Commercial Multifamily Cap Rate NOI 2027 Calculator
Calculate detailed NOI and cap rate for 5+ unit multifamily commercial property. Per-unit metrics, expense ratio, classifies cap rate against 2027 Class A/B/C/D ranges.
| Gross Scheduled Income (GSI) | — |
| Less Vacancy + Bad Debt | — |
| Plus Other Income | — |
| Effective Gross Income (EGI) | — |
| Total Operating Expenses | — |
| Net Operating Income (NOI) | — |
| Expense Ratio (Opex ÷ EGI) | — |
| Cap Rate (NOI ÷ Price) | — |
| Class Benchmark Comparison | — |
Commercial multifamily (5+ units) is priced on cap rate, not comps. NOI = Effective Gross Income minus Operating Expenses (excluding debt service, depreciation, CapEx). Cap rate = NOI / Price. 2027 multifamily cap rates (CBRE Q4 2025): Class A core 4.75-5.50%, Class B 5.50-6.75%, Class C 6.75-8.25%, Class D 8.25-10%+. Source: CBRE Multifamily Cap Rate Survey Q4 2025, Marcus & Millichap.
How Cap Rate Drives Multifamily Pricing
Multifamily (5+ units) trades on cap rate. To estimate value: NOI ÷ market cap rate = price. A property generating $250k NOI in a 6.0% cap market is worth $4.17M. Push NOI up by $50k (raise rents 5%, cut OpEx 3%) → value rises to $5.0M. Cap rate is set by the market, not negotiable. Forced appreciation = NOI growth, not buying lower.
2027 Cap Rate Trends
Cap rates compressed dramatically 2020-22 (4.5% Class A), then expanded as rates rose 2022-24 (5.5-6.0% Class A). 2027 CBRE survey: Class A 4.75-5.50% (institutional Sun Belt urban core), Class B 5.50-6.75% (workforce/secondary), Class C 6.75-8.25%, Class D 8.25%+. Tier 1 markets compressed faster; Tier 2/3 stayed elevated. Going-in cap = property cap at close; exit cap = your assumed cap at sale (usually +50-75 bps for safety).
Expense Ratio Reality Check
Stabilized multifamily expense ratios (OpEx ÷ EGI) typically run 40-55%. Anything below 35% means missing categories — vacancy, payroll, reserves. Anything above 60% means heavy turnover, deferred maintenance, or weak management. Common seller pro forma trick: omit reserves and turnover. Always re-underwrite to T12 actuals + your forward assumptions.
Last updated May 2026. Sources: CBRE Cap Rate Survey Q4 2025, Marcus & Millichap Research.