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Multifamily Tools

Multifamily Property Value Calculator

Apartment buildings trade on income, not on what the house next door sold for. Enter net operating income and a market cap rate to get an income-approach value, then check that number against price per unit and gross rent multiplier.

Income Value—
Price / Unit—
GRM—
Ask vs Value—
Calculator

Income approach

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Build NOI from a rent roll on theCap Rate Calculator.

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Cap paid on recent sales of similar buildings, not a national average.

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Value
NOI ÷ cap—
Price per unit—
GRM—

Cap sensitivity
CapValue$/Unit

How multifamily value is calculated

Value = NOI ÷ cap rate. If a sixplex nets $72,000 a year and similar buildings in that submarket trade at a 7.5% cap, the income value is $960,000. Move the cap 50 basis points and the value moves with it — that is what the sensitivity table is for.

Price per unit and GRM

Price per unit is total value divided by doors. Use it against recent sales of similar unit counts in the same pocket of metro Atlanta. GRM is price divided by annual gross rent. It ignores vacancy and expenses, so it is a screen, not a conclusion. If GRM looks cheap but the T-12 expenses are high, the income value will say so.

Asking price vs income value

Put the list price in the ask field. If income value is under the ask, the seller is pricing growth or a lighter expense load than you underwrote. If it is over the ask, the listing may already be discounted to the cap you used. Financing, cash-on-cash, and DSCR are on the Investment Analyzer. Cap rate from a rent roll is on the Cap Rate Calculator.

Questions

How do you value an investment property?

For rentals, start with the income approach: divide stabilized NOI by the cap rate buyers are paying in that market. Cost and sales comps are checks. They are not the primary number on a 5–20 unit building.

What is a good cap rate for multifamily in Georgia?

Small Class B/C product outside the urban core often clears in the mid-to-high 6s through the 8s, depending on condition, tenancy, and deferred maintenance. Use a cap from recent sales of similar buildings, not a national average.

What is GRM on a multifamily property?

Gross rent multiplier equals price divided by annual scheduled rent. It is fast and it hides bad expenses. Pair it with NOI and cap rate before you treat it as a bid.

Does this include the mortgage?

No. Cap-rate value is unlevered. Debt changes cash flow and DSCR, not the income value of the asset. Run leverage on theInvestment Analyzer.

Is this an appraisal?

No. It is the same three screens a buyer or listing broker uses before an appraisal: income cap, price per unit, and GRM. An appraiser adds inspected comps and a cost approach.

Screening estimate only. Not an appraisal, lending decision, or offer. Confirm NOI from a T-12 or rent roll and cap rates from closed sales before you bid.