Income-approach valuation

Orem 4-plex — MLS 2125535

232 N 250 E, Orem · Analysis window: 24 months

Step 1

What sold — Orem 4-plexes, last 24 months

We start with every 4-unit multiplex that closed in Orem within the analysis window. Sale prices are time-adjusted to today via ZIP-level ZHVI so we're comparing apples to apples across dates. Rents come from UtahRealEstate's per-unit `UnitTypeActualRent` — the actual leased rent each seller reported to the MLS.

Total closed
27
in Orem, last 24 mo
With rent data
27
usable for cap rate
Median sale $ (adj.)
$921,700
today's dollars
Median gross rent
$4,875
whole building / mo
225 W 1030 N2026-06-12$885,000$885,000+0.0%4 · 4× 2bd$2,763$3,83226.702.17%2150291
842 S 50 E2026-05-29$910,000$909,202-0.1%4 · 4× 2bd$4,760$4,05415.923.92%2145835
114 W 300 S2026-03-23$1,000,000$989,908-1.0%4 · 4× 5bd$5,475$5,19415.074.09%2139961
1062 N 150 W2025-12-12$959,900$956,594-0.3%4 · 4× 2bd$5,450$3,87414.634.35%2116976
1412 S 280 E2025-12-06$925,000$921,700-0.4%4 · 4× 2bd$5,250$3,53114.634.37%2115420
1039 N 150 W2025-11-20$885,000$886,727+0.2%4 · 4× 2bd$4,800$3,51115.394.12%2113837
1552 S 400 E2025-11-20$880,000$880,812+0.1%4 · 4× 2bd$4,400$3,64916.683.75%2113844
70 W 300 S2025-10-23$920,000$924,950+0.5%4 · 4× 2bd$4,000$3,68419.273.21%2119294
1071 N 150 W2025-09-26$910,000$922,688+1.4%4 · 4× 2bd$5,560$3,87413.834.61%2091063
285 N 300 W2025-09-12$880,000$892,269+1.4%4 · 4× 2bd$5,025$3,68814.804.28%2087377
331 S 150 W2025-08-29$887,500$903,293+1.8%4 · 4× 2bd$4,800$3,75015.684.02%2106223
343 S 150 W2025-08-29$887,500$903,293+1.8%4 · 4× 2bd$4,800$3,75015.684.02%2106220
824 N 50 W2025-07-28$1,110,000$1,138,190+2.5%4 · 4× 2bd$6,100$3,34815.554.18%2060984
1155 S 50 E2025-06-17$880,000$900,774+2.4%4 · 4× 2bd$4,600$3,68116.323.85%2066091
624 N 400 W2025-04-17$804,000$824,665+2.6%4 · 4× 2bd$3,650$3,33918.833.29%2056085
92 E 500 N2025-04-03$785,000$800,445+2.0%4 · 4× 1bd$4,400$3,15215.164.19%2069106
201 E 975 N2025-02-24$865,000$879,855+1.7%4 · 3× 2bd, 1× 1bd$5,285$3,54813.874.61%2055155
1038 N 185 W2025-01-28$925,000$951,738+2.9%4 · 4× 2bd$4,400$3,26818.033.51%2027845
188 W 930 N2025-01-06$817,000$840,616+2.9%4 · 4× 2bd$3,450$3,71320.302.98%2030671
271 N 300 W2024-12-30$844,000$872,446+3.4%4 · 4× 2bd$4,875$3,39814.914.27%2029698
359 E 1600 S2024-12-17$935,000$954,740+2.1%5 · 5× 2bd$6,150$3,49212.945.01%2026553
352 S 150 W2024-11-01$1,070,000$1,096,541+2.5%5 · 4× 2bd, 1× ?$5,570$3,59216.413.91%2023265
372 S 150 W2024-11-01$1,070,000$1,096,541+2.5%4 · 4× 2bd$5,540$3,59216.493.89%2023264
330 S 150 W2024-11-01$1,070,000$1,096,541+2.5%4 · 4× 2bd$4,090$3,59322.342.78%2023263
342 S 150 W2024-11-01$1,070,000$1,096,541+2.5%4 · 4× 2bd$5,540$3,59216.493.89%2023266
124 N 130 E2024-11-01$980,000$1,018,361+3.9%4 · 4× 2bd$5,225$3,30016.243.96%2003349
183 W 975 N2024-10-07$1,035,900$1,082,256+4.5%4 · 4× 2bd$5,150$3,26817.513.67%2000621
Step 2

Cap rate for each comp

For every sold 4-plex we back into an implied cap rate:

Vacancy loss — 5% of gross
Property mgmt — 10%
Repairs & maintenance — 5%
CapEx reserves — 5%
Utilities — 5%
Insurance — 0.5%

Taxes: pulled from each MLS listing's taxAnnualAmount (actual county assessed). Missing values fall back to 1.1% of adjusted price. Every other line above is a fixed % of gross rent — applied the same way to every comp and the subject, so the relative cap rates are apples-to-apples. NOI = gross × (1 − 30.5%) − taxes. Cap rate = NOI ÷ time-adjusted price. GRM (gross rent multiplier) = adjusted price ÷ annual gross rent, shown as a cross-check.

Median cap rate
3.96%
Range p25–p75: 3.67% – 4.27% · mean 3.88%
Based on 27 comps.
Median GRM
15.92
Range p25–p75: 14.91 – 17.51 · mean 16.65
Value = annual gross rent × GRM.
Step 3

Cap rate trend — quarterly, last 8 quarters

Cap rates drift with interest rates and investor demand. If the market has been compressing (cap rates falling → values rising) or expanding (cap rates rising → values falling), we want to know before applying a median to today. Each bar is the mean cap rate for 4-plexes that closed in that quarter.

0.0%2.2%4.4%6.6%8.8%11.0%3.9%24-Q4n=83.7%25-Q1n=33.8%25-Q2n=34.2%25-Q3n=54.0%25-Q4n=54.1%
Step 4

Subject property income

Same schedule applied to the subject. Per-unit rents from URE's UnitTypeActualRent. Taxes: actual from MLS if reported, otherwise estimated at 1.1% of the derived value (iteratively).

Units
4
4× 2bd
Rent (monthly)
$6,100
sum of per-unit actual
Annual gross
$73,200
NOI
$46,905
after all opex + taxes
Gross annual rent$73,200
− Vacancy (5%)-$3,660
= Effective gross income$69,540
− Property management (10%)-$7,320
− Repairs & maintenance (5%)-$3,660
− CapEx reserve (5%)-$3,660
− Utilities (5%)-$3,660
− Insurance (0.5%)-$366
− Property taxes (actual)-$3,969
= NOI$46,905
Step 5

Income approach → estimated value

Apply the market median cap rate to the subject's NOI. Also show the GRM cross-check and the p25–p75 value range (lower cap rate → higher value, so the value range is inverted from the cap range).

Cap-rate value
$1,185,958
NOI ÷ 3.96%
GRM cross-check
$1,165,154
annual gross × 15.92
Range (p25–p75 cap)
$1,098,299 – $1,279,218
NOI           = $46,905
Median cap    = 3.96%
Value (cap)   = NOI ÷ cap                              = $1,185,958

Annual gross  = $73,200
Median GRM    = 15.92
Value (GRM)   = gross × GRM                            = $1,165,154
Step 6

Value conclusion

Indicated value — income approach (median cap rate + GRM cross-check)
$1,175,556

Derived from the actual leased rents on sold 4-plex comps in the analysis window, time-adjusted to today and capitalized at the market-median rate. GRM cross-check is the mean of the two methods.

Save this analysis

Come back to it any time from your profile, or email yourself a copy. Requires a free account.

Methodology. Sold 4-unit multiplexes (numberOfUnits = 4) in Orem that closed within the analysis window. Per-unit actual rent from UtahRealEstate PropertyUnitTypes.UnitTypeActualRent — comps without reported rent are shown grey and excluded from aggregates. Sale prices time-adjusted to today via ZIP-level Zillow ZHVI.

Operating expenses (applied consistently to every comp and to the subject): vacancy 5%, property management 10%, repairs & maintenance 5%, CapEx reserves 5%, utilities 5%, insurance 0.5% — all as % of gross rent. Taxes are actual from each MLS listing's taxAnnualAmount; missing values fall back to 1.1% of adjusted price and are marked with *. NOI = gross × (1 − 30.5%) − taxes. Cap rate = NOI ÷ adjusted price.

Adjust via URL: ?months=, ?target=, ?city=.

26-Q1n=13.0%26-Q2n=2no data26-Q3n=0

Mean cap rate per quarter. Empty bars = no fourplex sales in that quarter (small market, expected).