Rental Property Valuation Calculator
Estimate the market value of an income property from its revenue (and expenses), independent of the asking price.
Building
Annual operating expenses (optional)
Capitalization rate range (editable)
Value estimate
Net operating income (NOI, annual)$46,560.00
Estimated value by capitalization (low / median / high)
$776,000.00$931,200.00$1,164,000.00
Estimated value by gross rent multiplier$558,720.00
Estimate based on standard formulas (capitalization, gross rent multiplier) and indicative rate ranges, not real-time market data. Does not replace a professional appraisal — always validate with a licensed appraiser or real estate broker before a transaction.
Track your building's value over time
Once the building is acquired, Gestion de portes centralizes your income, expenses, and finances to track its profitability and estimated value over time.
FAQ
Frequently asked questions about property valuation
How do you evaluate the value of an income property?+
The most common method is the capitalization approach: divide the annual net operating income (NOI) by a capitalization rate representative of the market for that building type. The gross rent multiplier (annual gross rents × a multiplier) serves as a cross-check, especially for small plexes.
What's a good capitalization rate in Québec?+
It varies by building size and local market — small plexes (2 to 5 units) generally trade at lower rates (so higher values per dollar of income) than buildings with 12+ units. The ranges suggested here are indicative and adjustable — they don't replace a comparison with recent sales in the area.
Does this calculator replace a professional appraisal?+
No. It provides an estimate based on standard formulas (capitalization, gross rent multiplier), without accounting for the building's actual condition, comparable sales, or replacement cost — approaches a licensed appraiser would consider for a formal appraisal.
What's the difference between the capitalization approach and the gross rent multiplier?+
The capitalization approach accounts for operating expenses (NOI ÷ rate), making it more precise but more sensitive to estimated expenses. The gross rent multiplier (gross revenue × multiplier) is simpler and based solely on revenue, often used as a quick benchmark for smaller buildings.
Another question? Write to us