How Much Is My Plex Worth in Montreal 2026? GRM and Rental Yield

1. What is the GRM and how does it work?

The Gross Revenue Multiplier is the simplest and most widely used metric for valuing income properties in Quebec. The formula is straightforward: GRM = Sale Price / Annual Gross Revenue. Conversely, to estimate the value of your plex, you reverse the formula: Estimated Value = Annual Gross Revenue × GRM.

The GRM tells you how many years of gross rent it takes to pay for the building. A GRM of 14 means the purchase price equals 14 years of gross rental income. A lower GRM indicates a better return on investment, while a higher GRM suggests the buyer is paying a premium — typically for location, building condition, or appreciation potential.

According to QPAREB data for Q1 2026, the average GRM across Greater Montreal sits at approximately 13.2x for duplexes and 12.8x for triplexes. Triplexes tend to have a slightly lower GRM because they generate more revenue relative to their price, making them marginally better investments on a pure income basis. However, GRM varies significantly by neighborhood, with central boroughs commanding much higher multipliers than peripheral areas.

It is important to note that GRM uses gross revenue — it does not account for expenses like municipal taxes, insurance, maintenance, or vacancy. This makes it an imperfect but fast and universally understood tool for comparing buildings. For a more precise analysis, investors also look at the capitalization rate (cap rate), which we cover in section 5 below.

2. Step-by-step GRM calculation for your plex

Let’s walk through a concrete example. Suppose you own a triplex in Montreal-Nord with three units rented at $1,400 per month each. Here is the calculation:

This gives a valuation range of $604,800 to $705,600 for a triplex generating $50,400 in annual gross rent. The actual sale price will depend on the building’s condition, the strength of the leases, and the specific micro-market. A well-maintained triplex with long-term tenants on current market leases will command the higher end of the range, while a building needing renovations or with below-market rents may sell closer to the lower GRM.

For duplexes, the math works the same way. A duplex in Montreal-Nord with two units at $1,400/month generates $33,600 annually. At a GRM of 13, that yields an estimated value of approximately $436,800. However, QPAREB data shows that duplexes in Montreal-Nord are actually transacting closer to $710,000 in Q1 2026, which implies many units are rented significantly above $1,400 or that buyers are factoring in renovation upside and appreciation potential.

The lesson is clear: rental income is the single most important driver of plex value. Before listing your plex for sale, ensure your rents are at market rates. Each additional $100/month per unit can add $14,400 to $16,800 to your building’s value (depending on the GRM applied). For a detailed analysis of plex returns, see our guide on plex return on investment in Montreal 2026.

3. Duplex vs triplex values by Montreal neighborhood

Plex values in Montreal vary dramatically by neighborhood. The following table shows median transaction prices for Q1 2026 based on QPAREB data:

The gap between neighborhoods is striking. A duplex on the Plateau Mont-Royal sells for $1,050,000 — nearly 48% more than a comparable duplex in Montreal-Nord at $710,000. Yet the rental income difference is much smaller: Plateau rents average roughly $1,600/unit vs $1,400 in Montreal-Nord. This explains why the Plateau has a higher GRM (14.2x vs 12.5x) — buyers are paying a premium for location, walkability, and long-term appreciation potential.

For investors focused purely on cashflow and return, peripheral neighborhoods like Montreal-Nord and Verdun offer better GRM ratios. For those prioritizing capital appreciation and low vacancy risk, central neighborhoods justify the higher multiplier. The best strategy depends on your investment goals. To explore plex investment strategies in depth, visit our article on investing in a plex in Montreal 2026.

4. What factors affect your plex value?

Beyond gross revenue and GRM, several factors can push your plex’s value above or below the calculated estimate. Understanding these allows you to maximize your property’s worth before selling or refinancing.

• Current rental income vs market rents: if your tenants are paying below-market rent (common with long-term Quebec leases), the building may sell for less than its potential. Buyers will discount the price because Quebec’s TAL (Tribunal administratif du logement) limits annual rent increases.
• Building condition: a new roof (average cost $15,000–$25,000), updated plumbing, and modern electrical panels add tangible value. Major deferred maintenance will be flagged during the pre-purchase inspection and can reduce offers by $30,000 to $80,000.
• Location and transit access: proximity to a metro station, bus line, or the new REM adds a measurable premium. Properties within 500 meters of a metro station typically command a GRM 0.5 to 1.0 point higher.
• Lot size and zoning: a large lot with potential to add units or build a laneway house increases the property’s development value. Always verify the applicable zoning with the borough.
• Vacancy rate: Montreal’s overall vacancy rate sits at 2.1% (CMHC, October 2025), but it varies by neighborhood. Areas with vacancy below 1.5% give sellers more pricing power.
• Energy efficiency: buildings with good insulation, efficient heating systems, and low energy costs are increasingly valued by buyers conscious of operating expenses and environmental regulations.

A professional appraisal considers all these factors to arrive at a fair market value. However, a quick GRM-based estimate gives you a reliable starting point before engaging an appraiser or listing with a broker. The municipal evaluation (available on the City of Montreal website) provides another reference point, though it typically lags behind actual market values by 10–20%.

5. Cap rate vs GRM: which metric should you use?

While GRM is the quickest valuation method, the capitalization rate (cap rate) provides a more accurate picture because it accounts for operating expenses. The cap rate formula is: Cap Rate = Net Operating Income (NOI) / Property Value.

Let’s calculate the cap rate for our Montreal-Nord triplex example. With $50,400 in annual gross revenue, typical operating expenses include: municipal taxes ($4,500), insurance ($2,400), maintenance reserve ($3,000), vacancy provision at 3% ($1,512), and miscellaneous ($600). Total expenses: approximately $12,012. The NOI is $50,400 − $12,012 = $38,388. At a sale price of $705,600, the cap rate is $38,388 / $705,600 = 5.44%.

In Montreal’s 2026 market, cap rates for plexes generally range from 3.5% to 5.5%. Central neighborhoods like the Plateau tend toward the lower end (3.5% to 4.0%), reflecting higher prices relative to income. Peripheral areas like Montreal-Nord offer cap rates closer to 5.0% to 5.5%, which is more attractive for income-focused investors.

When to use GRM: for quick comparisons between buildings, initial screening, and discussions with other investors. GRM is fast and requires only two numbers (price and gross rent). When to use cap rate: for serious purchase decisions, financing applications, and detailed investment analysis. Lenders and sophisticated investors will always ask for the cap rate because it reflects actual profitability after operating costs.

Frequently asked questions — Plex valuation Montreal 2026

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