guides<span class=\"ez-toc-section-end\"><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><a href=\"\/multifamily-property-calculator\"><strong>Multifamily Property Calculator<\/strong><\/a> \u2014 Full apartment building analysis<\/li>\n<li><a href=\"\/cap-rate-calculator\"><strong>Cap Rate Calculator<\/strong><\/a> \u2014 Forward and reverse cap rate<\/li>\n<li><a href=\"\/noi-calculator\"><strong>NOI Calculator<\/strong><\/a> \u2014 Net Operating Income breakdown<\/li>\n<li><a href=\"\/cash-on-cash-calculator\"><strong>Cash-on-Cash Calculator<\/strong><\/a> \u2014 Yield on invested capital<\/li>\n<li><a href=\"\/dscr-calculator\"><strong>DSCR Calculator<\/strong><\/a> \u2014 Loan qualification check<\/li>\n<li><a href=\"\/rental-property-calculator\"><strong>Rental Property Calculator<\/strong><\/a> \u2014 Single-family analysis<\/li>\n<li><a href=\"\/property-cash-flow-calculator\"><strong>Property Cash Flow Calculator<\/strong><\/a> \u2014 Monthly cash flow projection<\/li>\n<li><a href=\"\/mortgage-calculator-investment\"><strong>Investment Property Mortgage Calculator<\/strong><\/a> \u2014 Compare loan scenarios<\/li>\n<li><a href=\"\/real-estate-roi-calculator\"><strong>Real Estate ROI Calculator<\/strong><\/a> \u2014 Total return with appreciation<\/li>\n<li><a href=\"\/calculators\"><strong>All 30+ Calculators<\/strong><\/a><\/li>\n<\/ul>\n<p>Guides from the blog:<\/p>\n<ul>\n<li><a href=\"\/blog\/good-cap-rate-rental-property\/\">What Is a Good Cap Rate for Rental Property?<\/a><\/li>\n<li><a href=\"\/blog\/how-to-analyze-rental-property-investment\/\">How to Analyze a Rental Property Investment<\/a><\/li>\n<li><a href=\"\/blog\/net-operating-income-guide\/\">Net Operating Income (NOI) Guide<\/a><\/li>\n<li><a href=\"\/blog\/dscr-loans-guide-2026\/\">DSCR Loans: Complete Guide for 2026<\/a><\/li>\n<li><a href=\"\/blog\/investment-property-down-payment-guide\/\">Investment Property Down Payment Guide<\/a><\/li>\n<li><a href=\"\/blog\/investment-property-interest-rates\/\">Investment Property Interest Rates 2026<\/a><\/li>\n<li><a href=\"\/blog\/cap-rate-by-state-best-markets-2026\/\">Cap Rate by State: Best Markets 2026<\/a><\/li>\n<li><a href=\"\/blog\/calculate-rental-property-cash-flow-guide\/\">How to Calculate Rental Property Cash Flow<\/a><\/li>\n<\/ul>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"400\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-calculator-memphis-12-unit.jpg\" alt=\"Multifamily calculator Memphis 12-unit example\" class=\"wp-image-813\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-calculator-memphis-12-unit.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-calculator-memphis-12-unit-300x133.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-calculator-memphis-12-unit-768x341.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>Memphis 12-Unit: $960K, 7.3% cap rate, $622\/mo cash flow<\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"320\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-vs-single-family-comparison.jpg\" alt=\"Multifamily vs single family comparison\" class=\"wp-image-814\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-vs-single-family-comparison.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-vs-single-family-comparison-300x107.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-vs-single-family-comparison-768x273.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>Multifamily vs Single-Family: scale, vacancy risk, and management<\/figcaption><\/figure>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"300\" src=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-key-metrics-target.jpg\" alt=\"Key multifamily metrics target ranges\" class=\"wp-image-815\" srcset=\"https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-key-metrics-target.jpg 900w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-key-metrics-target-300x100.jpg 300w, https:\/\/arvcalc.com\/blog\/wp-content\/uploads\/2026\/08\/multifamily-key-metrics-target-768x256.jpg 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption>Multifamily Metrics: Cap Rate, DSCR, CoC, Expense Ratio targets<\/figcaption><\/figure>\n<p class=\"text-sm text-gray-500\">Sources: <a href=\"https:\/\/www.fanniemae.com\/multifamily\" target=\"_blank\" rel=\"noopener noreferrer\">Fannie Mae Multifamily<\/a> \u00b7 <a href=\"https:\/\/fred.stlouisfed.org\/series\/RRVRUSQ156N\" target=\"_blank\" rel=\"noopener noreferrer\">FRED Rental Vacancy Data<\/a> \u00b7 <a href=\"https:\/\/www.hud.gov\/program_offices\/housing\/mfh\" target=\"_blank\" rel=\"noopener noreferrer\">HUD Multifamily Programs<\/a> \u00b7 <a href=\"https:\/\/www.census.gov\/housing\/hvs\/\" target=\"_blank\" rel=\"noopener noreferrer\">Census Housing Survey<\/a> \u00b7 <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\" target=\"_blank\" rel=\"noopener noreferrer\">NAR Research<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The multifamily property calculator analyzes apartment building deals the way commercial lenders do \u2014 unit-by-unit income, detailed operating expenses, NOI, debt service coverage, and cash-on-cash return. If you are evaluating&#8230;<\/p>\n","protected":false},"author":1,"featured_media":832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-808","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-guides"],"_links":{"self":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/comments?post=808"}],"version-history":[{"count":2,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/808\/revisions"}],"predecessor-version":[{"id":817,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/posts\/808\/revisions\/817"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media\/832"}],"wp:attachment":[{"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/media?parent=808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/categories?post=808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/arvcalc.com\/blog\/wp-json\/wp\/v2\/tags?post=808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}