The plex is the only real estate segment with sustained growth in Montreal in 2026. While single-family homes stagnate and condos progress modestly, income properties show +7% in sales and +8% on median price, which now reaches $841,800. Record rental demand, combined with falling interest rates, creates a favourable environment for investors.
But be warned: a plex is not a passive investment. Between tenant management, unexpected repairs, and constraints from the Tribunal administratif du logement (TAL), you need to know the numbers before signing. This guide covers GRM by neighbourhood, cash-on-cash return calculations, the mandatory down payment, and concrete risks.
Whether you are targeting a duplex in Villeray or a triplex in Montreal-Nord, here is everything you need to know to make an informed decision in 2026.
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Estimate my property📈 The plex market in 2026
$841,800
Median plex price (+8%)
+7%
Sales increase
2.25%
BoC policy rate
Income properties (2-5 units) are the most dynamic segment of the Montreal market. The combination of the rental crisis, falling rates, and sustained immigration is pushing demand toward plexes. Active listings remain below the historical average, creating a seller’s market for plex owners.
💡 Key trend: 5-year fixed rates are at 3.69% and variable rates at 3.35%. With a policy rate at 2.25%, financing conditions are the most favourable since 2022 for real estate investors.
📊 GRM by neighbourhood: where to invest?
The GRM (Gross Revenue Multiplier) is the #1 indicator for plex investors. It is calculated as: GRM = purchase price ÷ gross annual rental income. The lower the GRM, the better the return. Here are the ranges by neighbourhood in 2026:
| Neighbourhood | GRM | Typical price | Annual rents |
|---|---|---|---|
| Montreal-Nord | 14-16x | $550,000 - $700,000 | $38,000 - $46,000 |
| Riviere-des-Prairies | 15-17x | $625,000 - $800,000 | $40,000 - $48,000 |
| Saint-Leonard | 16-18x | $700,000 - $900,000 | $42,000 - $52,000 |
| Villeray | 18-20x | $850,000 - $1,100,000 | $46,000 - $58,000 |
⚠️ Interpretation: a GRM of 14x means the price equals 14 years of gross rents. In Montreal-Nord, a triplex at $600,000 generating $42,000/year gives a GRM of 14.3x — one of the best returns on the island.
Concrete example — Villeray: a duplex listed at $950,000 with two units rented at $2,200/month each generates $52,800/year in rent. Its GRM is 18x ($950,000 ÷ $52,800). This is in the high range, meaning the investor is betting more on appreciation than on rental yield.
Concrete example — Montreal-Nord: a triplex at $620,000 with three units generating a total of $3,600/month ($43,200/year) gives a GRM of 14.4x. The gross rental yield reaches 7%, which compensates for a more moderate appreciation potential.
💰 Down payment: the 20% rule
For a plex purchased as a pure investment (you do not occupy any unit), the minimum down payment is 20%. This is non-negotiable. No CMHC insurance is available for non-owner-occupied properties.
Duplex $700,000
$140,000
20% investor down payment
Triplex $841,800
$168,360
20% investor down payment
Owner-occupied $841,800
$84,180
10% down + CMHC
💡 Pro tip: if you occupy one of the units in the plex (2-4 units), the down payment drops to 5-10% with CMHC insurance. This is the favourite strategy of first-time buyer-investors. Your rental income is also factored into your mortgage qualification calculation.
Beyond the down payment, plan for closing costs: notary ($1,500 - $2,500), welcome tax (up to $15,000 for a plex at $841,800), pre-purchase inspection ($800 - $1,200), and tax adjustments. Total budget: add 3-4% of the purchase price for closing costs.
💸 Cash-on-cash return: the real indicator
The GRM is useful for comparing plexes to each other, but the cash-on-cash return measures your actual return on money invested. Formula:
Cash-on-cash = (Net annual income ÷ Total cash invested) × 100
Example: triplex in Montreal-Nord ($620,000)
• Gross rental income: $43,200/year
• Mortgage (3.69%, 25 years): $31,200/year
• Property taxes: $5,000/year
• Insurance: $2,400/year
• Maintenance (5%): $2,160/year
• Vacancy (3%): $1,296/year
Net income: $43,200 - $42,056 = $1,144/year
Down payment: $124,000 (20%) + $5,000 (fees) = $129,000
Cash-on-cash = $1,144 ÷ $129,000 = 0.9% (cash flow only)
⚠️ Reality check: cash-on-cash from cash flow alone is often low (< 2%) in Montreal in 2026. The real profitability comes from three combined sources: cash flow, mortgage principal repayment (~$12,000/year), and appreciation (+8%, or ~$50,000/year). Total real return: ~49%on down payment in the first year.
Cash flow
0.9%
Principal repaid
9.3%
Appreciation (+8%)
38.4%
⚠️ Risks and pitfalls to know
Investing in a plex is not without risk. Here are the five main pitfalls that can turn a good investment into a nightmare:
Bad tenants
Missed payments, property damage, conflicts. The eviction process in Quebec can take 6-12 months through the TAL. Always run credit checks and require systematic references.
Major repairs
Roof ($15,000 - $30,000), plumbing ($5,000 - $20,000), foundation ($20,000 - $60,000). Set aside 5% of gross annual income for maintenance and build an emergency fund.
Rental vacancy
Even with a low vacancy rate in Montreal (~2-3%), an empty unit for 2 months costs $3,000 - $5,000 in lost rent plus renovation costs to prepare for the next tenant.
TAL constraints
Rent increases are regulated in Quebec. A plex with below-market rents will take years to catch up. Check current leases and the history of rent increases before buying.
Interest rate risk at renewal
Your mortgage will be renewed in 5 years. If rates go back up to 5%+, your payments increase significantly. Stress-test your budget with a 5.25% rate.
✅ Checklist before buying a plex
💰 Finances
☐ 20% down payment available
☐ Mortgage pre-approval
☐ Emergency fund (6 months of expenses)
☐ Closing costs budget (3-4%)
🔍 Due diligence
☐ Full pre-purchase inspection
☐ Current lease verification
☐ Rent history and increases
☐ GRM and cash-on-cash calculation
🏠 Property
☐ Roof and plumbing age
☐ Foundation condition
☐ Municipal compliance (zoning)
☐ Recent certificate of location
📋 Management
☐ Tenant management plan
☐ Non-occupant owner insurance
☐ TAL knowledge
☐ Real estate accountant/tax advisor
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