Your Guide to the Multifamily Property Value Calculator
Whether you're buying, selling, or refinancing, understanding multifamily property value is essential. A good calculator uses the income approach — the industry standard for apartment building valuation.
Essential Inputs
- Gross Potential Rent (GPR): Sum of all unit rents at 100% occupancy
- Vacancy/Credit Loss: Typically 3–5% for well-managed LA properties
- Operating Expenses: Property taxes, insurance, management fees, maintenance, utilities
- Market Cap Rate: The prevailing yield rate for similar properties in your submarket
Step-by-Step Calculation
- Calculate Effective Gross Income: GPR - Vacancy
- Calculate NOI: EGI - Operating Expenses
- Divide NOI by Cap Rate to get estimated value
LA Cap Rate Reference Guide (2024–2025)
- Santa Monica / Venice / Westside: 3.5–4.5%
- Culver City / Mar Vista / Palms: 4.0–5.0%
- South Bay (Manhattan, Hermosa, Redondo): 4.5–5.5%
- Inglewood / Long Beach / Torrance: 5.0–6.5%
Beyond the Calculator
Automated calculators are a starting point, not a final answer. Factors like below-market rents (value-add upside), deferred maintenance, RSO status, and micro-location all affect true market value significantly. Samimi CRE Advisors provides free professional valuations that account for all these factors. Request yours today.