Multifamily calculator
Run the numbers on a 2-4 family before you offer.
Rent every unit or live in one. Change any number.
Price, rent and tax start from published Worcester figures.See sources
From a published figureAssumption
- Price $680,000, from a published figure
- Rent $1,950 a unit, published figure
- Tax $9,030 a year, from a published figure
- Vacancy 5%, assumption
- Insurance $4,200 a year, assumption
- Other costs $1,800 a unit, assumption
- Management 0%, assumption
- Down payment 25%, assumption
- Rate 7.0%, assumption
- Term 30 years, assumption
- Closing about 3%, assumption
For each quarter’s sales, price per unit and rents, get the Worcester County multifamily report
Price $680,000. Near $679K, the middle asking price of 100 multifamily homes for sale in Worcester.
Redfin, September 30, 2026. Asking prices, not sale prices.
Rent $1,950. Worcester’s 2-bedroom asking rent. HUD’s Fair Market Rent for a 2-bedroom in the Worcester area is $2,043.
Zillow Rental Manager, September 28, 2026. HUD FY2027 Fair Market Rents, Worcester HUD Metro FMR Area. Worcester rents by bedroom.
Tax $9,030. That is $680,000 at Worcester’s tax rate on homes, $13.28 per $1,000. The real bill uses the city’s value for the building, which can differ from the price.
Massachusetts DOR Division of Local Services, FY2026 tax rates.
The other eight. My guesses, not published figures. Use the building’s real numbers.
A licensed lender sets your rate and terms. Closing costs vary by lender and deal.
Your building
Starts near $679K, the middle asking price for Worcester multifamily (Redfin, Sep 30, 2026).
Worcester asking rents. Zillow Rental Manager, Sep 28, 2026.
Yearly costs$18,630 a year
Follows the price at Worcester’s FY2026 tax rate on homes, $13.28 per $1,000 (MA DOR). The real bill uses the city’s value for the building.
An assumption. Use a quote for the building.
Water, sewer, repairs and reserves. An assumption.
Rent lost to empty units. 5% is about 18 days a year.
0% if you manage it yourself.
Loan25% down, 7.0%, 30 years
The rate is an example, not a quote. A licensed lender sets your terms.
What’s left each monthWhat you add each monthYour cost to live there each month
$612 a month
After vacancy, costs and the loan payment.
Cap rate 7.1%Income after costs, as a share of the price.
Full monthly cost $4,946
More numbers
- Cash-on-cash return
- 3.9%
- Net operating income
- $48,060
- Debt coverage
- 1.18x
- Gross rent multiplier
- 9.7
Estimates only, not financial advice.
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Where the rent goes
Rent collected, minus expenses and the mortgage, is your cash flow.
You live in one unit. Rent counts from the other 2.
| Rent, a yearRent from 2 units, a year | $70,200 |
|---|---|
| Rent lost to empty units | -$3,510 |
| -$18,630 | |
| Property tax | -$9,030 |
| Insurance | -$4,200 |
| Water, sewer, repairs and reserves, all units | -$5,400 |
| Management | $0 |
| Net operating income | $48,060 |
| Mortgage payments | -$40,717 a year$3,393 a month |
| Cash flowYour net housing costLeft over | $7,343 a year$612 a month$1,241 a month$14,887 a year |
What each result means
Cap rate7.1%
What the building earns on its price, before any mortgage. Use it to compare buildings.
Your numbers: $48,060 net operating income divided by the $680,000 price is 7.1%.
Cash flow
What is left each month after expenses and the mortgage. Below zero means you add money each month.
Your numbers: $7,343 a year, divided by 12, is $612 a month.
Net housing cost
What you pay each month to live there, after rent from the other units. Below zero means their rent covers everything, with that much left over.
Your numbers: $40,717 in mortgage payments minus $25,830 net operating income is $14,887 a year, or $1,241 a month.
Cash-on-cash return3.9%
A year of cash flow divided by the cash you put in.
Your numbers: $7,343 divided by $190,400 is 3.9%. The $190,400 is $170,000 down plus $20,400, about 3% of the price, for closing.
Net operating income
Rent collected minus expenses. The mortgage is not an expense here, so it is left out.
Your numbers: $66,690 collected minus $18,630 in expenses is $48,060.
Debt coverage1.18x
Net operating income divided by a year of mortgage payments. Above 1.00x, the building’s income covers the loan. Each lender sets its own minimum.
Your numbers: $48,060 divided by $40,717 is 1.18x.
Gross rent multiplier9.7
The price divided by a year of rent, before vacancy or expenses. A quick way to compare asking prices. Lower means more rent for each dollar.
Your numbers: $680,000 divided by $70,200 is 9.7.
Estimates from the numbers you entered above. The rate is an example, not a quote. Not financial advice.